A ________ gives the individual establishing the trust the ability to direct income from the trust to his or her spouse over the spouse's life,and then to whomever else the individual wants the funds to go.

Question

Quizplus · Accepted Answer

A Q-TIP (qualified terminable interest property) trust allows the creator of the trust to provide income to their spouse for their lifetime, and then direct the funds to other beneficiaries after the spouse's death. This type of trust is commonly used to provide for a surviving spouse while still maintaining some control over how the assets are ultimately distributed. Sprinkling trusts and family trusts may offer some similar benefits, but do not specifically allow for income to be directed to the spouse in the same way as a Q-TIP trust. A living trust is a more general term that can refer to a variety of trusts that are established during the creator's lifetime.

A ________ Gives the Individual Establishing the Trust the Ability