EST2607. The QTIP Election — What You Need to Know

Qualifying for the estate tax marital deduction through a Qualified Terminable Interest Property (QTIP) election may appear straightforward, but the election is subject to numerous technical requirements and traps for the unwary. This session examines the QTIP rules in detail, including which property interests qualify, who makes the election and when, how to apply QTIP treatment to an IRA, and methods for curing defective QTIP elections. The discussion also covers recent cases addressing Section 2519, terminations of QTIP trusts, and other common planning and administration challenges.

Learning Objectives:

• Analyze who makes the QTIP election and how to make it.
• Determine what type of interests qualify for the QTIP election.
• Analyze how a Clayton QTIP election provides flexibility in determining who benefits from trust assets for which a QTIP election is not made.
• Identify the many planning opportunities that are available with a QTIP election.