What is a QTIP trust?

A QTIP trust, short for qualified terminable interest property trust, provides income to a surviving spouse for life while letting you control who ultimately inherits the assets. It's especially popular in blended families, where you want to support your current spouse but make sure your children from a prior marriage eventually receive the property. It also qualifies for the marital deduction, deferring estate tax until the second spouse dies. An attorney can set it up to fit your situation.