QTIP Trust

QTIP Trust definition - business

QTIP Trust

A marital-deduction trust in which the surviving spouse receives income from the trust's assets for life, but the trust's principal is left to someone else, usually children. A QTIP trust controls the eventual beneficiaries, while at the same time taking advantage of the marital deduction and providing an income for the surviving spouse. Also called Qualified Terminable Interest Property Trust.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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