Raleigh Advanced Family Trust Attorney

Credit Shelter and QTIP Marital Trust Planning for Married Couples 

Our standard Family Trust works beautifully for most couples. When a couple's combined estate approaches or exceeds the federal exclusion, the trust has to do more: it has to use the first spouse's exclusion and generation-skipping exemption, defer tax on the rest, and leave the survivor flexibility to adapt. The Advanced Family Trust is built for that.

How it works

During your joint lifetimes, it works exactly like our standard trust: you manage your assets, you can change anything, and nothing is taxed.

At the first death, the trust divides. The deceased spouse's share goes into a credit shelter trust (the Family Trust) up to the amount the exclusion can shelter, and the balance goes into a marital trust (a QTIP trust) that defers tax until the survivor's death.

The surviving spouse benefits from both trusts for life. The Family Trust and all of its growth are never taxed in the survivor's estate. A Clayton election lets an independent trustee decide, up to fifteen months after the first death, how much to shelter and how much to defer, based on the survivor's health and net worth at that time rather than guesses made years earlier.

At the second death, everything passes to your children in separate trusts, with exempt and non-exempt property kept in separate lanes so no generation-skipping exemption is wasted.

What it adds over a standard trust

• A self-adjusting formula that funds the credit shelter trust at exactly the right amount.
• A QTIP marital trust, with provisions for a spouse who is not a U.S. citizen.
• Directions to elect portability and to allocate generation-skipping exemption, so nothing is left on the table.
• Tools to get a stepped-up income tax basis at the survivor's death on assets that would otherwise keep their old basis.
• Retirement account provisions written for the current ten-year payout rules.
• An independent trustee and a trust protector so the plan can be administered and adjusted for decades.

Who should consider it?

• Married couples with combined assets above roughly $10 million, or who expect to reach that level.
• Second marriages where each spouse wants to provide for the survivor but guarantee an inheritance to his or her own children.
• Couples where one spouse is not a U.S. citizen.

How we price advanced planning

Advanced planning is priced case by case. These trusts are significantly more complex than a standard revocable trust or a Medicaid asset protection trust: each one involves tax modeling, valuation, coordination with your CPA and financial advisor, and years of administration that the document has to anticipate. For that reason, they are not on our flat-rate menu. After your consultation, we quote a flat fee for your specific plan, so you still know the full cost before any work begins.

Common questions

We already have a trust with you. Do we need a new one?

If your estate has grown past the level your current trust was designed for, we can amend and restate it rather than start over. Your pour-over wills, powers of attorney, and health care documents usually do not change.

What is a QTIP trust?

A marital trust that pays your spouse all of its income for life and qualifies for the unlimited marital deduction, while you decide where the property goes after your spouse's death. It is the standard tool for deferring estate tax without giving up control of the remainder.

Learn More Today

Schedule a consultation with Kevin Peach. We will tell you plainly whether advanced planning is right for your family and quote a flat fee for your plan. 

Call (919) 759-6353 or contact us to schedule an initial consultation today.

Disclaimer: This page is general information about North Carolina and federal estate planning, not legal advice, and does not create an attorney-client relationship. Exemption amounts are as of 2026 and change annually. Every plan depends on the client's facts, and no result is guaranteed.