QTIP Trusts

Qualified Terminable Interest Property trust (QTIP) trust also known as the "C" trust is one in which the grantor, first-to-die spouse transfers property under the marital deduction at death to the surviving spouse. The surviving spouse becomes an income beneficiary with the property included in the gross estate, while the deceased spouse retains control in disposing the property. The main benefit of the QTIP trust is that it helps the surviving spouse from having to pay estate taxes. Also, the first-to-die spouse retains control of the disposition of the property after transferring to his or her spouse.