What does the Q in Q-tip stand for?
Here are two opinions: * Quilted-Tip * Quality, actually. :) And an extra note: * Take a careful look at the capital letter 'Q'. Doesn't it slightly resemble placing a small swab into the outer ear? This, as you know, is the only safe way to use a Q-tip. Happy Swabbing!
Tax is assessed on a QTIP trust upon the death of the second spouse. If the total estate of the second spouse (including the QTIP trust) does not exceed the exemption amount in effect at the time, then no tax will be paid. To the extent that the addition of the QTIP to the second spouse's estate causes tax liability, that liability should be paid by the beneficiaries of the QTIP trust.
I'm sure many learned accountants and attorneys can find fault with this answer, but it is going to be too long even with this simplified version. What is a QTIP: To understand a Reverse QTIP, you must first know what a QTIP is. A QTIP trust is a Qualified Terminable Interest Property trust. This refers to the ability to give (either during life or at death) assets to your spouse in trust and not be…
It can represent anything that you want - provided that you define it as such. Here are some examples: Algebra: it could represent a typical element in the set of rational numbers. Geometry: In the Cartesian plane (or space), it could represent the ordinate (second coordinate) of a point. Probability: It could represent the probability of the complement of a given event - particularly for the binomial distribution.