Dictionary of Exit Planning Terms

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Qualified Terminable Interest Property (QTIP)

A type of trust that enables the grantor to provide for a surviving spouse and also maintain control of how the trusts assets are distributed once the surviving spouse has also died. In the case of a home contributed to a QTIP, the surviving spouse would have the ability to live in the house for life. In the case of income generating assets, the surviving spouse would be given income, and sometimes principal, during their lifetime. Minority interests in a business can also be granted to a QTIP. this type of trust is commonly used by individuals who have children from another marriage.