A QTIP trust (short for “qualified terminable interest property” trust) is a type of trust that is often used in estate planning to provide income and support to a surviving spouse while also ensuring that the trust assets will eventually pass to the trust creator’s chosen beneficiaries.

Here’s how a QTIP trust works: The trust creator (also known as the grantor) transfers assets into the trust and names their spouse as the trust beneficiary. The spouse is entitled to receive income from the trust assets and may also have the right to use the trust assets for their support and maintenance. However, the spouse does not have the right to distribute the trust assets to anyone else or change the terms of the trust.

Upon the death of the surviving spouse, the trust assets will be distributed to the trust creator’s chosen beneficiaries, as specified in the trust agreement. This allows the trust creator to provide for their spouse during their lifetime, while also ensuring that the trust assets will be passed on to their intended beneficiaries.

A QTIP trust can be a useful estate planning tool for individuals who want to provide for their spouse while also ensuring that their assets will be distributed according to their wishes. It is important to note that QTIP trusts can be complex and may not be appropriate for everyone. It is a good idea to consult with an estate planning attorney to determine if a QTIP trust is right for your situation.