QUALIFIED TERMINABLE INTEREST PROPERTY

A terminable interest that will qualify for the marital deduction if an appropriate election is made by the donor or executor. In order to be QTI property, the surviving spouse must be entitled to all of the income of the property during the spouse's life and no person, including the spouse, may have the right to appoint the property to anyone other than the spouse during the spouse's life. The major benefit of a QTIP marital trust to a grantor is that, at the surviving spouse's death, the remaining trust property is not subject to a general power of appointment in the spouse, but instead passes to beneficiaries selected by the grantor.