Maximize Your Estate QTIP Tax Election Explained
Qualified Terminable Interest Property (QTIP) trusts are an excellent estate planning tool for individuals who need to save on estate taxes while providing for a surviving spouse and, eventually, chosen heirs and beneficiaries. They provide flexibility and control over the assets and funds held within the irrevocable trust while limiting tax consequences. TAX BENEFITS OF A QTIP TRUST Estate taxes significantly erode the value of assets without meticulous planning. Fortunately, with a QTIP trust, an estate tax is not levied at the time of the first spouse’s death. This protects the surviving spouse from having the value of the trust drained before they can benefit from it. Instead, the taxes are computed after the second spouse’s death, ensuring they can reap the full benefits of the trust throughout the remainder of their life. For family members to take full advantage of the QTIP tax election, the trust must be
established by making a tax election on the executor’s tax return. Furthermore, the trust must include the necessary terms so the election is available. PROVIDING FOR A SURVIVING SPOUSE A QTIP trust is a great way to care for a loved one. The income generated from the trust is paid out to the surviving spouse, ensuring they have a steady source of financial support. The surviving spouse can dip into the principal if it is also necessary (only for the spouse’s needs). It’s worth noting, however, that as an irrevocable trust, removing or selling assets from the trust requires legal approval before execution and may come with significant additional costs to do so. CONTROL ASSETS AND WEALTH FOR FUTURE BENEFICIARIES While ensuring the financial well-being of the surviving spouse is a major priority, it’s equally crucial to ensure the next generation or chosen beneficiaries are
not left behind. For a married couple, the spouses are the grantors and set up the trust together, establishing beneficiaries when they set up or modify the trust. When the first spouse passes, the QTIP portion of the trust is irrevocable so the trust beneficiaries are entitled to the assets within the trust when the second spouse passes away (assuming the surviving spouse does not spend down all assets for their needs). ESTABLISH A QTIP TRUST WITH DAHL LAW GROUP. Estate planning is a nuanced and layered effort to protect your assets and wealth while providing a pathway to peace of mind for your loved ones. At Dahl Law Group, we have a wealth of knowledge and experience. Our team has worked with individuals and business owners in crafting estate plans that get the most out of their legacies. To take advantage of the many benefits of a QTIP trust in your family, contact us today.
Creamy Vegan Mushroom Soup
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Inspired by Simple-Veganista.com
Ingredients • 2 tbsp olive oil • 1 large onion, diced • 4 cloves garlic, minced • 2 lbs mushrooms (cremini or button), sliced • 1/2 cup vegan dry white wine (optional) • 1 tbsp fresh thyme
• 4 cups vegetable broth • 1 14-oz can coconut milk (light or full fat) • 3 tbsp cornstarch, plus 1/4 cup water • 1/4 cup chopped parsley • Salt and pepper, to taste
can create a precious gift for your children, grandchildren, and other loved ones that will preserve your memory for decades to come.
Directions 1. In a large pot, heat oil over medium heat. Add onions and garlic and sauté for 5 minutes. Add the mushrooms, wine (if desired), and thyme and cook for 5 minutes. 2. Add the broth and bring to a boil. Once boiling, cover, reduce heat, and simmer for 10 minutes. Stir in the coconut milk and continue cooking for another 5 minutes. 3. Mix cornstarch with water and add to soup. Stir frequently for 1–2 minutes until soup thickens to desired consistency. 4. Remove from heat and stir in the parsley. Season with salt and pepper and enjoy!
“Don’t let yesterday take up too much of today.” –Will Rogers
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