When you plan on leaving an estate behind after your death, nobody wants some stranger to benefit from it rather than their own family. Probably one of the biggest fears many people have in terms of leaving behind some kind of legacy is: "what if it ends up in the wrong hands" or "what if my wife [or husband] re-marries and some other guy ends up with my money and my house". In the case of re-marriage most people would want their estate to pass to their children, but in case their spouse doesn't re-marry most people would want the estate to take care of their spouse.
One of the most effective estate planning strategies to address many of these concerns is what is known as a Qualified Terminable Interest Property Trust or QTIP Trust. Essentially a QTIP Trust allows you create an A-B type of trust arrangement while restricting property left for your spouse's benefit in case things don't go according to plan. For example provisions might limit use of funds from the trust to only pay for family expenses, or might prohibit access if the spouse remarries.
The advantage of QTIP interests is that you can designate who you ultimately want to receive the assets once your spouse is either unavailable or "unworthy" to receive them. So, if your spouse were to pass on and wanted to leave property to his children from a second marriage, your QTIP trust property could instead be left to your own children or other family members. Essentially that means that you get to ultimately control the distribution of your property and under what conditions it is distributed.
Most of us will never have to worry about Anna Nicole Smith stepping in and taking our kid's share of estate property. But if that's even a remote possibility, wouldn't it be worth making sure that there's no incentive for someone to do so. I mean if your spouse were to re-marry could we at least make it so that it's not about their money? With a proper trust planning you can!
If you're curious about how to make sure your family will properly be taken care of and where your estate is ultimately going to end up, call the attorneys at Inter Vivos (801) 477-1570, to schedule a consultation. After all, estate planning is not only about what you own- it's about what you value.
"Let Us Earn Your Family's Trust"