Contents
What a QTIP Trust is (Qualified Terminal Interest Trust)
Purpose
QTIPs are use to qualify for the marital deduction, but still maintain control over the ultimate distribution of the trust assets.
Uses
QTIPs are often used for estates that include a closely-held business that the client wants to control to whom it goes after the surviving spouse's death.
Sales
Offers a method to take advantage of the marital deduction, but still allows the client to control the ultimate distribution.
Transitional Uses
Limits are of a legal nature that do not affect the uses of this technique for estate tax purposes.
Appeal
This is a particularly popular technique when second marriages are involved.