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 Inter Vivos TIP Trust with Principal to Donor's Children on Spouse's Death is a specific type of trust that allows for the distribution of principal assets to the donor's children upon the death of their spouse. This trust is often created to provide financial security for the surviving spouse while ensuring that the donor's children ultimately receive the principal assets. The Nebraska Inter Vivos TIP Trust with Principal to Donor's Children on Spouse's Death is a useful estate planning tool that offers numerous benefits. It allows the donor to maintain control over the distribution of their assets while providing for their spouse's needs during their lifetime. Additionally, it ensures that the principal assets are ultimately preserved and transferred to the donor's children, protecting their inheritance. There are several variations of the Nebraska Inter Vivos TIP Trust with Principal to Donor's Children on Spouse's Death, including: 1. Standard Nebraska Inter Vivos TIP Trust: This trust option grants the surviving spouse the right to use the trust's income for their lifetime, after which the principal assets are distributed to the donor's children. 2. Nebraska Inter Vivos TIP Trust with Limited Spousal Rights: In this version, the surviving spouse has limited access to the trust's income, but the principal assets are still reserved for the donor's children upon their death. 3. Nebraska Inter Vivos TIP Trust with Pre-determined Spousal Support: Here, the trust provides a predetermined amount of income or financial support to the surviving spouse for a specified period. After the predetermined period ends, the principal assets are transferred to the donor's children. 4. Nebraska Inter Vivos TIP Trust with Charitable Remainder Beneficiary: This trust structure combines the benefits of supporting a charitable cause with providing for the surviving spouse and donor's children. The trust designates a charitable organization as the remainder beneficiary, ensuring that any remaining assets are donated to the chosen charity after the spouse's passing. 5. Nebraska Inter Vivos TIP Trust with Flexibility Clause: This trust incorporates a flexibility clause to modify the distribution plan based on the circumstances or wishes of the donor during their lifetime. The clause allows the donor to adapt the trust arrangements as needed, ensuring their desires are met. It's important to consult with an experienced estate planning attorney to understand the specific legal requirements and implications of creating a Nebraska Inter Vivos TIP Trust with Principal to Donor's Children on Spouse's Death. They can provide personalized guidance to help determine which type of trust is most suitable for your situation and ensure that your wishes are properly documented and upheld.
