What is a qualified terminable interest property trust?

A qualified terminable interest property trust (QTIP) is an estate planning tool commonly used in Michigan. It is a trust that allows a person to protect their assets from the taxes of their estate. By designating assets in a QTIP, the surviving spouse is entitled to receive income from the trust while the remainder goes to other beneficiaries. In Michigan, a QTIP trust provides several benefits for an individual. Firstly, it allows assets to pass to a surviving spouse free of unnecessary income taxes and estate taxes. Secondly, it allows a person to determine who will receive the assets of the trust after the surviving spouse dies. Finally, it allows an individual to maintain control of the assets in the trust throughout their life. Overall, QTIP trusts are powerful estate planning tools that provide the advantage of avoiding probate, while allowing an individual to protect their assets from taxes and to determine the ultimate beneficiaries of the trust. QTIP trusts are a great option for those who have complex estates or who wish to provide for the future of their surviving spouse and other beneficiaries.

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