---
title: Q-Tip Trusts
---

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# Q-Tip Trusts

 QUALIFIED TERMINABLE INTEREST PLAN (Q-TIP) TRUSTS (Providing for Intended Beneficiaries)

A Q-TIP Trust can be used to ensure that the appropriate beneficiaries obtain the assets from an estate.  A married individual can provide income for his or her spouse for life and require that the remaining property, or the principal, will be distributed to his or her children (or other desired beneficiaries).

 

A Q-TIP Trust can be used to prevent the assets from being left to a new spouse if your spouse remarries after your death.  It will also prevent your spouse from leaving the assets to children that he or she may have from prior relationships.  Surviving spouses tend to favor their biological children in many cases, and this situation often results in litigation.

 

**Example 1**: John and Jane are married.  John has a daughter from a prior marriage and Jane has a son from a prior marriage.  John dies before Jane and John leaves everything to his wife Jane.  It is possible that when Jane dies, her son will receive all of the money from John’s estate as well as her own.  Therefore, John’s biological daughter may receive nothing.

 

**Example 2:** John and Jane are married.  John has a daughter from a prior marriage and Jane has a son from a prior marriage.  John and Jane both decide to use Q-TIP Trusts.  John dies before Jane, but Jane is left with a stream of income during her life.  Jane’s entire estate could be left to her biological son.  However, when Jane dies, the money from John’s estate (which was invested and provided Jane with income during her life) will be left to John’s daughter.

 

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