Depending on how much you have in assets and how you want your assets to be passed down after you die, a trust could be an important part of your estate plan. There are many different types of trusts though, so it is important to consult with a Rockland County estate planning lawyer who could tell you what kinds of options could work best for you. One potential option is a QTIP trust, an arrangement that provides for a surviving spouse while protecting other beneficiaries of your estate.
How Does a QTIP Trust Work?
A QTIP trust does two things. It protects your assets while providing your spouse an income to live off of after you pass away. This income is also seen as a marital deduction, so your spouse would not have to worry about taxes on it. This trust can also help you avoid some estate taxes, depending on the size of your estate and how your overall estate plan is set up.
After the surviving spouse dies, the QTIP trust takes the rest of your assets and distributes them to your other beneficiaries.
Should I Set Up a QTIP Trust?
Setting up a QTIP trust is a good idea if you are planning to split your estate up among multiple beneficiaries. A QTIP trust can help your surviving spouse continue to pay for living expenses while ensuring that there is money left behind for your children.
This type of trust can be especially beneficial for people with blended families and multiple marriages. If there is any distrust between your children from a previous marriage and your current spouse, a QTIP trust can help put that to rest. You can be sure that your spouse is provided for. Your children can be sure that your entire estate cannot be squandered before they would get the opportunity to inherit it.
Can I Make My Spouse the Trustee?
You can, but there are some reasons that you should not. Managing a QTIP trust is not a simple job. Additionally, putting your spouse in charge of it could lead to new familial conflicts. If there are disagreements about how to handle assets in the trust and produce more income, it may be better to have a neutral third party, like an attorney or another family member, in charge of things. Otherwise, your children and spouse could end up fighting.
Schedule Your Consultation
When you are ready to get your estate planning process started, contact the Lauterbach Law Firm. We can schedule your appointment and help you learn more about all of your options. Don’t try to navigate this on your own when you could have experienced estate planning attorneys on your side.
