Legal Question in Wills and Trusts in Michigan

Do I have to wait for the estate tax return to be filed before my QTIP is funded

My husband died recently. He had a trust. The provisions of the trust provide that I am to receive a portion of the trust. That portion will be placed in another trust, which I am told is called a QTIP. I was also told that the property that goes into the QTIP is exempt from estate tax because of the marriage deduction. But the trustee is refusing to fund my QTIP until the estate tax return is approved. I told him that he should fund now because my share is not subject to estate taxes. Is there any authority for what he is doing?


Asked on 9/30/03, 9:51 am

1 Answer from Attorneys
Patricia Prince Patricia Gormely Prince, P.C.

Re: Do I have to wait for the estate tax return to be filed before my QTIP is fu

The Trustee is acting properly. It is not prudent to fund the Marital Trust until the Estate Tax Return is approved. This is because the value of the assets in the Estate could change during the Estate Tax Audit. Therefore, the Trustee needs to wait until the tax value of all Estate Assets is determined to know how much needs to be funded in the Marital Trust.

Read more
Answered on 10/03/03, 2:31 pm


Related Questions & Answers

More Probate, Trusts, Wills & Estates questions and answers in Michigan