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

This legal template is a comprehensive document that creates a revocable trust specifically designed for married individuals residing in the state of Texas. The trust is structured to include both a Credit Shelter Trust and a Qualified Terminable Interest Property (QTIP) Trust, with an emphasis on efficient planning for the generation-skipping transfer (GST) tax.

A revocable trust, also known as a living trust, allows individuals to maintain control over their assets during their lifetime while providing a smooth transfer of these assets upon their death, avoiding probate. The inclusion of a Credit Shelter Trust aims to optimize the utilization of federal estate tax exemptions by maximizing the assets that can be passed on to beneficiaries free from estate taxes.

Furthermore, the template incorporates a QTIP Trust, which allows the grantor to provide financial support to their surviving spouse while still maintaining control over the ultimate distribution of trust assets to designated beneficiaries, such as children or other dependents.

Additionally, this legal template pays particular attention to GST tax planning, which focuses on minimizing taxes on transfers made to individuals who are two or more generations younger than the grantor. The inclusion of efficient GST tax planning provisions ensures that the trust is structured in a way that minimizes potential tax liabilities and maximizes the value of the estate that can be passed on to the intended beneficiaries.

Overall, this legal template provides a comprehensive framework for married individuals in Texas to establish a revocable trust that effectively combines the benefits of a Credit Shelter Trust and a QTIP Trust, while also incorporating strategic planning to minimize GST tax implications.