What is a QTIP?

A recent article regarding important estate-planning tips for attorneys to consider mentioned the importance of a powerful estate-planning vehicle with a funny acronym. The article discussed how a QTIP trust could serve as an important piece of an overall Alabama estate plan. First things first, let's be clear that we aren't talking about a little stick that's meant for your ear. QTIP stands for "qualified terminal interest property" trust. Qualified means it's property that is qualified for the marital deduction. Terminal means the surviving spouse gets the income interest during his or her lifetime, but that interest terminates at his or her death.