Define: Qtip Trust

A QTIP trust, or Qualified Terminable Interest Property trust, is a type of trust that allows a grantor to provide for a surviving spouse while still maintaining control over how the trust assets are distributed after the spouse’s death.

In a QTIP trust, the grantor transfers assets into the trust, and the surviving spouse receives income from the trust during their lifetime. Upon the spouse’s death, the remaining assets in the trust are distributed according to the grantor’s instructions.

A QTIP trust can provide for a surviving spouse while also ensuring that the grantor’s intended beneficiaries receive the trust assets after the spouse’s death. It can also provide tax benefits and asset protection.

Any individual or couple can create a QTIP trust as part of their estate planning strategy.

In most cases, a QTIP trust cannot be modified or revoked once it is established. However, there may be some limited circumstances in which the trust can be modified or terminated.

Assets in a QTIP trust are generally not subject to estate tax upon the death of the grantor or the surviving spouse. However, the assets may be subject to other taxes, such as income tax.

Yes, a QTIP trust can be structured to provide for a surviving spouse while also ensuring that the grantor’s children from a previous marriage receive the trust assets after the spouse’s death.

A QTIP trust is a type of marital trust that provides for a surviving spouse while also allowing the grantor to control the distribution of the trust assets after the spouse’s death.

There may be limitations on the types of assets that can be placed in a QTIP trust, so it is important to consult with a legal or financial advisor when establishing the trust.

To set up a QTIP trust, you will need to work with an experienced estate planning attorney who can help you draft the necessary legal documents and ensure that the trust is structured to meet your specific needs and goals.