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.

US Legal Forms
Spec Forms
Arkansas
Inter Vivos QTIP Trust with Principal to Donor's Children on Spouse's...

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

Q: What is a QTIP marital trust?

A qualified terminable interest property trust (&quot;QTIP trust&quot;) 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.

Category:

Trusts - QTIP

State:

Multi-State

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.

Nebraska Request for Attendance at Meeting

View this form

Nevada Request for Attendance at Meeting

View this form

New Hampshire Request for Attendance at Meeting

View this form

New Jersey Request for Attendance at Meeting

View this form

New Mexico Request for Attendance at Meeting

View this form

New York Request for Attendance at Meeting

View this form

Acquisition Divestiture Merger Agreement S...

View this form

Lead Based Paint Disclosure for Rental Tra...

View this form

USLF Multistate Patent and Trademark Law H...

View this form

Release of Claims for Personal Injuries by...

View this form

Affidavit in Support of Modification

View this form

Waiver and Release From Liability For Mino...

View this form

General Guaranty and Indemnification Agree...

View this form

General Power of Attorney for Property

View this form

Equity Share Agreement

View this form

Sample Letter for Rejection - School or Co...

View this form

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

Finding the appropriate genuine document template can be a challenge. Certainly, there are numerous templates accessible online, but how do you locate the authentic form you need? Utilize the US Legal Forms website.

The service provides thousands of templates, including the Arkansas Inter Vivos QTIP Trust with Principal to Donor's Children on Spouse's Death, which can be utilized for both business and personal purposes.

All forms are verified by professionals and comply with federal and state regulations.

Once you have verified that the form is correct, click the Buy now button to purchase the form. Choose the subscription plan you desire and provide the necessary information. Create your account and finalize an order using your PayPal account or credit card. Select the format and download the legal document template to your device. Complete, modify, print, and sign the acquired Arkansas Inter Vivos QTIP Trust with Principal to Donor's Children on Spouse's Death. US Legal Forms is the ultimate resource for legal templates where you can find diverse document formats. Use the service to obtain professionally-crafted papers that adhere to state regulations.

If you are already a member, sign in to your account and click the Download button to obtain the Arkansas Inter Vivos QTIP Trust with Principal to Donor's Children on Spouse's Death.
Use your account to review the legal forms you may have previously purchased.
Navigate to the My documents section of your account to retrieve another copy of the document you need.
If you are a new user of US Legal Forms, here are simple steps to follow.
First, confirm that you have selected the correct form for your area/region. You can examine the form using the Review option and read the form description to ensure it is suitable for you.
If the form does not meet your requirements, utilize the Search box to find the appropriate form.

Form popularity

FAQ

678 trust (because the surviving spouse does not own the corpus). A QTIP trust can be drafted, however, to meet the QSST requirements. Both the QSST and the QTIP trust require the current distribution of all income to the surviving spouse as the current income beneficiary.

26 If a surviving spouse acquires the remainder interest in a trust subject to a QTIP election under section 2056(b)(7) in connection with the transfer by the surviving spouse of property or cash to the holder of the remainder interest, the surviving spouse makes a gift both under section 2519 and sections 2511 and

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.

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.

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.

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.

For some individuals, their plan may need minor tweaks. A QTIP trust for a surviving spouse, that is not a conduit trust, may need to be adjusted to allow distributions to be spread out over the surviving spouse's life expectancy.

The QSST may be useful for estate planning purposes. It may also be useful for holding S stock for the benefit of a minor or incompetent. Individuals, estates, and certain trusts are subject to a net investment income tax, which is an additional tax of 3.8%.

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.