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 Suffolk New York Inter Vivos TIP Trust with Principal to Donor's Children on Spouse's Death is a specific type of trust arrangement that allows individuals to transfer their assets to their spouse during their lifetime while ensuring that the principal is ultimately distributed to the donor's children upon the spouse's death. This kind of trust provides a comprehensive estate planning strategy for individuals who want to provide for their spouse during their lifetime while also preserving their children's inheritance. Keywords: Suffolk New York, Inter Vivos TIP Trust, Principal, Donor's Children, Spouse's Death, estate planning, trust arrangement, assets, transfer, lifetime, inheritance. There are different variations of Suffolk New York Inter Vivos TIP Trust with Principal to Donor's Children on Spouse's Death, including: 1. Revocable Inter Vivos TIP Trust: This type of trust allows the donor to retain control over the assets during their lifetime and make changes or revoke the trust if necessary. However, upon the donor's death, the principal is automatically transferred to the children. 2. Irrevocable Inter Vivos TIP Trust: In this type of trust, the donor forfeits control over the assets once they are transferred. It provides more certainty in the distribution of assets upon the donor's death and offers potential tax advantages. 3. Lifetime Income Inter Vivos TIP Trust: This variation allows the spouse to receive income generated by the trust's principal during their lifetime, ensuring their financial security. After the spouse's death, the remaining principal is transferred to the donor's children. 4. Medicaid Planning Inter Vivos TIP Trust: Designed for individuals who may require long-term care and qualify for Medicaid in the future, this trust helps protect assets from Medicaid claims while still providing for the spouse during their lifetime. Upon the spouse's death, the remaining principal is distributed to the children. It is important to consult with an experienced estate planning attorney in Suffolk, New York, to determine which type of Inter Vivos TIP Trust with Principal to Donor's Children on Spouse's Death best suits your specific circumstances and goals.A Suffolk New York Inter Vivos TIP Trust with Principal to Donor's Children on Spouse's Death is a specific type of trust arrangement that allows individuals to transfer their assets to their spouse during their lifetime while ensuring that the principal is ultimately distributed to the donor's children upon the spouse's death. This kind of trust provides a comprehensive estate planning strategy for individuals who want to provide for their spouse during their lifetime while also preserving their children's inheritance. Keywords: Suffolk New York, Inter Vivos TIP Trust, Principal, Donor's Children, Spouse's Death, estate planning, trust arrangement, assets, transfer, lifetime, inheritance. There are different variations of Suffolk New York Inter Vivos TIP Trust with Principal to Donor's Children on Spouse's Death, including: 1. Revocable Inter Vivos TIP Trust: This type of trust allows the donor to retain control over the assets during their lifetime and make changes or revoke the trust if necessary. However, upon the donor's death, the principal is automatically transferred to the children. 2. Irrevocable Inter Vivos TIP Trust: In this type of trust, the donor forfeits control over the assets once they are transferred. It provides more certainty in the distribution of assets upon the donor's death and offers potential tax advantages. 3. Lifetime Income Inter Vivos TIP Trust: This variation allows the spouse to receive income generated by the trust's principal during their lifetime, ensuring their financial security. After the spouse's death, the remaining principal is transferred to the donor's children. 4. Medicaid Planning Inter Vivos TIP Trust: Designed for individuals who may require long-term care and qualify for Medicaid in the future, this trust helps protect assets from Medicaid claims while still providing for the spouse during their lifetime. Upon the spouse's death, the remaining principal is distributed to the children. It is important to consult with an experienced estate planning attorney in Suffolk, New York, to determine which type of Inter Vivos TIP Trust with Principal to Donor's Children on Spouse's Death best suits your specific circumstances and goals.
