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The Married Person Qualified Terminable Interest Property (QTIP) RLT provides the same benefits as the Single Person Basic Trust and a few additional features.
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It is a Sole-Grantor Trust designed for a married individual.
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The grantor manages his sole and separate property and any one-half undivided interest in marital (community or tenants-in-common) property in the trust.
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Any estate value exceeding the tax exemption equivalent amount may qualify for the marital deduction (the QTIP portion) and shall be held in-trust for the lifetime benefit of the grantor’s spouse.
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Neither the QTIP nor the credit shelter portion are under the surviving spouse's control - unless the Grantor permits spousal administration.
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At the death of the surviving spouse, the entire trust estate will be distributed to grantor’s designated beneficiaries.
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It should be noted that the QTIP portion is in the spouse’s estate, not the grantor’s estate, for transfer tax purposes.
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Any of the spouse’s remaining tax credit can be applied against any transfer tax liability of the grantor’s QTIP trust estate.
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