QTIP

Question 1

Describe a QTIP trust. What is it also known as and can it be a simple or complex trust

Answer 1

Provides income to the surviving spouse, but allows the property to also qualify for the marital deduction

A.k.a. C Trust

Can only be a SIMPLE trust

Question 2

If it descendent sets up a QTIP trust, can the income also be used for children or other people chosen?

Answer 2

Can ONLY be used for spouse

Question 3

At the death of the surviving spouse, what happens to the property in the trust?

Answer 3

Would be included in the gross estate of their surviving spouse

Question 4

What are the income payment requirements to the spouse?

Answer 4

LAME

Lifetime income interest for the spouse
Annual payments to the spouse
Mandatory payments to the spouse
Exclusively for the benefit of the spouse