Qualified terminable interest property trust, which allows assets to be transferred between spouses. The grantor of a Q-tip trust directs income from the assets to his or her spouse for life but has the power to distribute the assets upon the death of the spouse. Such trusts qualify the grantor for the unlimited marital deduction if the spouse should die first.
A Q-tip trust is often used to provide for the welfare of a spouse while keeping the assets out of the estate of another (such as a future marriage partner) if the grantor dies first.




