Legal Question in Wills and Trusts in Michigan
Income from unfunded Qtip
I am the beneficiary of a trust. My husband died almost a year ago. The trust is supposed to be split into several trusts, one of which is for my benefit. 25% of the property in the trust will be put into a Qtip trust, of which I am the sole benificiary. The trustee is waiting for a while to fund the trust. Here is my question: I am entitled to the income generated by the Qtip trust property while I am alive. Does the trustee have to pay me income before he funds the Qtip? I understand that that is one of the requirements of a Qtip (that I get all of the income at least every year for life). If I do not receive income for more than a year, does that have adverse tax consequences?
1 Answer from Attorneys
Re: Income from unfunded Qtip
A lawyer would have to see the trust document before giving you the answer on this. Find an experienced probate lawyer in your area. Bill Stern 248-353-9400