Marital Deduction / QTIP Provisions

What is it?

The unlimited marital deduction allows assets to pass to a surviving spouse tax-free. QTIP (Qualified Terminable Interest Property) trusts provide income to the surviving spouse while controlling ultimate distribution.

Why is it important?

For married couples, proper use of the marital deduction can defer all estate taxes until the second spouse dies. QTIP trusts are especially important in blended families to provide for a spouse while ensuring children from prior marriages ultimately inherit.

Example Language

Assets passing to the Marital Trust shall qualify for the federal estate tax marital deduction. The Trustee shall distribute all net income to the surviving spouse at least annually, and may distribute principal for health, education, maintenance, and support.