Pronunciation: [kjˈuːtˈɪp] (IPA) 
The word "QTIP" is spelled using the IPA phonetic transcription as "kjuːtɪp". The letter "Q" represents the sound "kw" which is followed by the vowel sound "u" pronounced as "oo". The letter "T" and "I" represent their respective sounds, "t" and "ɪ". The word is used to refer to a cotton swab used for cleaning the ear canal. Despite being a commonly used term, the spelling of the word is often mistaken as "cute tip".
QTIP is an acronym that stands for "Qualified Terminable Interest Property." It refers to a legal estate planning tool used in the United States to transfer property and assets between spouses while ensuring some level of control over those assets after the death of the first spouse.
In a QTIP trust, one spouse establishes a trust for the benefit of the surviving spouse during their lifetime, with the remainder interests passing to designated beneficiaries—typically children or other family members—upon the death of the surviving spouse. This allows the spouse who creates the trust to provide financial support to their surviving partner while preserving the ultimate distribution of the trust's assets according to their wishes.
The main purpose of using a QTIP trust is to ensure that the surviving spouse is taken care of while also maintaining control over the ultimate disposition of the property. It is particularly useful in situations where one or both spouses have children from a previous marriage or relationship and want to ensure that their respective family's interests are protected.
QTIP trusts offer certain tax advantages and estate planning benefits, as they allow the use of the marital deduction, which can help reduce or defer estate taxes. They are commonly used in complex estate planning scenarios to provide for both spousal financial well-being and efficient wealth transfer.
