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QTIP? An Estate Planning tool? YES – this one does more than just clean your ears!

February 7, 2012


What is a QTIP Trust?

A Qualified Terminable Interest Property (QTIP) Trust is a type of Trust 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.  Estate taxes are deferred until the surviving spouse dies and the final Trust beneficiaries receive the Trust property.  In a Revocable Living Trust plan, a QTIP Trust is often established at the death of the first spouse and it frequently referred to as the “C” Trust.

The Trust is designed so that all assets in the Trust qualify for the unlimited marital deduction, as would outright gifts to a spouse.  Thus, the Trust avoids estate taxes upon the death of the first spouse.  The real advantage of the Trust is the ability to have an independent Trustee control and manage the assets for your surviving spouse, and the ability to determine the contingent beneficiaries who are usually the children.  Additionally, the QTIP Trust gives you both the opportunity to ensure that your children inherit their wealth while at the same time providing for the financial security of your surviving spouse.

To Learn more about the QTIP Trust… email us at or visit us online at

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