Tax Planning With QTIP Trust Assets

It’s estimated that individuals over 55 years old collectively hold over $122 trillion in wealth, which equates to over 73% of the wealth in the United States. Of that $122 trillion, approximately $53 trillion (or about 31% of the total wealth) is held by individuals aged 70 or older.¹ With trillions of dollars passing to younger generations each year, we’re amid what experts have dubbed the “Great Wealth Transfer.” By 2048, an estimated $105 trillion will have been transferred to younger generations through inheritances.² A substantial portion of this wealth will pass to younger generations via qualified terminable interest property (QTIP) trusts. While QTIP trusts defer estate taxes until the death of the surviving spouse, the trust as…