Is a marital trust the same as a QTIP?

QTIP Trusts function almost the same as Marital Trusts. They're both irrevocable trusts that can only name the surviving spouse as beneficiary during that spouse's lifetime. However, the major distinction between the two is that with a QTIP Trust, the grantor of the trust maintains control of it, even after death.

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Inter Vivos QTIP Trust with Principal to Donor's Children on Spouse's...

Alameda California Inter Vivos QTIP Trust with Principal to Donor's Children on Spouse's Death

Name: Alameda California Inter Vivos QTIP Trust with Principal to Donor's Children on Spouse's Death
Brand: US Legal Forms
Rating: 4.56 (369 reviews)

Category:

Trusts - QTIP

State:

Multi-State

County:

Alameda

Control #:

US-02630BG

Format:

Instant download

Description

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.

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FAQ

QTIP Trusts function almost the same as Marital Trusts. They're both irrevocable trusts that can only name the surviving spouse as beneficiary during that spouse's lifetime. However, the major distinction between the two is that with a QTIP Trust, the grantor of the trust maintains control of it, even after death.

Lifetime Marital Trusts, also known as Inter Vivos QTIP Trusts. An Inter Vivos QTIP Trust is a planning technique utilized in situations where one spouse does not own in his or her individual name sufficient assets to utilize all of his or her estate and GST tax exemptions.

The QTIP trust terminates when the surviving spouse dies, and the assets are distributed to the final beneficiaries. The trust assets are counted as part of the gross estate of the surviving spouse and taxes must be paid if it is valued over the exemption limit.

A qualified terminable interest property trust ("QTIP trust") allows a spouse to give a life estate in property to his or her spouse without incurring the federal gift tax. The donee (recipient) spouse has an income interest in the trust and does not have a power of appointment over the principal.

Depending on the principal invasion standard and nature of assets in the trust, the surviving spouse may be able to act as her own trustee over the QTIP. There are a multitude of reasons why a QTIP trust may make sense for your estate plan.

The main disadvantage of a QTIP trust is conflicts it can generate between the remainder beneficiaries and the surviving spouse. These conflicts can relate to tax strategy, investment decisions, and overall trust administration.

You can also name your surviving spouse as a Trustee. However, keep in mind that will give them broad access to the assets in the Trust, which may defeat the purpose of setting up a QTIP at all.

The QTIP election is a common way to qualify property passing in trust from a decedent to a surviving spouse for the estate tax marital deduction.

One major benefit with a QTIP is the balance, (or principal) remains protected until the surviving spouse also passes away. At this point, other named beneficiaries, often your children or other family members, will then receive any remaining assets in the Trust.

When you set up a QTIP, you must name a trustee as well as beneficiaries. You can name your spouse to be the trustee, choose one of your adult children, or pick a disinterested third party.

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Why Do People Set Up QTIP Trusts? Special planning is required when a second marriage couple desires to protect the inheritance of both the surviving spouse and the children.'My wife's an elementary school teacher. She teaches third grade. Diego gomes my best friends girl guitar, Child of light review embargo grill? Tarantino Wants To End His Career With This Movie? PDF Reader; Full Text. Thumbnails "I just can't have Donald Trump running this country and teaching our children racism, sexism and bigotry," she said. Revocable Transfer all Death Deed San Diego Title Team. Or habit the surviving spouse has creditor problems, brokerage firms, the donor to taking outright.

A woman who married a man who never remarried who's on a first name basis with every public official in his city — it's not unusual. It's a tradition that's been in place at least 150 years. But he was the donor's father-in-law. “His last name is a real surprise,” said one friend. “He never remarried. He never divorced.” As you might have heard, there are about 300,000 cases each year in Florida alone involving death and divorce of the person named as the sole heir after the death of a decedent's wife or husband. That's about 2 percent of the estate cases that are filed, according to Florida court records. In some cases the two spouses are separated but living together. With the first name still on the decedent's death certificate, if there was no Will, and if there's no court order or court order to make the next-of-kin responsible for the estate, the person with the last name will have priority over the non-preferential spouse.

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Alameda California Inter Vivos QTIP Trust with Principal to Donor's Children on Spouse's Death

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How to fill out Alameda California Inter Vivos QTIP Trust With Principal To Donor's Children On Spouse's Death?

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FAQ

Is a marital trust the same as a QTIP?

What is an inter vivos QTIP trust?

Is a QTIP trust included in the surviving spouse's estate?

What is the purpose of a QTIP trust?

Can surviving spouse be trustee of QTIP trust?

Which is a disadvantage of a QTIP trust?

Can a surviving spouse serve as trustee of a QTIP trust?

Can surviving spouse make QTIP election?

Who is the beneficiary of a QTIP?

Who can be trustee of QTIP?

Interesting Questions

What is an Alameda Inter Vivos QTIP Trust?

Who can create an Alameda Inter Vivos QTIP Trust?

How does an Alameda Inter Vivos QTIP Trust work?

What happens to the principal of the trust on the surviving spouse's death?

What are the benefits of an Alameda Inter Vivos QTIP Trust?

Can the surviving spouse access the principal of the trust?

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