QTIP Trust

It can be a real effective tool in that environment.

So what is a QTIP trust? Well, QTIP stands for Qualified Terminal Interest Property, and that's just a fancy way of saying that this type of trust actually qualifies for a marital deduction on estate taxes when the creator of this trust passes away.

So just fancy language that really is indicative of the marital deduction application that happens when a person passes away and this kind of trust is in existence for the surviving spouse.

This trust is an irrevocable trust that allows the surviving spouse to receive all the income generated from the trust and then also allows the surviving spouse to receive principal if the trust provides.