Revocable Trust For Married Individual: Credit Shelter & QTIP Trusts with GST Tax Planning

This legal template is a document designed for married individuals who are interested in implementing a revocable trust as part of their estate planning strategy. The template specifically addresses two types of trusts: Credit Shelter Trust and QTIP Trust, and it incorporates GST (Generation-Skipping Transfer) tax planning provisions.

A Credit Shelter Trust, also known as a bypass or A-B trust, is a common estate planning tool used by married couples to maximize federal estate tax exemptions. This trust allows the grantor to transfer assets up to the allowable exemption amount into the trust upon their death, thereby minimizing estate taxes for the surviving spouse and future generations.

A QTIP (Qualified Terminable Interest Property) Trust, on the other hand, provides the surviving spouse with income and control over certain assets while ensuring that the remaining assets pass to other beneficiaries, such as children or grandchildren, upon the surviving spouse's death. This type of trust allows for greater flexibility in the distribution of assets and can provide additional protection for blended families.

The inclusion of GST tax planning provisions in this legal template demonstrates the intent to minimize or eliminate estate taxes for multiple generations. The GST tax is levied on transfers to grandchildren or more remote descendants, and this template aims to structure the trusts in a way that optimizes tax benefits and preserves wealth for successive generations.

Overall, this legal template is a comprehensive document that combines the benefits of a revocable trust with the specialized features of credit shelter and QTIP trusts. It offers married individuals a flexible and tax-efficient strategy for protecting and transferring their assets to their loved ones.