Lifetime QTIP Trusts – The Gift That Keeps Giving

Estate planning for married couples can be tricky when one spouse is significantly wealthier than the other and each spouse wants different beneficiaries to ultimately inherit their estate.  One solution to this problem is the Lifetime QTIP Trust. What is a Lifetime QTIP Trust? One traditional estate planning model for married couples makes use of the “AB Trust” strategy.  After the first spouse dies, the “B Trust” holds an amount equal to the federal estate tax exemption (currently $5.34 million in 2014), and the “A Trust” holds the excess.  The “A Trust” is a “QTIP Trust” or “Marital Deduction Trust” [...]