Qualified Terminal Interest Property Trust (QTIP)

Glossary

Qualified Terminal Interest Property Trust (QTIP)

An irrevocable trust used in estate planning to provide lifetime income to a surviving spouse; upon their death, the remaining assets are distributed in accordance with the wishes of the spouse who had created the trust. QTIP  assets qualify for the federal estate tax marital deduction and are thus commonly used by people with children from a prior marriage who want to provide income to their current spouse while still ensuring that remaining assets pass to their children from their prior marriage. See Estate Planning

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