How Certain Trusts Soften The Blow Of Estate Tax Increases

May 24, 2021

Right now, gifts to trusts can take advantage of high tax exemptions and remove future appreciation of assets from taxable estates. One example available to spouses is making a gift to a trust that allows for a qualified terminable interest property (QTIP) election.

“The real advantage … is that the QTIP election is made on the 2021 gift tax return, which is filed in 2022, and the choice can be made at that time on how much of the transfer will be subject to tax,” added Azriel J. Baer, counsel in the trust and estates group at the law firm Farrell Fritz in Uniondale, N.Y.

Also, Baer said property over which the QTIP election is made will be included in the estate of the surviving spouse.

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  • Related Practice Areas: Trusts & Estates
  • Featured Attorneys: Azriel J. Baer
  • Publications: Financial Advisor Magazine