Throughout Southern California
View Our Practice Areas

Parents of blended families may consider creating a QTIP trust

Many families today include children from more than one marriage. Unfortunately, very few parents of blended families anticipate the inheritance challenges that can arise after they pass away.

For example, if a father passes away and leaves all his assets to his second wife, he may intend for his estate to provide for her throughout her lifetime with the remaining money to be distributed among his and her children. However, when the second wife dies, all her assets, which include those she received from her husband, may end up with only her children, and the children from the man’s first marriage may end up with nothing.

Benefits of a QTIP trust

To prevent this from happening, those with blended families might consider setting up a qualified terminable interest property (QTIP) trust. With a QTIP trust, you can provide for your surviving spouse for the duration of that person’s lifetime. Because this is the main function of the trust, it qualifies for the marital deduction.

When your surviving spouse passes away, the assets in the trust are taxed as part of his or her estate. However, the leftover principle assets in the trust will be distributed based on the terms of the trust, which you determined when you set it up.

Your surviving spouse cannot change the beneficiaries after you die and cannot sell or give away the property he or she receives. This means that with a QTIP trust you can name your children as the ultimate beneficiaries without having to worry if your children from a previous marriage will end up disinherited.

Estate planning can be complicated if you have a blended family. A QTIP trust may be one option to help you juggle the interests of your spouse as well as children from a previous marriage.

No Comments

Leave a comment
Comment Information
Email Us For A Response

Find Out The Difference That Experience And Expertise Makes

Get the peace of mind that you deserve. First, attend a seminar. This will entitle you to a free initial consultation and a discounted estate planning fee. To learn more about our services or sign up for a seminar, contact us online or call us at 866-402-1805. We have offices in Torrance, Orange, Newport Beach, Pasadena and Woodland Hills.

Questions? Contact Us.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Call Now For A Free Consultation: 866-402-1805
  • ${site.data.firmName}${SEMFirmNameAlt}
  • Main Office: Torrance

    Torrance Office
    990 West 190th Street
    Suite 500
    Torrance, CA 90502

    Toll Free: 866-402-1805
    Map & Directions

    Orange Office
    333 City Boulevard West
    17th Floor
    Orange, CA 92660

    Toll Free: 866-402-1805
    Map & Directions

    Newport Beach Office
    5000 Birch Street
    Suite 8000
    Newport Beach, CA 92660

    Toll Free: 866-402-1805
    Map & Directions

    Pasadena Office
    790 East Colorado Boulevard
    9th Floor
    Pasadena, CA 91101

    Toll Free: 866-402-1805
    Map & Directions

    Woodland Hills Office
    5850 Canoga Avenue
    4th Floor
    Woodland Hills, CA 91367

    Toll Free: 866-402-1805
    Map & Directions

    Office map
Check out The Law Firm of Kavesh, Minor & Otis on Yelp
Check out Kavesh Minor & Otis on Yelp
Check out The Law Firm of Kavesh, Minor & Otis - Orange on Yelp
Check out The Law Firm of Kavesh Minor & Otis - Pasadena on Yelp