St. Petersburg Qualified Terminable Interest Property Trust Attorney
Many people create trusts in order to ensure their families have financial assistance. In most cases, the assets held within a trust are meant to financially support loved ones after a person’s death. Many people also create trusts to ensure their spouse, in particular, is cared for. In these instances, a qualified terminable interest property trust, also known as a QTIP, will focus on distributing property to your partner. This type of trust is often used when a person has a child from a previous relationship. Below, our St. Petersburg qualified terminable interest property trusts attorney explains how these tools work and the benefits they provide.
How Does a Qualified Terminable Interest Property Trust Work?
Like many other types of trusts, after you establish a QTIP, property is placed into it, which can benefit your spouse. QTIPs are unique because your spouse is a partial beneficiary. You can also name future beneficiaries who will have a right to any remaining assets within the trust if your spouse passes away.
For instance, you may have a child from a previous relationship. You want to make sure they are provided for after your death, but you need to make sure your spouse is provided for, as well. Although your spouse will receive some of the assets within the trust, they do not control the property. They cannot donate or sell the property within the trust. After your spouse passes away, any remaining property in the trust will be distributed to your beneficiaries, such as your child.
Creating a QTIP can help you resolve conflict within the family by ensuring that your wishes are made clear. When creating a QTIP, you must also name a trustee, who will manage the trust according to your wishes and control the assets of the trust. Your trustee is the one who will make payments to your spouse from the funds within the trust. Your trustee can also invest assets within the trust, increasing its overall value. To minimize family discord, it is usually best to name a third party as the trustee.
Delaying the Estate Tax with a QTIP
Florida law does not have laws regarding estate taxes, but federal law does. Depending on how much your estate is worth, those taxes can often be very high, meaning your family members will receive a smaller portion of your estate. You can use a QTIP trust to delay the tax liability until after your spouse passes away, even if they survive you. After your spouse passes away, their estate is subject to the federal estate tax, including any assets held within the QTIP trust. If you feel as though this would be beneficial for your spouse, a QTIP trust might be the right option for you.
Our QTIP Trusts Attorney in St. Petersburg Can Assist with Your Case
You have many trust options available, and it is not always easy to determine which one is right for you. David Toback is a St. Petersburg qualified terminable interest property trusts attorney who can advise you of your options and help you choose the one right for you. Call us now at 813-252-7529 or contact us online to book a consultation.