Important events over the course of your life may also necessitate changes and revisions to your existing estate plan. The Qualified Terminable Interest Property (QTIP) Trust was a creation of ERTA-1981 pursuant to IRC § 2056 (b) (7) which qualifies for the marital deduction, even if the surviving spouse is not given a general power of appointment during life or at death. First, for the trust to be recognized and treated as a QTIP trust the grantor must be a U.S. citizen. QTIP Trust Requirements A QTIP trust operates in basically the same way as any other trust with some special terms designed to provide for your spouse while protecting your children’s inheritance. A QTIP trust (officially a qualified terminable interest property trust) is a type of trust that allows someone to provide income for their surviving spouse and bequeath property and assets to a different set of beneficiaries. Creating a successful estate plan often requires you to make use of a wide range of inter-related estate planning tools and documents. The QTIP trust also minimizes the decedent’s estate tax, because the trust assets inherited by the spouse are generally not taxed (this is known as the marital deduction). You will need to appoint a Trustee to oversee the … The Lifetime QTIP Trust must be created for the benefit of a spouse who is a U.S. citizen – there is … The marital deduction rule allows for deferrence of estate taxes, to death taxes on outright transfers of wealth and estate assets between spouses. The trust income can be paid for the benefit of the spouse (by paying bills directly, for example), but … QTIP Trust Requirements. The Qualified Terminable Interest Property (QTIP) Trust was a creation of ERTA-1981 pursuant to IRC § 2056 (b) (7) which qualifies for the marital deduction, even if the surviving spouse is not given a general power of appointment during life or at death. QTIP Trust Requirements.
He or she must be married as well, and the couple must qualify for the marital deduction rule.