united-states wills trusts-and-estates
Testamentary Trust
<p>A person is thinking about leaving his money to four people. I will call them p1,p2,p3 and p4. When he dies he wants his money to go into a trust. In addition, he wants p1, p2 and p3 to be able to take out a small percentage of the trust every year. When three of the following people are dead: p1,p2,p3 and p4 ; he wants the money to go to the remaining survivor.</p>
<p>Is there any problem doing this? Would this be considered a QTIP trust?</p>

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<p>Is there any problem doing this?</p>
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<p>This is not a problem. This is a typical and plain vanilla testamentary trust.</p>
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<p>Would this be considered a QTIP trust?</p>
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<p>No. QTIP stands for &quot;qualified terminable interest property&quot;. A <a href="https://www.investopedia.com/terms/q/qtip.asp" rel="nofollow noreferrer">QTIP trust</a> is a trust for the benefit of a surviving spouse that is allowed to qualify for the marital deduction from gift and estate taxation despite the fact that it would not qualify for that deduction in the absence of the tax code provision authorizing the QTIP election. It allows the decedent spouse to exert more control over the final disposition of the trust assets than would otherwise be possible while still qualifying for the marital deduction.</p>
