What are QTIP trusts and how can they help my estate plan1?
A Qualified Terminable Interest Property (QTIP) trust can be an effective way to provide for your spouse and your children. A QTIP trust provides your spouse with the net income (and possible discretionary distributions of principal) of the trust for his or her lifetime, and further provides that the remaining trust assets are distributed to other beneficiaries (usually children and/or grandchildren) according to your wishes after the death of your spouse. Simply put, a QTIP trust is a valuable planning tool designed to preserve assets for your children’s or grandchildren’s benefit, regardless of how marital or other family situations may change.
