When you are planning your estate and looking at all of the options available to you, it can get a bit overwhelming. That’s why you should have an experienced Woodland Hills trust attorney on your side, someone who can answer your questions and help you find the best ways to protect your assets and beneficiaries. One potential method is establishing a QTIP trust, but this might not be the best setup for absolutely everyone.
What Are the Benefits of a QTIP Trust?
A QTIP trust can help you take care of a surviving spouse while keeping other assets protected for other beneficiaries. When you set up this type of trust you are making an arrangement to provide an income for your spouse after you pass away. This income can pass to them without creating a large tax burden because it is considered a marital deduction. It’s also important to not that the spouse’s right to an income cannot be reduced or eliminated.
Assets not used by the spouse can easily be passed on to other beneficiaries later. So you can still pass down important assets to your children without having to worry about your spouse being left without enough to live on. A surviving spouse also would not be able to remarry and give away your assets to a new partner.
Is a QTIP Trust Good For People With Blended Families?
QTIP trusts are actually a great idea for anyone who has children from previous marriages. Your assets are protected and your current spouse is provided for. Even if there is bad blood between family members, such a trust allows you to minimize conflict by making it clear how your estate will be split up.
When Does This Trust Go Into Effect?
The QTIP trust goes into effect as soon as you pass away. The trustee can begin doing everything that they can to help your trust create income. Your spouse can then draw money from that trust. Once they pass away, your other assets can be passed down to your children and other beneficiaries in the way that you would prefer.
Who Should I Appoint as Trustee?
Some people make their spouse the trustee, but this is not the best plan for a QTIP trust. In some situations, having your spouse be in charge of this type of trust can just cause discord with other family members. Having another family member or someone who is seen as neutral, like an attorney, in charge of your QTIP trust could make things easier for everyone.
Talk to an Estate Planning Lawyer Today
If you are ready to set up trusts and make your estate plan, don’t tackle these complex tasks on your own. Instead, contact the Law Offices of Yacoba Ann Feldman and schedule your consultation. We would love to tell you more about what our experienced attorneys can do to help you.