QTIP Trust

A QTIP (qualified terminable interest property) trust is an important estate planning trust most often used in second marriage situations in which a person with assets wants to provide for his / her second spouse, ensure that his / her children will receive his / her assets upon the spouse's death, and minimize or postpone estate inheritance taxation. Under a QTIP trust, the surviving spouse and only the surviving spouse must be entitled to receive income from the trust. The surviving spouse can also receive the trust principal; however, that use can be limited by standards that you establish to be administered by the trustee that you appoint.

Upon the spouse's death, the trust assets are then distributed to your named beneficiaries, after the trust pays any inheritance tax that may be due by inclusion of the trust in your spouse's estate. While there may be some inheritance tax due, if the QTIP is planned right by a Pembroke Pines estate planning attorney, then the estate taxes will be minimized and their payment will be postponed. Couples in first marriages usually have no need or interest in a QTIP, particularly if the couple owns their property together and intend that the same people, usually their children, are to inherit their property. In that case, they would possibly be better served with a different estate planning vehicle, such as a Revocable Trust with credit shelter trust provisions.

Contact a QTIP Trust Lawyer in Pembroke Pines.