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

This legal template is a letter addressed to a client and concerns the topic of revocable trusts with credit shelter and QTIP (Qualified Terminable Interest Property) trusts, specifically designed for married individuals based in California, under the jurisdiction of USA law.

The content of this template likely includes the attorney's communication with the client, explaining the purpose and benefits of establishing a revocable trust. It may outline the provisions related to credit shelter trusts, which are utilized for estate planning to maximize federal estate tax exemptions for both spouses. Additionally, the template may discuss the inclusion of QTIP trusts, which are useful for ensuring the protection of the surviving spouse's interests while potentially minimizing estate taxes.

Furthermore, the template might include information on the incorporation of GST (Generation-Skipping Transfer) planning within the trust structure. GST planning refers to strategies aiming to minimize or avoid estate taxes for assets passed down to beneficiaries who are at least two generations younger than the grantor. As California follows USA law, the template may touch upon specific state requirements and regulations that need to be considered while creating and implementing these trusts.

Overall, this legal template provides a detailed explanation of the various trust instruments available to married individuals in California with a focus on maximizing the federal estate tax exemptions, protecting the interests of a surviving spouse, and incorporating GST planning into the estate plan.