Tampa Qualified Terminable Interest Property Trust Attorney

Florida estate planning is often complicated by a number of factors. For example, if you have children from a prior marriage, you may wish to provide for them, as well as your current spouse, in your will. But simply leaving a large separate inheritance to your children might trigger federal estate and gift tax obligations. One way to get around this issue legally is to create a qualified terminable interest property trust (QTIP).

A QTIP is a type of irrevocable trust that enables you to make sure your spouse is taking care of without putting your other beneficiaries at risk. These trusts can be somewhat complex to implement. So it is important to work with a Tampa QTIP trust attorney who can walk you through the process. Knudsen Law is a full-service Florida estate and probate firm that assists clients in preparing these and many other kinds of trusts.

What Is a Florida QTIP Trust?

A qualified terminable interest property trust sets aside certain property for your spouse, assuming that they survive you. The trust itself only comes into existence after you die. This means that the QTIP trust, once created, is irrevocable. A separate trustee named in the QTIP trust oversees the trust’s assets. Your spouse has no ability to revoke or amend the terms of the QTIP trust. Your spouse must also be a United States citizen.

During your surviving spouse’s lifetime, they will not have access to the principal of any assets in the QTIP trust. Instead, they are entitled to receive the income generated by the trust’s assets. Your spouse must receive income payments from the trust at least once a year. And if the trust’s assets are not generating income, your spouse has the right to demand the trustee convert such property into income-generating assets.

Upon your surviving spouse’s death, the QTIP trust terminates and the assets are then distributed to any beneficiaries that you named in the original trust documents. This is what makes a QTIP trust particularly useful if you want to provide your surviving spouse with income for their lifetime, while preserving the bulk of your estate for your children or other descendants. Additionally, assets placed in a QTIP trust are not considered part of your taxable estate for federal gift and estate tax purposes.

Need Help? Contact Our Tampa QTIP Attorneys

A QTIP trust is not the best choice for every estate planning situation. For example, if your spouse is not a United States citizen, they cannot benefit from a QTIP trust, although there are other types of trust that may be utilized. Also note that QTIP trusts are expressly designed to care for a spouse and not other types of partners or family members.

If you have additional questions and would like to speak with an experienced Tampa qualified terminable interest property trust attorney, contact Knudsen Law today at (727) 398-3600 to schedule a consultation.