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Why use a QTIP trust?

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There are several reasons for using a QTIP trust. 1 Control Issue Eliminated. Where the estate owner wants to control where the trust corpus is to be distributed, when the surviving spouse dies, he or she can do so with a QTIP trust. If the surviving spouse remarries, he or she will receive lifetime income, but will have no control over the trust corpus upon death. By using a QTIP trust, the estate owner insures that his or her share of property and any separately owned property will not be diverted to beneficiaries who are not intended heirs. Thus, the surviving spouse enjoys the income from the property during her life, but does not control disposition of the trust property itself (other than the income). The creator of the QTIP trust specifies the residual beneficiaries, but does not jeopardize use of the marital deduction. If the surviving spouse later remarries, her children cannot be disinherited under the QTIP trust. 2 Power to invade may be given to trustee or others. In ... more
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