DIY Legal Forms

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Simple Qualified Terminable Interest Property Trust

(QTIP Trust Will Provision}

1. Creation of Trust. All the rest, residue, and remainder of my property, of whatever nature and wheresoever situated, I give, devise, and bequeath to my Trustee hereinafter named, in trust, to be administered as hereinafter provided.

2. Distribution of Income During Surviving Spouse's Life. I direct my Trustee to pay the net income of the Trust in annual or more frequent installments to my Spouse during my Spouse's life, if my Spouse survives me. In addition, my Trustee is authorized to pay to my Spouse, or apply for my Spouse's benefit, such amount or amounts of the principal of this Trust, including the entire amount thereof, at any time that my Trustee, in Trustee's sole and absolute discretion deems it advisable for my Spouse's maintenance, support, comfort, or welfare. Neither my Trustee nor my Spouse may invade the principal of this Trust during my Spouse's life for the benefit of any person other than my Spouse.

3. Distribution of Income Upon Surviving Spouse's Death. Upon my Spouse's death, if my Spouse survives me, I direct my Trustee to distribute any accrued or undistributed trust income to my Spouse's estate.

4. Distribution of Principal of Trust to Surviving Spouse's Estate for Payment of Taxes. Upon my Spouse's death, I direct my Trustee to distribute to my Spouse's estate from the qualified terminable interest share of this Trust a sum equal to the estate and death taxes attributable to the principal of such share. For the purpose hereof, the estate and death taxes attributable to such share shall be the difference between (i) the taxes paid by my Spouse's estate and (ii) the taxes that would have been paid if the principal of such share had not been includable in my Spouse's taxable estate.

5. Distribution of Principal Upon Surviving Spouse's Death. Upon my Spouse's death, or as soon thereafter as is practical, I direct my Trustee to distribute the principal of the Trust and any income accrued thereon to the following persons, per stirpes: [names]. My Trustee is directed to retain any share that will pass to a person who has not attained the age of [number] years, in a separate trust, to be administered as hereinafter provided.

6. QTIP Election. I authorize my Executor to elect that all or a fraction of this Trust qualifies for the federal estate tax marital deduction as qualified terminable interest property pursuant to Section 2056(b)(7) of the Internal Revenue Code of 1986. Without attempting to limit my Executor's discretion, I anticipate that my Executor will elect to qualify the smallest fractional share of the Trust necessary to reduce the federal estate taxes payable on my estate to zero unless my Executor determines that other tax or administrative considerations require a different election. No person may challenge any good faith election made by my Executor pursuant to this provision.

7. Distributions of Principal if Executor Qualifies Only Part of QTIP Trust. If my Executor qualifies only part of the principal of this Trust for the marital deduction as qualified terminable interest property (the qualified terminable interest share), I direct that all invasions of principal for my Spouse's benefit pursuant to Paragraph 2 above be made first from the qualified terminable interest share of the Trust. If my Executor so desires for accounting or administrative purpose, my Executor is authorized to create two separate trusts, one trust consisting of the qualified terminable interest share of this Trust and the other trust of the remainder of the property of this Trust.