To avoid the terminable interest limitation on the marital deduction, a QTIP election must be made.

Question

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A QTIP election (Qualified Terminable Interest Property) is required to avoid the terminable interest limitation and make use of the marital deduction. It allows the creator of the trust to provide income for their surviving spouse, while still maintaining control over who will inherit the principal when the surviving spouse passes away.

To Avoid the Terminable Interest Limitation on the Marital Deduction