Qualified Terminable Interest Property Trust
About Qualified Terminable Interest Property Trust:
A Qualified Terminable Interest Property (QTIP) Trust is a trust that allows assets to be transferred between spouses. The grantor of a QTIP trust directs income from the assets upon the death of the spouse. The QTIP for which a marital deduction was previously allowed is included in the estate of the surviving spouse if the qualifying income interest is retained by the spouse until death. The QTIP is therefore not subject to estate tax until the death of the surviving spouse. Former IRC (check if this IRC provision is current here) §2056(b)(7) and 2523(f).
See Inheritance Tax and Inheritance Tax.
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