Utilizing Lifetime QTIP Trusts in Estate Planning: Tax Issues, State Limitations, Key Provisions, and Options

Note: CPE credit is not offered on this program

Recording of a 90-minute CLE webinar with Q&A

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Conducted on Thursday, October 29, 2020

Recorded event now available

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Course Materials

This CLE course will provide guidance to trusts and estates counsel on utilizing lifetime qualified terminable interest property (QTIP) trusts in estate planning under current tax law. The panel will discuss critical issues and pitfalls to avoid in relation to income, gift, estate and GST taxes, state law issues, key drafting considerations, and other items to minimize tax liability and ensure multi-generational gifting and flexible long-term planning.

Description

Individuals often desire to gift assets to family members and close associates during their own lifetimes as well as through wills. Lifetime QTIP trusts provide the ability to resolve issues with married couples whose respective estates are significantly unbalanced, and may provide creditor protection benefits. Estate planners must understand the challenges of utilizing these trusts given the shift in focus from estate tax to income tax to accommodate clients' goals.

A QTIP trust enables the estate of a deceased spouse to take advantage of the marital deduction and maintain control over the distribution of trust assets. It also preserves the deceased spouse's unused GST exemption, provides a step-up in basis upon the death of the surviving spouse, and possibly postpones payment of state level estate taxes.

Estate planners must understand the advantages and limitations of QTIP trusts, the intricacies of the tax code, and implications in regard to exemptions.

Listen as our experienced panel provides a thorough and practical guide to the technical aspects of designing and implementing lifetime QTIP trusts as a means of providing for a spouse while preserving assets for children or other beneficiaries.

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Outline

  1. Considerations for the use of QTIP trusts in estate planning
  2. Tax considerations under current tax law
  3. Potential state law challenges
  4. Other alternative methods for gifting and long-term planning

Benefits

The panel will review these and other high-priority issues:

  • What are the key considerations for the use of QTIP trusts in estate planning?
  • What are the state law challenges?
  • What are the critical elements when structuring QTIP trusts, and what are the pitfalls to avoid?
  • What tax issues arise in the use of QTIP trusts under current tax law?
  • What other methods are available for gifting and long-term planning?

Faculty

Daneri, James
James R. Daneri
Partner
Blanchard Krasner & French

Mr. Daneri focuses his practice in the areas of estate planning, taxation, and business law. His estate planning...  |  Read More

Hemenway, John
John M. Hemenway
Partner
Bivins and Hemenway

Mr. Hemenway is a founding partner of Bivins & Hemenway, P.A. His educational background included substantial...  |  Read More

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