Drafts of Revocable Trusts with Credit Shelter and QTIP Trusts with GST Planning for Married Individual (Letter to Client)

This legal template is a letter addressed to a client, specifically a married individual, under USA law. It pertains to the drafting and creation of revocable trusts with credit shelter and qualified terminable interest property (QTIP) trusts, while also incorporating generation-skipping transfer (GST) planning.

Revocable trusts are legal entities that allow individuals to manage and distribute their assets during their lifetime and after their death, while also maintaining the flexibility of making changes or revoking the trust as circumstances dictate. Credit shelter trusts, also known as bypass trusts, are designed to maximize estate tax exemptions by utilizing the available tax exemptions of both spouses.

In addition, QTIP trusts refer to trusts that provide income for a surviving spouse while ensuring that the assets pass in a specific manner, often to predetermined beneficiaries such as children or other heirs. These trusts can help defer estate taxes until the surviving spouse's death.

Lastly, the legal template incorporates GST planning, which involves setting up trusts to skip one or more generations when transferring assets, thereby reducing or avoiding generation-skipping transfer taxes.

Overall, this letter template addresses the complex nature of estate planning for a married individual under USA law, focusing on revocable trusts with credit shelter and QTIP trusts, while also including GST planning to ensure efficient wealth transfer and minimize potential tax liabilities.