Qualified Terminable Interest Property Trust

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Qualified Terminable Interest Property Trust (Q-TIP)

A trust that allows a surviving spouse to receive income generated from the trust, while the actual distribution of the trust's assets is made to other beneficiaries such as the grantor's children.

Qualified Terminable Interest Property Trust

A trust into which the trustor deposits funds and other assets to provide for a surviving spouse while also maintaining control of what happens to those assets after the surviving spouse dies. In a Q-TIP, the trustor names his/her surviving spouse as beneficiary and provides that income and/or principal from the trust shall pass to that spouse upon the trustor's death. However, when the surviving spouse also dies, what remains in the trust is distributed to heirs as if it had been a part of the trustor's estate. A Q-TIP is a common trust when a person has children from a previous marriage; that Q-TIP provides for the surviving spouse but later is transferred to children from one's first marriage to ensure that the estate takes care of them as well.
References in periodicals archive ?
net and hosts a show called QTips on YouTube, which educates viewers on local Arabic customs.
Developments in the areas of gift, estate, and generation-skipping transfer (GST) tax provide insight on gift and estate valuations, basis of inherited property, and inclusion of QTIPs in an estate, among other topics.
Estate Planning, supra note 21, at A-58 to A-62 (explaining QTIPs and their requirements; warning of the dangers associated with the estate making a QTIP election that was not necessary to reduce estate tax liability and the corresponding possible relief available for a surviving spouse under Rev.
Pennell, 843-2nd Estates Gifts, and Trusts Portfolios, Estate Tax Marital Deduction (Tax Management 2007), A-83 to A-84, for a discussion of formula elections and examples which can be adapted for Illinois QTIPs.
A review of extrinsic evidence, correspondence between the decedent and his attorney and the succession of earlier wills indicated Charles was knowledgeable about estate tax laws, had created and revoked QTIPs under earlier wills, had not wished to relinquish control of assets to minimize estate taxes and was aware of the value of his estate after taxes as structured in the 1993 will.
Back in the 1970s he sang with various groups, including Kat Kool & The Kool Kats and the better known QTips, who he played more than 700 gigs with.
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Although gift and generation-skipping taxes, QTIPs and late filings are among the most common liability risks to CPAs, there are many other subtleties to estate tax law.
Examples where testamentary trusts are used with S corporations are QTIPs and Unified Credit Trusts.
6) QTIPs and B trusts may be more suitable as beneficiaries of non-IRA or non-retirement assets.
New features include IRC Chapter 14 -- Special Valuation Rules and its effect on value freezing as well as a new marital deduction chapter detailing the latest developments affecting QTIPS.
25) IRS Letter Ruling 9925027 (3/25/99); see Easton, "Recent Developments in QPRTs and QTIPs," 31 The Tax Adviser 416 (June 2000).