Another estate planning device by which the financial needs of a surviving spouse can be assured is the Qualified Terminable Interest Property (QTIP) trust. In a QTIP trust, a surviving spouse is given a qualifying life-income interest in property, but without a general power of appointment attached to that property. (A life-income interest means what it says — an interest, while alive, in the income produced by the trust.)

Federal tax law allows this type of arrangement to qualify for the marital deduction. A QTIP trust is an important estate-planning tool that lends its strength for non-tax estate-planning goals. Do not consider a QTIP trust as a tax savings device; instead, a QTIP trust offers control as its main advantage.

Back to Top | Next

Ohio National is not affiliated with, nor does it endorse or sponsor, any particular prospecting, marketing or selling system.

96