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.
A Tennessee Inter Vivos TIP Trust with Principal to Donor's Children on Spouse's Death is an estate planning tool used to provide for the surviving spouse while ensuring the ultimate distribution of the remaining assets to the children of the donor. This type of trust offers several benefits, including asset protection, estate tax minimization, and control over the distribution of assets. In a Tennessee Inter Vivos TIP Trust, "Inter Vivos" refers to the creation of the trust during the donor's lifetime, as opposed to being established upon their death. "TIP" stands for Qualified Terminable Interest Property, which means that the surviving spouse has the right to receive income from the trust during their lifetime. This ensures that the surviving spouse is provided for financially. Once the surviving spouse passes away, the principal of the trust is directed to pass to the children of the donor. This provision ensures that the children will ultimately inherit the remaining assets, protecting the donor's desires for their estate. Different types of Tennessee Inter Vivos TIP Trusts with Principal to Donor's Children on Spouse's Death can include variations in terms of trustee powers, distribution schedules, and specific provisions tailored to the donor's wishes. These trusts can also be customized to include specific provisions for beneficiaries with special needs or to address any unique family circumstances. By utilizing a Tennessee Inter Vivos TIP Trust, the donor can have peace of mind knowing that their surviving spouse will be taken care of while ensuring that their children are ultimately the beneficiaries of their estate. This trust offers flexibility, control, and protection to the donor's assets and could potentially minimize estate taxes. It is advisable to consult an experienced estate planning attorney in Tennessee to create a trust that accurately reflects the individual's intentions and meets their specific needs.A Tennessee Inter Vivos TIP Trust with Principal to Donor's Children on Spouse's Death is an estate planning tool used to provide for the surviving spouse while ensuring the ultimate distribution of the remaining assets to the children of the donor. This type of trust offers several benefits, including asset protection, estate tax minimization, and control over the distribution of assets. In a Tennessee Inter Vivos TIP Trust, "Inter Vivos" refers to the creation of the trust during the donor's lifetime, as opposed to being established upon their death. "TIP" stands for Qualified Terminable Interest Property, which means that the surviving spouse has the right to receive income from the trust during their lifetime. This ensures that the surviving spouse is provided for financially. Once the surviving spouse passes away, the principal of the trust is directed to pass to the children of the donor. This provision ensures that the children will ultimately inherit the remaining assets, protecting the donor's desires for their estate. Different types of Tennessee Inter Vivos TIP Trusts with Principal to Donor's Children on Spouse's Death can include variations in terms of trustee powers, distribution schedules, and specific provisions tailored to the donor's wishes. These trusts can also be customized to include specific provisions for beneficiaries with special needs or to address any unique family circumstances. By utilizing a Tennessee Inter Vivos TIP Trust, the donor can have peace of mind knowing that their surviving spouse will be taken care of while ensuring that their children are ultimately the beneficiaries of their estate. This trust offers flexibility, control, and protection to the donor's assets and could potentially minimize estate taxes. It is advisable to consult an experienced estate planning attorney in Tennessee to create a trust that accurately reflects the individual's intentions and meets their specific needs.
