Projecting the amount an investor will possess at the time of their death and the portion liable for federal estate taxes has always been an intricate process. Generous estate tax exemptions and the ability to transfer the deceased spouse’s unused exemption amount have made estate planning considerably easier for many wealthy couples. However, factors like second marriages, children from previous marriages, generational family wealth, questions about which partner will outlive the other, the potential for remarriage, and various subsequent life events keep the unpredictability of estate planning at the forefront.
While estate taxes can often be managed within current laws, what if there are assets you want to preserve within the family? Perhaps you anticipate your surviving spouse will remarry, and you want to prevent the new spouse from gaining rights to family property. Alternatively, you might have children from a previous marriage and want to ensure they receive their inheritance. A Qualified Terminal Interest Property (QTIP) trust is an estate planning tool that can maintain assets within the family bloodline.
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