What is a Qtip Trust

Despite what the name may seem to imply, a Qtip trust is not something you stick in your ear. It is a form of marital deduction trust often used by couples who may have children from previous marriages. A Qtip trust can avoid estate taxes while providing income for a surviving spouse for his or her lifetime. At the death of the surviving spouse the assets remaining in the trust will pass to the children of the creator of the trust.