Q-TIP Trust

Short for qualified terminal interest property trust, a Q-TIP Trust is created through a will and allows some or all of the estate to be left for the benefit of the surviving spouse. The will spells out precisely who will receive or benefit from the trust assets upon the surviving spouse’s death. The Q-TIP Trust allows the will maker to ensure that his or her children or stepchildren will benefit from the trust assets when the spouse dies because the surviving spouse is prevented from making changes to the will, such as cutting beneficiaries out of the will or reducing beneficiaries’ proceeds.