Estate Planning | Making a Difference One Family at a Time

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QTIP trustA lot of folks assume that they have to accept certain estate planning limitations, because they do not understand all the tools that are in the toolkit.

In reality, there is almost always going to be an ideal reaction to situations that appear to be complicated on the surface. With this in mind, let’s look at estate planning for parents that are getting remarried relatively late in their lives.

Covering All Bases

The best way to explain this estate planning scenario is to use of a simple example. Let’s say that you are a middle-aged man, and you have been divorced for quite a while. You have done very well financially, and you have children from your previous marriage that are self-supporting adults.

At some point, you fall love with someone that is a bit younger than you are, and you decide that you would like to get married. From an estate planning perspective, you want to provide for your new spouse appropriately.

However, you don’t want to put the inheritances that you intend to leave to your children at risk in any way. Under these circumstances, you could satisfy both aims if you create a qualified terminable interest property (QTIP) trust.

To implement this strategy, you fund the trust, and you name a trustee. It can be someone that you know personally, but many people will use the trust section of a bank or a trust company. Your spouse would be the first beneficiary of the trust, and your children would be the final beneficiaries.

If you do in fact predecease your spouse, the trustee would distribute the earnings that are generated by assets in the trust to your spouse in accordance with your wishes. You would have the ability to give the trustee the latitude to distribute portions of the principal if this is your choice.

The surviving spouse would also be able to use property that is technically owned by the trust. For example, if you convey your home into the trust, your spouse would be able to live in it for the rest of their life.

Clearly, the first beneficiary would be very comfortable, but they would not be able to change the terms of the trust in any way. After this beneficiary passes away, your children would become the beneficiaries.

Attend a Free Seminar

Since you are on this site, you must be interested in learning about the estate planning process. We have plenty of content here to explore, and it is all offered free of charge. Plus, if you want to take your knowledge to another level, we have some great opportunities coming up in the near future.

We are conducting a series of seminars that will convey a great deal of very useful information. These sessions are offered on a complimentary basis, and we have chosen different strategic locations in our service areas.

There is no charge to attend our seminars, but we ask that you register in advance so we can reserve your seat. You can visit our seminar page to see the schedule, and when you identify the session that works for you, follow the simple instructions to register.

Need Help Now?

If you have already decided that you would like to discuss your estate planning goals with a licensed attorney, we would be more than glad to help. We are sensitive to people with safety concerns, so if you would like to consult with us remotely, this can definitely be arranged.

At the consultation, we can gain an understanding of your position and your objectives and explain your options. When you make decisions, we will apply our expertise to create a custom crafted plan that is ideal for you and your family.

You can set up an appointment right now if you give us a call at 860-548-1000, and there is a contact form on this site you can use to send us a message.

Jeffrey A. Nirenstein, Estate Planning Attorney
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