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 Georgia Inter Vivos TIP Trust with Principal to Donor's Children on Spouse's Death is a specialized type of trust arrangement that is established during the lifetime of the donor (granter) in the state of Georgia. This particular trust structure combines elements of both a Qualified Terminable Interest Property (TIP) trust and an inter vivos trust, providing specific provisions for the distribution and management of assets upon the death of the granter's spouse or after a predetermined period of time. Keywords: Georgia, Inter Vivos, TIP Trust, Principal, Donor's Children, Spouse's Death, Trust Structure, Qualified Terminable Interest Property, Asset Distribution, Asset Management. There are various types of Georgia Inter Vivos TIP Trusts with Principal to Donor's Children on Spouse's Death, including: 1. Charitable Georgia Inter Vivos TIP Trust: In this variation, a portion of the trust's assets may be designated for charitable purposes upon the death of the granter's spouse. It allows the granter to provide for their children's financial needs while also contributing to a cause they support. 2. Discretionary Georgia Inter Vivos TIP Trust: This type of trust offers flexibility regarding the distribution of assets to the granter's children. The trustee has discretion in allocating funds and can adapt the disbursements based on the changing circumstances and needs of the beneficiaries. 3. Income-Only Georgia Inter Vivos TIP Trust: With this type of trust, the granter's spouse receives only the income generated by the trust assets during their lifetime. After their death, the principal is then distributed to the granter's children. This structure allows the donor to provide for their spouse's financial security while preserving the principal for the children's ultimate benefit. 4. Generation-Skipping Georgia Inter Vivos TIP Trust: This trust provides for the transfer of assets to the granter's grandchildren or future generations, skipping the children as beneficiaries. It enables the granter to support their children during their lifetime while ensuring that the remaining estate is passed down to subsequent generations, potentially minimizing estate tax consequences. 5. Survivorship Georgia Inter Vivos TIP Trust: In this type of trust, the surviving spouse becomes the primary beneficiary. However, upon their death, the remaining assets are distributed to the granter's children as the ultimate beneficiaries. Overall, a Georgia Inter Vivos TIP Trust with Principal to Donor's Children on Spouse's Death offers a strategic estate planning tool for individuals in Georgia who wish to provide for their children's financial security while still ensuring their spouse is cared for during their lifetime. By understanding the different types of trust structures available, individuals can tailor their estate plans to meet their specific objectives, ensuring the smooth transfer of assets and minimizing potential tax implications.
