QTIP trust
Certified Financial Planner glossary · Certified Financial Planner
Definition
A trust qualifying for the marital deduction by election while directing the ultimate remainder; includible in the survivor’s estate under Section 2044.
QTIP trust in plain English
A client wants the marital deduction today but also wants to name who gets the remainder after the surviving spouse dies. A QTIP trust qualifies for the marital deduction by election while still directing that ultimate remainder, and the property is includible in the survivor's estate under Section 2044. Capture the job: marital deduction by election, remainder control retained, inclusion later under 2044. Do not confuse it with an outright bequest that gives the survivor full ownership and free disposition.
Related Certified Financial Planner terms
Certified Financial Planner practice questions · Certified Financial Planner flashcards · Certified Financial Planner study guide