A special trust designed for the benefit of a surviving spouse under the requirements of the Internal Revenue Code that permit the assets transferred to that trust to escape death taxes on the death of the first spouse to die.
a form of marital deduction and is designed to qualify for the unlimited estate tax marital deduction
a similar irrevocable trust, except that estate tax is levied when the trust is paid out rather than when it is created and funded
A marital trust with property left for use of the surviving spouse as life beneficiary. No estate taxes are assessed on the trust property until the death of the life beneficiary spouse.
Often used in second marriages where children are involved, a QTIP trust allows the creator of the trust to determine where his or her assets will ultimately go after the second spouse dies.
Although most limited, or terminable interests in property (such as life estates), do not qualify for the marital deduction in 1981 laws were enacted to allow an elective marital deduction for such interests if all of the income were payable to the surviving spouse during the survivor's lifetime. This type of property is known as "Qualified Terminable Interest Property" (QTIP), and a trust holding this property is known as a "QTIP" trust.
A marital trust for wealthy couples designed to reduce estate taxes. The surviving spouse receives only a “life estate†in the trust property, which passes to the trust’s final beneficiaries after the surviving spouse’s death. No estate taxes are assessed on the trust property until the surviving spouse dies.
A trust established to receive and administer qualified terminable interest property for the benefit of a surviving spouse.
A Qualified Terminable Interest Property Trust which utilizes the marital deduction, yet enables the decedent or donor spouse to control the ultimate distribution of trust principal. The surviving spouse must be given all the income from the trust for the duration of their life. An election to use the marital deduction must be made on the 706 federal estate tax return of the decedent.
A trust under which you give your spouse life income and you choose who will receive the property in the trust after your spouse's death -- your children or grandchildren, for instance.
Often used in second marriages, a Qualified Terminable Interest Property (QTIP) trust allows you to provide income for a surviving spouse for life, yet ensures that the trust's assets will later pass to the people you have specified (such as your children), rather than your surviving spouse's heirs (such as your spouse's children or other relatives).
A type of trust for wealthy married couples that allows a surviving spouse to postpone estate taxes. A QTIP trust allows the surviving spouse to make use of the trust property tax-free. Taxes are deferred until the surviving spouse dies and the trust property is received by the final trust beneficiaries, who were named by the first spouse to die.
A Trust designed to permit a spouse to transfer assets to his or her Trust while still maintaining control over the ultimate disposition of those assets at the spouse's death. QTIP Trusts are particularly popular in situations where a person is married for a second time but has children from a first marriage for whom he or she wants to reserve assets.
