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.
The Nevada Inter Vivos TIP Trust with Principal to Donor's Children on Spouse's Death is a type of trust that is established during the lifetime of the granter (donor) and offers specific provisions for the disposition of assets upon the death of the granter's spouse. This trust is commonly used to provide financial security for the surviving spouse while ensuring that the assets ultimately go to the children or other designated beneficiaries of the donor. Key features of the Nevada Inter Vivos TIP Trust with Principal to Donor's Children on Spouse's Death include: 1. Asset Protection: By creating this trust, the granter can protect the assets from potential creditors, ensuring that they pass to the intended beneficiaries on the death of the spouse. 2. Surviving Spouse's Support: The trust may provide for the financial support and maintenance of the surviving spouse through provisions such as mandatory distributions of income or principal. 3. Control and Preservation: The granter can maintain some level of control over the assets during the surviving spouse's lifetime. This allows the granter to ensure that the assets are managed and preserved according to their wishes. 4. Distribution to Children: Upon the death of the surviving spouse, the principal of the trust is distributed to the donor's children or other designated beneficiaries. This ensures that the assets are ultimately passed down the family line. Other Types of Nevada Inter Vivos TIP Trusts with Principal to Donor's Children on Spouse's Death may include: 1. Irrevocable Nevada Inter Vivos TIP Trust: This type of trust cannot be altered or revoked after it has been created, providing additional asset protection and peace of mind for the granter. 2. Testamentary Nevada Inter Vivos TIP Trust: This trust is created through the granter's will and comes into effect after the granter's death. It allows for the control and distribution of assets to the surviving spouse and then to the donor's children or other beneficiaries. 3. Hybrid Nevada Inter Vivos TIP Trust: This trust combines features of both irrevocable and revocable trusts, allowing some flexibility for the granter while also providing asset protection and control. In summary, the Nevada Inter Vivos TIP Trust with Principal to Donor's Children on Spouse's Death is a valuable estate planning tool that provides for the financial security of a surviving spouse while ensuring that assets ultimately go to the donor's children or other designated beneficiaries. Various types of this trust offer different levels of control, asset protection, and flexibility, allowing granters to choose the option that best suits their specific needs and goals.
