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Inter Vivos QTIP Trust with Principal to Donor's Children on Spouse's Death Form

Inter Vivos QTIP Trust with Principal to Donor's Children on Spouse's Death Form

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upon death a married person can leave an unlimited amount of property to the surviving spouse with no tax consequences the property must be left outright but there is an exception for something known as qtip Roger McGowan with the Washburn School of Law joins us now with a breakdown Roger let's start with some background on the qualified terminable interest Property Trust and how it ties into all of this yeah good to be with you Tammy a Q-tip trust is an irrevocable trust that takes effect when the first spouse dies it's sets up a life estate in the trust property for the surviving spouse when the re with the remainder going to uh whoever the deceased spouse wants it to whoever they designate so it's an exception to the rule that the memorable deduction only applies to property of the passes outright to the surviving spouse so it allows that deceased spouse to claim a marital deduction for the life estate property that passes to the surviving spouse so what are

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