The ABCs of Estate Planning: Q is for QTIP
Q is for “QTIP” or QUALIFIED TERMINABLE INTEREST PROPERTY. Estate planners love their acronyms. QTIP is an election made by the Personal Representative (Executor/Executrix) to have assets that are left to a spouse for his/her/their life but have to pass to designated third parties at the spouse’s death. This is useful in tax planning, as these assets are usually excluded from a person’s estate for tax purposes if it “terminates” at their death.