What is the QTIP trust?
QTIP trust stands for the qualified terminable interest property trust. It allows certain property to qualify for an estate and gift tax marital deduction even though it ordinarily would not qualify for such tax deductions. One type of QTIP property that can qualify for a marital tax deduction are trusts which provides income to a surviving spouse for life and after the spouse dies the remainder goes to the children. Please contact an attorney if you would like more information about this type of trust.
A QTIP is a Trust that is established to qualify for the marital deduction. QTIP stands for Qualified Terminable Interest Property. It allows certain property to qualify for an estate and gift tax marital deduction even though ordinarily it would not qualify for such tax deductions. One type of QTIP property that can qualify for a marital tax deduction are trusts providing income to a surviving spouse for life and, after the spouse dies, the remainder will to the children. Question: What is a Trust? A trust is a fictitious legal entity which owns assets for the benefit of a third person (beneficiary). The Grantor (or settlor) of the Trust is the person who set up and gave money to the Trust. The Trustee of the Trust is the person charged with keeping the assets safe, invested properly, and finally distributed to the Beneficiary at the proper time. The Grantor can decide how the money must be kept (in interest bearing accounts, in real estate, or only in government insured FDIC accounts
