QTIP trust?

#1 11-04-2006, 05:10 PM

In article <1162491584.296051.274150[at]h54g2000cwb.googlegroups.com> ,
"Kreig Mitchell" <kreigmitchell[at]hotmail.com> wrote:

- quote -

> tfprusd[at]yahoo.com wrote:
> > Hello, here is my situation. My father and mother held a revocable
> > living family trust ($1.5M current value). My father passed away last
> > month and the trust has converted to irrevocable as specified in the
> > trust guidelines. The trust also specifies that a QTIP trust be
> > created in my father's name that has 50% of the trust value (which is
> > about 750,000). Does this happen automatically or do we need to draw
> > up another trust document, open a bank account and transfer the
> > assests? what assests can be transferred? cash I assume, what about
> > IRAs? what is the time table for this to occur and do we need to
> > notify the IRS when taxes are filed for 2006 (unified tax credit?)
> > > Also on another note. The living trust now has my mother as trustee
> > and myself and brother as successor co-trustees. If she was to
> > remarry, would the new husband be entitled to the living trust assests
> > (outside of the QTIP) even if he's not a named as a trustee or
> > beneficiary?
> > > Thanks for all,
> If the trust was set up the way most QTIP trust was set up -
Your mother as trustee needs to value the estate at the time of death

She needs to apply for an EIN from the IRS for the residual or B trust
She needs to open account(s) with that EIN number
She needs to to put half the assets in those accounts
She may need to retitle real estate and bank accounts

The lawyer who drew up the trust may have left specific instructions. If
not it is worth consulting a lawyer ( I did) and have him do the paper
work and advise you on the details (about two hours if the trust assets
are not too complicated).

Also if remarriage is a possibility, the lawyer will advise on how to
protect assets etc in case it doesn't work out. Normally the QTIP trust
has provisions which protect its contents. That is the part that is
irrevocable. Your mother's half is almost definitely revocable

The above advice is worth what you paid for it.

11-02-2006, 05:53 PM

tfprusd[at]yahoo.com wrote:
- quote -

> Hello, here is my situation. My father and mother held a revocable
> living family trust ($1.5M current value). My father passed away last
> month and the trust has converted to irrevocable as specified in the
> trust guidelines. The trust also specifies that a QTIP trust be
> created in my father's name that has 50% of the trust value (which is
> about 750,000). Does this happen automatically or do we need to draw
> up another trust document, open a bank account and transfer the
> assests? what assests can be transferred? cash I assume, what about
> IRAs? what is the time table for this to occur and do we need to
> notify the IRS when taxes are filed for 2006 (unified tax credit?)
> Also on another note. The living trust now has my mother as trustee
> and myself and brother as successor co-trustees. If she was to
> remarry, would the new husband be entitled to the living trust assests
> (outside of the QTIP) even if he's not a named as a trustee or
> beneficiary?
> Thanks for all,

Tim,

Okay, there are a lot of issues presented in your question. You really
should have an attorney review the actual trust document in light of
the particular state law.... The trust terms should dictate whether
the portion is to be set aside in a separate account or held
individually. Also, did your father's executor actually make the QTIP
election? If not, then what does the trust provide? You may or may
not have to file estate tax returns, depending on the size of the
estate. Regarding your last question, you will have to read the terms
of the trust as it will specifically provide for who gets the trust
assets and when.

Best of luck,

Kreig Mitchell
http://www.coloradotrustattorney.com
http://www.mechanicsofmoney.com/estate-planning.php

#-1 10-10-2006, 09:45 PM

Hello, here is my situation. My father and mother held a revocable
living family trust ($1.5M current value). My father passed away last
month and the trust has converted to irrevocable as specified in the
trust guidelines. The trust also specifies that a QTIP trust be
created in my father's name that has 50% of the trust value (which is
about 750,000). Does this happen automatically or do we need to draw
up another trust document, open a bank account and transfer the
assests? what assests can be transferred? cash I assume, what about
IRAs? what is the time table for this to occur and do we need to
notify the IRS when taxes are filed for 2006 (unified tax credit?)

Also on another note. The living trust now has my mother as trustee
and myself and brother as successor co-trustees. If she was to
remarry, would the new husband be entitled to the living trust assests
(outside of the QTIP) even if he's not a named as a trustee or
beneficiary?

Thanks for all,

-Tim

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