This is another form of marital trust. Q-tip refers to qualified terminal interest property - property that is not given anywhere near outright to the surviving spouse but still qualifies for the marital deduction. If this provision of the law is used the surviving spouse need only get all the income from the trust. He or she need not be given the right to say who gets the trust assets on his or her death, although he or she can be given that right. This is great if you don't want your surviving spouse's second spouse or their kids to get your property.

This type of trust also gives the executor of your estate additional flexibility for post mortem planning. Your executor is the person you name to establish the validity of your will, collect your assets, pay your bills and distribute the balance as you direct. He or she has the right to elect how much of the trust will be taxable and how much will be tax free due to the marital deduction.

NOTE: There currently is no Federal or state estate tax or generation skipping tax. The gift tax is still in effect. Whether or not the estate and generation skipping taxes will be reinstated this year is not known. Many people expect that they will be reinstated, but what will happen is not known. What the rates and exemptions will be if the taxes are reinstated is also not known. Click here for more.

Donald M. Thompson * 55 W. Monroe #3950; Chicago, IL 60603
Ph: 312-782-0844 * Fax: 312-201-1436 * Email: donthompsonlaw@sbcglobal.net