Revocable Trust for Married Individual: Credit Shelter and QTIP Trusts with GST Tax Planning (Florida)

This legal template revolves around the establishment of a revocable trust specifically designed for a married individual residing in the state of Florida. The trust incorporates two primary trust structures: a credit shelter trust and a qualified terminable interest property (QTIP) trust, both of which aim to minimize potential estate tax burdens and ensure comprehensive estate planning.

The credit shelter trust component of the template allows the individual to maximize the utilization of their federal estate tax exemption, thereby shielding a significant portion of their assets from being subject to estate taxes upon their death. By strategically allocating assets into this trust, the individual can pass them on to their beneficiaries while minimizing the overall tax liability.

The QTIP trust portion of the template serves dual purposes. It grants the surviving spouse the ability to receive income from the trust assets while preserving the principal for future beneficiaries, ensuring the financial security of the surviving spouse. Furthermore, the QTIP trust allows the individual to retain control over the ultimate distribution of the trust assets, ensuring they are distributed according to their wishes.

Additionally, this legal template incorporates GST (generation-skipping transfer) tax planning. By leveraging the provisions outlined in this template, the individual can minimize or avoid any potential tax liabilities associated with the transfer of assets to their grandchildren or individuals more than one generation removed, commonly referred to as skip persons.

Overall, this comprehensive trust template aims to provide married individuals in Florida with effective estate planning tools, while also considering tax efficiencies and ensuring the distribution of assets according to their wishes, both during and after their lifetime.