Family Office Definition: Qualified Terminable Interest Property Trust
Qualified Terminable Interest Property Trust definition: A qualified terminable interest property trust (QTIP) a type of marital trust that provides lifetime income to a surviving spouse. Income must be distributed at least annually. The surviving spouse has an income benefit, but does not have authority or control over the assets in the trust. The amount left after the surviving spouse dies is given to the grantor’s chosen beneficiaries but not transferred into the surviving spouse’s estate. Estate taxes are postponed until the death of the surviving spouse when trust assets are transferred to beneficiaries. The lifetime income benefit of the surviving spouse qualifies for the marital deduction and is not included in the grantor’s taxable estate.
Download our free Family Office Report to learn more about the family office industry.
Read more Family Office Definitions
Tags: What is qualified terminable interest property trust?, qualified terminable interest property trust definition, qualified terminable interest property trust family office, qualified terminable interest property trust term, define qualified terminable interest property trust, qualified terminable interest property trust wealth management, qualified terminable interest property trust multi-family office, qualified terminable interest property trust single family office
