A trust is a fiduciary relationship in which one party holds legal title to another's property for the benefit of a party who holds equitable title to the property. An inter vivos trust is a trust that becomes effective during the lifetime of the person creating the trust (the settler or trustor).
A qualified terminable interest property trust, often referred to as a "QTIP" trust, allows a bequest to a spouse in trust that, after a proper election by the beneficiary spouse, qualifies for the unlimited marital deduction:
" if the beneficiary spouse is entitled to all of the income from the trust property,
" if the income is payable annually or at more frequent intervals, and
" if no person, including the beneficiary spouse, has the power to appoint any part of the qualifying property to any person other than the beneficiary spouse during the beneficiary spouse's lifetime.
In order that the property transferred to a surviving spouse by means of an inter vivos marital deduction trust qualify for the marital deduction, the property must be includible in the trustor's gross estate for federal estate tax purpose.
An Oregon Inter Vivos TIP Trust with Principal to Donor's Children on Spouse's Death is a type of trust specifically established in the state of Oregon. This type of trust allows the donor, also known as the creator or the granter, to transfer assets to a trust during their lifetime while still maintaining control over those assets. The trust is often set up to ensure that the surviving spouse is taken care of after the donor's death, while also providing for the ultimate distribution of the trust assets to the donor's children. In an Oregon Inter Vivos TIP Trust with Principal to Donor's Children on Spouse's Death, the term "TIP" stands for "Qualified Terminable Interest Property." This means that the surviving spouse has a "life interest" in the trust assets, allowing them to receive income and/or other benefits from the trust during their lifetime. However, the principal of the trust is ultimately designated to be distributed to the donor's children upon the spouse's death. There can be various types of Oregon Inter Vivos TIP Trusts with Principal to Donor's Children on Spouse's Death, depending on the specific goals and preferences of the donor. Here are a few examples: 1. Income-Only TIP Trust: This type of trust provides the surviving spouse with income generated by the trust assets while preserving the principal for the donor's children. The surviving spouse may receive regular distributions of income but does not have direct control over the principal. 2. Discretionary TIP Trust: In this trust, the trustee has discretion over both income and principal distributions to the surviving spouse. The trustee determines the amount and timing of distributions based on the spouse's needs and the trust terms set by the donor. Upon the spouse's death, the remaining trust assets pass to the donor's children. 3. Diversionary TIP Trust: With this type of trust, the surviving spouse is entitled to income and/or principal distributions from the trust during their lifetime. However, if the surviving spouse does not require the trust assets, they can be directed back to the donor's children upon the spouse's death. 4. Testamentary TIP Trust: Unlike an inter vivos trust, a testamentary TIP trust is created upon the donor's death through their will or another legal document. This type of trust ensures that the surviving spouse is provided for during their lifetime, and the principal is ultimately distributed to the donor's children. Overall, an Oregon Inter Vivos TIP Trust with Principal to Donor's Children on Spouse's Death allows for specific arrangements that protect the interests of both the surviving spouse and the donor's children. It is important to consult with a qualified estate planning attorney to explore the various options available and create a trust that aligns with your unique circumstances and intentions.An Oregon Inter Vivos TIP Trust with Principal to Donor's Children on Spouse's Death is a type of trust specifically established in the state of Oregon. This type of trust allows the donor, also known as the creator or the granter, to transfer assets to a trust during their lifetime while still maintaining control over those assets. The trust is often set up to ensure that the surviving spouse is taken care of after the donor's death, while also providing for the ultimate distribution of the trust assets to the donor's children. In an Oregon Inter Vivos TIP Trust with Principal to Donor's Children on Spouse's Death, the term "TIP" stands for "Qualified Terminable Interest Property." This means that the surviving spouse has a "life interest" in the trust assets, allowing them to receive income and/or other benefits from the trust during their lifetime. However, the principal of the trust is ultimately designated to be distributed to the donor's children upon the spouse's death. There can be various types of Oregon Inter Vivos TIP Trusts with Principal to Donor's Children on Spouse's Death, depending on the specific goals and preferences of the donor. Here are a few examples: 1. Income-Only TIP Trust: This type of trust provides the surviving spouse with income generated by the trust assets while preserving the principal for the donor's children. The surviving spouse may receive regular distributions of income but does not have direct control over the principal. 2. Discretionary TIP Trust: In this trust, the trustee has discretion over both income and principal distributions to the surviving spouse. The trustee determines the amount and timing of distributions based on the spouse's needs and the trust terms set by the donor. Upon the spouse's death, the remaining trust assets pass to the donor's children. 3. Diversionary TIP Trust: With this type of trust, the surviving spouse is entitled to income and/or principal distributions from the trust during their lifetime. However, if the surviving spouse does not require the trust assets, they can be directed back to the donor's children upon the spouse's death. 4. Testamentary TIP Trust: Unlike an inter vivos trust, a testamentary TIP trust is created upon the donor's death through their will or another legal document. This type of trust ensures that the surviving spouse is provided for during their lifetime, and the principal is ultimately distributed to the donor's children. Overall, an Oregon Inter Vivos TIP Trust with Principal to Donor's Children on Spouse's Death allows for specific arrangements that protect the interests of both the surviving spouse and the donor's children. It is important to consult with a qualified estate planning attorney to explore the various options available and create a trust that aligns with your unique circumstances and intentions.
