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

This legal template is designed for married individuals residing in the state of Texas who wish to establish a revocable trust. The key focus of this template is to incorporate two specific types of trusts within the revocable trust structure, namely the Credit Shelter Trust and the Qualified Terminable Interest Property (QTIP) Trust.

A Credit Shelter Trust, also known as a bypass trust or a family trust, allows the grantor to pass a certain amount of assets to beneficiaries (typically children or other loved ones) free from estate taxes. This means that the assets held in this trust will not be included in the grantor's taxable estate upon their passing and will ultimately minimize the tax liability for the beneficiaries. The Credit Shelter Trust template will outline the specific terms and conditions under which the assets will be held and distributed.

On the other hand, a QTIP Trust is designed to provide income and support for a surviving spouse while allowing the grantor to control the ultimate distribution of the trust assets after the spouse's death. By utilizing this type of trust, the grantor can ensure that their surviving spouse is adequately taken care of, while still maintaining control over the ultimate beneficiaries of the trust. The QTIP Trust template will establish the provisions for income distributions to the surviving spouse and the subsequent distribution of the remaining trust assets.

Overall, this legal template offers a comprehensive framework for married individuals in Texas to establish a revocable trust that incorporates both the Credit Shelter Trust and QTIP Trust. By utilizing these trusts, individuals can protect their assets, minimize estate tax liabilities, provide for their surviving spouse, and maintain control over the ultimate disposition of their estate.