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QTIP Trust: Providing for a Spouse and Heirs

A QTIP trust, short for qualified terminable interest property trust, does two things at once: it supports your surviving spouse for life, and it makes sure that when your spouse dies, whatever is left goes to the people you chose. That combination, care for the spouse plus control over the final heirs, is why it is a cornerstone of blended-family estate planning.

Settled Estate cover: QTIP marital trust explained
By Settled Estate Editorial Team

The Short Answer

The problem a QTIP solves is common in second marriages: you want your spouse taken care of, but you also want your children to inherit in the end, not your spouse’s side of the family. Leaving everything to your spouse outright gives up that control. The QTIP is an irrevocable trust that provides for the spouse but keeps the remainder pointed where you aimed it.

How It Works

  1. When you die, the assets you designate pass into the QTIP trust rather than to your spouse directly.
  2. Your surviving spouse receives all the income the trust produces for the rest of their life, and often access to principal for health or support.
  3. Your spouse cannot change who gets the assets after they die.
  4. When your spouse dies, the remaining assets pass to the final beneficiaries you named, such as your own children.

The trustee administers all of this, so choosing the right trustee matters, especially where the spouse and the final heirs are different people.

Why Blended Families Use It

In a first marriage where everyone shares the same children, leaving assets to a spouse usually works fine, because the children inherit either way. In a blended family it does not: assets left to a second spouse can end up with that spouse’s children or a later partner, and the first spouse’s children can be left out. A QTIP removes that risk. It is the tool that lets you say “take care of my spouse, then take care of my kids.”

The Estate-Tax Angle

A QTIP also qualifies for the unlimited marital deduction, so no estate tax is due when the first spouse dies; the assets are instead counted in the surviving spouse’s estate at the second death. To get that treatment, the executor makes a QTIP election on the estate tax return. Whether that deferral helps depends on the size of the estate and the current exemption, which is a numbers question best run with a tax advisor.

Frequently Asked Questions

What is a QTIP trust?
A QTIP trust (qualified terminable interest property trust) is a marital trust that pays your surviving spouse income for life, and then passes the remaining assets to the beneficiaries you named, not the ones your spouse would choose. It lets you take care of your spouse while keeping control over who eventually inherits, which is why it is a staple of blended-family planning.
How is a QTIP trust different from leaving everything to my spouse?
Leaving assets to your spouse outright means your spouse can later leave them to anyone, including a new partner or their own children. A QTIP supports your spouse for life but locks in the final beneficiaries you chose, such as children from a prior marriage. Both qualify for the estate-tax marital deduction; the QTIP adds control over the second generation.
Who pays estate tax on a QTIP trust?
The QTIP trust defers estate tax to the second death. When the first spouse dies, the executor makes a QTIP election so the assets qualify for the unlimited marital deduction and no estate tax is due then. The trust assets are instead counted in the surviving spouse’s estate at the second death. This can be an advantage or not depending on the size of the estate, which is a question for a tax advisor.
Can a QTIP trust be changed?
While both spouses are alive, the plan can usually be revised as part of updating your estate plan. Once the first spouse dies and the QTIP is funded, it generally becomes irrevocable, and the terms are fixed. That permanence is the point: it guarantees the surviving spouse is provided for and that the assets eventually reach the heirs the first spouse named.

Information current as of July 16, 2026

Settled Estate is not a law firm, and this content is for informational purposes only and does not constitute legal advice. Probate laws and procedures in your state can change. Consult with a qualified attorney for advice specific to your situation. Full disclaimer.