How is a qtip trust taxed
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
