As used in this subchapter:
(1) “Property” means an interest in any type of property that is:
(A) Held in a qualified spousal trust;
(B) Income earned from property held in a qualified spousal trust; and
(C) Property into which the interest, proceeds, or income earned from property held in a qualified spousal trust may be converted; and
(2) “Qualified spousal trust” means a trust that:
(A) At the time of its creation has two (2) settlors who are married to each other; and
(B) Includes terms requiring that during the joint lives of the settlors, all property transferred to or held by the trustee shall be held and administered:
(i) In one (1) trust for the benefit of both settlors and allows:
(a) The trust to be revoked by either settlor or both settlors while either or both of the settlors are alive; and
(b) Each settlor the right to receive distributions of income or principal, whether mandatory or within the discretion of the trustee, from the entire trust for the joint lives of the settlors and for the life of the survivor;
(ii) In two (2) separate shares of one (1) trust for the benefit of each settlor and allows:
(a) A settlor to revoke his or her separate share of the trust without the participation or consent of the other settlor; and
(b) Each settlor to have the right to receive distributions of income or principal, whether mandatory or within the discretion of the trustee, from the separate share of the settlor or for the life of the settlor; or
(iii) Under the terms and conditions provided under subdivisions (2)(B)(i) and (2)(B)(ii) of this section.