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Qualified Terminable Interest
Property Trusts “QTIP Trusts”
can be either a living or a testamentary trust, this is a type of Marital Trust for use when a second spouse is involved. The Grantor transfers property into the trust for the benefit of the surviving spouse, estate tax free by virtue of the unlimited marital deduction, but also includes the Grantor’s children (including those from previous marriage) as remainder beneficiaries. This way, the Grantor ensures that the property is ultimately distributed to the Grantor’s children upon the surviving spouse’s death.
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