In estates in which an estate tax return will be filed, the PR should consider filing an extension for the time to file the return if assets are passing into a QTIP trust
The assets in her estate, including the assets in the QTIP trust
, will receive a basis equal to their value at the date of her death (helpful if there has been appreciation in the value of the property between the two deaths).
Warshaw (1), is to make gifts from a marital QTIP trust
The designation of the QTIP trust
as a beneficiary did not trigger the acceleration of tax on the IRD when the plan passed to the trust.
5 million by the lime Daisy passes away, and the properly was owned by Daisy or by a QTIP trust
202) If a QTIP trust
is employed, the trust will also be cognizable under the gross estate provisions via elective provisions.
Almost routinely, advisors encourage the use of a QTIP Trust
as the preferred technique for blended families with higher net worth.
A QTIP trust
allows the surviving spouse to receive income from the trust's assets for life but the principal goes to someone else, usually the children.
255) The unlimited marital deduction clause in a QTIP trust
must provide all income (except stub income) to the spouse, at least annually, and disallow any other permissible beneficiary during the spouse's lifetime.
With a QTIP trust
, you can set aside assets that earn income for your surviving spouse for the rest of his or her life.
It describes the two types of marital deductions that provide the needed flexibility, the Clayton contingent QTIP trust
and the marital deducation disclaimer trust.
In order to determine how to best use a QTIP trust
with an IRA, it is imperative that one first understand the IRA distribution rules.