What is a QTIP Trust? QTIP Trust explained and simplified.

so what's a q-tip trust well folks q-tip

stands for qualified terminable interest

property and the idea behind this Trust

is let's give an example it's the

easiest way to do it mom and dad have an

estate worth two million dollars you

separate that estate into 1 million

apiece one side I'm on dad

the other side on mom dad passes away

normally what happens is that million

dollars goes to mom mom now has an

estate worth two million dollars and in

Massachusetts any states over a million

dollars of subject to estate taxes now

flash-forward let's put two buckets

under dad and mom dad's bucket is brown

mom's bucket is pink when dad passes

away his interest his million dollars

will flow into that brown bucket mom

will have access to the brown bucket

while she's alive but it's never

officially in her name then mom passes

away her it just goes into the pink

bucket and the kids then get both

buckets dumped out to them and neither

estate is over a million dollars Dave

sorry Laura Laura calm