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 Kansas Inter Vivos TIP Trust with Principal to Donor's Children on Spouse's Death is a type of trust designed to provide for the surviving spouse while ultimately benefiting the children of the trust's creator, also known as the donor. This trust allows the donor to maintain control over the distribution of assets even after their death, ensuring that the surviving spouse is taken care of while also providing for the donor's children or other beneficiaries. Keywords: Kansas, Inter Vivos TIP Trust, Principal, Donor's Children, Spouse's Death, Trust, Assets, Distribution, Beneficiaries. There are different types of Kansas Inter Vivos TIP Trusts with Principal to Donor's Children on Spouse's Death depending on individual circumstances and preferences. Some common variations include: 1. Traditional Inter Vivos TIP Trust: This trust allows the donor to transfer assets into the trust during their lifetime. After the donor's death, the surviving spouse receives income generated from the trust's principal, while the principal is ultimately distributed to the donor's children or other designated beneficiaries upon the surviving spouse's death. 2. Testamentary Inter Vivos TIP Trust: Created within a will, this trust is established upon the donor's death. It allows the donor to designate a specific portion of their estate to fund the trust, providing income to the surviving spouse during their lifetime. Upon the spouse's death, the principal is then distributed to the donor's children or other designated beneficiaries. 3. Charitable Inter Vivos TIP Trust: This type of trust provides for both the surviving spouse and charitable organizations. The donor designates a portion of the trust's principal to be distributed to a chosen charitable cause or organization upon their death, while the remaining assets are distributed to the donor's children or other beneficiaries. 4. Revocable Inter Vivos TIP Trust: This flexible trust allows the donor to retain control over the assets and make changes to the trust's provisions during their lifetime. Upon the donor's death, the surviving spouse becomes the income beneficiary, with the principal ultimately distributed to the donor's children or other designated beneficiaries. It is important to consult with an experienced estate planning attorney to determine the most suitable type of Kansas Inter Vivos TIP Trust with Principal to Donor's Children on Spouse's Death based on individual goals, family dynamics, and tax considerations.
