How do I use a QTIP trust to protect assets in a second marriage?

Minnesota estate planning attorney Karen Schlotthauer explains how a person can protect assets in a second marriage situation through the use of a QTIP trust.

Contact Karen Schlotthauer

Email: [email protected]

Phone: (612) 336-9324

Transcript:

What do you call a trust that protects assets in a second-marriage situation? The trust is called a QTIP trust when we hold assets in trust for a spouse, but we restrict their rights and control over that money. They’re gonna get the income from it, they’ll have access to the principle, but they’re not gonna be able to say where it goes at the time of their death. You would be able to say where it goes based on the QTIP trust provisions. Well, it’s an acronym, Q-T-I-P, qualified terminable interest property. They’re getting it for a while, but it eventually goes somewhere else.