A retired estate planning attorney who is a personal friend of my husband's is recommending a Qtip Trust for us because we have no children and we want to combine our assets and then split them after we both die and give it to his side of the family and mine. I am concerned about the lack of control I would have if I were the surviving spouse, even considering that I am the Trustee. This attorney is saying not to worry, that I'll be able to get all income and access principal under most circumstances (health, support, comfort, welfare or happiness). I may want to sell the house, buy an additional house, rent the house, etc. I want to travel and enjoy my remaining years if I am the one surviving. I am not sure I trust that he is up to date on all the legal matters and he just dismisses any of my concerns. Legally, can a QTIP have language that gives me the control I want?
We want to ensure the surviving Spouse has everything they want and need after first spouse dies, while also getting at least the one step up in basis at death of first spouse. We also want to feel confident that the final beneficiaries stay intact. We would probably just do a Living Trust except for the concern that the surviving spouse could get taken advantage of and change things or give all the money to a new significant other in a moment of emotional weakness. LOL. We feel we trust each other but others could take advantage of incapacition. Then there is also the second step us in basis with a QTIP, but I won't trade that for lack of access to my money. Any suggestions between a Qtip, living trust or just keeping separate trusts?
Here are our basics:
- Live in California
- 71 & 73 years old, no children, no mortgage, no debt, married in our 50's
- No real estate other than principal residence, no life insurance, just brokerage accts and IRAs
- All of our accounts are currently in our own names, no joint accounts, value of accounts is pretty equal between us
- Estate with the house and all accounts is currently well under the estate tax threshold of 6 million per person after the tax act sunsets in 2026
- After death of surviving spouse, want to leave money to brothers, sisters, nieces, nephews, one charity
Thanks in advance for any insight on this decision!
We want to ensure the surviving Spouse has everything they want and need after first spouse dies, while also getting at least the one step up in basis at death of first spouse. We also want to feel confident that the final beneficiaries stay intact. We would probably just do a Living Trust except for the concern that the surviving spouse could get taken advantage of and change things or give all the money to a new significant other in a moment of emotional weakness. LOL. We feel we trust each other but others could take advantage of incapacition. Then there is also the second step us in basis with a QTIP, but I won't trade that for lack of access to my money. Any suggestions between a Qtip, living trust or just keeping separate trusts?
Here are our basics:
- Live in California
- 71 & 73 years old, no children, no mortgage, no debt, married in our 50's
- No real estate other than principal residence, no life insurance, just brokerage accts and IRAs
- All of our accounts are currently in our own names, no joint accounts, value of accounts is pretty equal between us
- Estate with the house and all accounts is currently well under the estate tax threshold of 6 million per person after the tax act sunsets in 2026
- After death of surviving spouse, want to leave money to brothers, sisters, nieces, nephews, one charity
Thanks in advance for any insight on this decision!
Statistics: Posted by skohl — Wed Oct 09, 2024 4:16 pm — Replies 0 — Views 41