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Brad
Brad, Retired IRS Agent
Category: Tax
Satisfied Customers: 177
Experience:  Retired; 32 years service and expertise in Individual, Partnership, Trust, Corporate Tax Law;Mensa
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what rights does the beneficiary of a q tip trust have in ...

Customer Question

what rights does the beneficiary of a q tip trust have in obtaining what the person has done concerning the trust over the yrs before the spouse had passed in other words my gather passed giving the q tip to my mother who just passed
Submitted: 6 years ago.
Category: Tax
Expert:  Brad replied 6 years ago.

HelloCustomer

All the income from assets in a Qualified terminable interest property trust would have been paid at least annually for the life of the surviving spouse(your mother). The Q-Tip trust prohibits transfers of any assets to anyone else but the surviving spouse(your mother); the trust can provide for the surviving spouse(your mother) to will the property to one or more individuals among a group previously designated by the deceased spouse(your father).

With Qualified Terminable Interest Property Trust or QTIP trust, your father wished to provide for the support of your mother, but limited your mother's ability to dispose of trust assets at the death of your father. Once an irrevocable QTIP election was made, the only requirement was that all trust income must be payable to your mother at least annually for life, and, as mentioned above, no other person could receive distributions from the trust during your mother's lifetime. A trustee might be given the power to distribute trust principal to your mother, based upon ascertainable standards of health, support, maintenance, and education, but need not be required to do so. At the death of your mother, the property would pass to the beneficiaries as set forth in the trust; or the trust may have given your mother a limited power of appointment to distribute trust property among a group of beneficiaries. Most of the answers you need are in that trust agreement for the Q-Tip as signed by your father.

" The QTIP trust acts like a spendthrift trust by limiting distributions of principal to the surviving spouse based on an ascertainable standard. In addition, a QTIP trust resembles a prenuptial agreement by preventing a new husband or wife of the surviving spouse from acquiring marital rights in property which would otherwise go to the decedent's children." See citation at http://www.lawmmpa.com/mar.htm.

The distributions from the trust were clarified and mandated by the trust instrument itself. That is where you will find all your information. Once the annual distributions were made to your mother, those distributions were out of the control of the trust and in the control of your mother.

If you are saying that you wanted to see the recordkeeping, if any, by the trustee of the Q-Tip, the answer would lie in the review of the trust agreement by a legal advisor to see exactly what rights your father gave to you, as beneficiaries. That is a recommended step; hopefully, you have access to the trust agreement, or, as beneficiary, you can consult with counsel about securing a copy if it is not shared with you by the trustee.

If you worried about funds going where they should not have been distributed, then the Q-Tip trust did exactly what your father wanted. It only permitted distributions to your mother; however, it could not tell your mother what to do with her annual distributions as that was out of the scope of that trust.

Your question makes it evident that you are worried about those annual distributions; an appointment with your legal adviser should help. A reading of that trust agreement is essential by you and/or your adviser.

I'm glad to have researched this issue for you. Your father was a very wise man!

 

Balanor

 

Brad, Retired IRS Agent
Category: Tax
Satisfied Customers: 177
Experience: Retired; 32 years service and expertise in Individual, Partnership, Trust, Corporate Tax Law;Mensa
Brad and 4 other Tax Specialists are ready to help you
Customer: replied 6 years ago.
thank u for your help my mother has passes now and he 5 daughters are beneficiaries my brother being executor when should he distribute a copy of thye will??
Expert:  Brad replied 6 years ago.

Hello Ms.Customer

As executor, he probably has a power of attorney which places him in legal charge of everything; you can always ask him for a copy.

I also lost my father recently and my brother was executor...he keeps us very informed and shares any documents that we wanted have. I do know that he was stressed and very busy in trying to wrap things up; that may be the case with your brother...he's trying to get all the legal and financial things cleared up as well as grieving for his father.

I am glad that I could be of help....it is not an easy time for you or me.

Balanor

Customer: replied 6 years ago.
thank you for anserring my questions ..death is never easy on a family especially one as large as mine..my dad pases 6 yes ago from lung cance now we watched my mom from the same .it s like a nightmere can you imah=gine 5 girls in a room together dear god it s such a power,,but somme how u get by .thanks again
Expert:  Brad replied 6 years ago.

HiCustomer

We are traveling the same road right now and it leaves an unfillable emptiness in you that isn't easily overcome. Dad was 91, but that only meant we had many more years of memories. I know lung cancer...my brother-in-law passed from it on his 50th birthday; it's a rough time, but all the suffering and discomfort of our parents has been removed from them....at least there is peace for them.

Balanor

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