Qualified Terminable Interest Property (QTIP) Trust

Primary tabs


A trust that qualifies for the marital deduction. A qualified terminable interest property trust ("QTIP trust") allows a spouse to give a life estate in property to his or her spouse without incurring the federal gift tax. The donee (recipient) spouse has an income interest in the trust and does not have a power of appointment over the principal. Upon the donor spouse's death, the principal is included in his or her estate for estate tax purposes. 

Illustrative caselaw

See, e.g. Wells Fargo Bank New Mexico, N.A. v. United States, 319 F.3d 1222 (10th Cir. 2003).

See also