Revocable Trust for Married Individual: Credit Shelter and QTIP Trusts (California)

This legal template likely pertains to a revocable trust designed specifically for married individuals residing in California. The template specifically includes provisions for both a credit shelter trust and a QTIP trust, which are common types of trusts used in estate planning.

A credit shelter trust, also known as a bypass or family trust, allows a married individual to pass on a portion of their assets (up to the estate tax exemption limit) to their beneficiaries upon their death, while still providing their surviving spouse with income and access to the trust's principal. By utilizing this type of trust, the individual can reduce or eliminate estate taxes, ensuring that their wealth is protected and efficiently transferred to future generations.

On the other hand, a qualified terminable interest property (QTIP) trust allows the married individual to maintain control over their assets while ensuring that their surviving spouse is taken care of during their lifetime. This type of trust provides an income stream to the surviving spouse and gives the individual control over how the remaining trust assets are ultimately distributed, typically to their chosen beneficiaries (often children or other family members).

Therefore, this legal template likely combines the features of both a credit shelter trust and a QTIP trust. It enables a married individual in California to establish a revocable trust that maximizes tax benefits, safeguards assets, and ensures the financial well-being of their spouse and intended beneficiaries. This template is likely comprehensive, outlining legal provisions, responsibilities, and guidelines for the establishment and administration of the trust, adhering to California's specific laws and regulations concerning trusts.