Beneficiary Designation Form: Primary Beneficiary: A QTIP Trust for the Benefit of the Surviving Spouse – with Required Trust Provisions (3 Pages)

This Form designates a QTIP Trust for the surviving spouse as the Plan beneficiary. Due to Rev. Rul 2006-26, there are a number of issues to be addressed here. While the Beneficiary Designation Form itself is relatively simple, naming the QTIP Trust as the Plan beneficiary, there are a number of required provisions that must be included in the QTIP Trust itself to assure that the participant will achieve the desired result with respect to this designation. The provisions that must be incorporated in the QTIP Trust are also a part of this Form. The term “income” must be specifically defined to comply with Rev. Rul. 2006-26. The spouse must have the right to require the trust property to be made “productive”. There must be a requirement for not less than the required minimum distribution to be paid to the trust annually. A QTIP election must be made for both the Plan and the Trust. All of these provisions are included below.

Author:
Steven G. Siegel is president of The Siegel Group, a Morristown, New Jersey - based national consulting firm specializing in tax consulting, estate planning and advising family business owners and entrepreneurs. Mr. Siegel holds a BS from Georgetown University, a JD from Harvard Law School and an LLM in Taxation from New York University.

He is the author of several books, including: Planning for An Aging Population; Business Entities: Start to Finish; Taxation of Divorce and Separation; Income Taxation of Estates and Trusts, Preparing the Audit-Proof Federal Estate Tax Return, Putting It Together: Planning Estates for $5 million and Less, Family Business Succession Planning, Business Acquisitions: Representing Buyers and Sellers in the Sale of a Business; Dynasty Trusts; Planning with Intentionally-Defective Grantor Trusts; The Federal Gift Tax: A Comprehensive Analysis; Charitable Remainder Trusts, Grantor Trust Planning: QPRTs, GRATs and SCINs, The Estate Planning Course, The Retirement Planning Course, Retirement Distributions: Estate and Tax Planning Strategies; The Estate Administration Course, Tax Strategies for Closely-Held Businesses, and Tort Litigation Settlements: Tax and Financial Issues.

Mr. Siegel has lectured extensively throughout the United States on tax, business and estate planning topics on behalf of numerous organizations, including National Law Foundation, AICPA, CCH, National Tax Institute, National Society of Accountants, and many others.  He has served as an adjunct professor of law at Seton Hall and Rutgers University law schools.

The Siegel Group provides consulting services to accountants, attorneys, financial planners and life insurance professionals to assist them with the tax, estate and business planning and compliance issues confronting their clients. Based in Morristown, New Jersey, the Group has provided services throughout the United States. The Siegel Group does not sell any products. It is an entirely fee-based organization.
Contact the Siegel Group through its president, Steven G. Siegel, e-mail: [email protected].