Which statement best describes the role of a QTIP trust in allowing the testator to control disposition of corpus after the surviving spouse's death?

Which statement best describes the role of a QTIP trust in allowing the testator to control disposition of corpus after the surviving spouse's death?

• A. Allows the testator to appoint beneficiaries after death of surviving spouse.
• B. Allows the spouse to appoint beneficiaries after testator's death.
• C. Requires the surviving spouse to appoint all assets upon death.
• D. Disallows any control over disposition of corpus after spouse's death.

Answer: (A)

A QTIP trust is designed so the surviving spouse receives all income for life, while the original grantor (the testator) preserves control over who ultimately receives the assets when the spouse dies. By setting up the trust, the testator names the beneficiaries who will receive the trust remainder after the spouse’s death. This arrangement satisfies the marital deduction for tax purposes while ensuring the testator can direct the ultimate disposition of the corpus once the surviving spouse is gone. So the statement that best fits is that the testator can appoint beneficiaries after the surviving spouse dies, because the remainder of the trust is distributed according to the testator’s instructions, not the spouse’s. The surviving spouse’s rights are limited to income during life; they don’t control who gets the principal after death.

A QTIP trust is designed so the surviving spouse receives all income for life, while the original grantor (the testator) preserves control over who ultimately receives the assets when the spouse dies. By setting up the trust, the testator names the beneficiaries who will receive the trust remainder after the spouse’s death. This arrangement satisfies the marital deduction for tax purposes while ensuring the testator can direct the ultimate disposition of the corpus once the surviving spouse is gone.

So the statement that best fits is that the testator can appoint beneficiaries after the surviving spouse dies, because the remainder of the trust is distributed according to the testator’s instructions, not the spouse’s. The surviving spouse’s rights are limited to income during life; they don’t control who gets the principal after death.