Qualified Terminable Interest Property (QTIP) Trust

You’ve built up a large fortune through the sale of military-trained gorillas as supplemental officers in rural police departments. One of the perks of having tons of money is marrying somebody 20 years younger than you. Now you’re getting up there in years and need to start thinking about passing on your fortune.

You love your spouse. However, you don’t really like her friends. Or her family. Or anyone even remotely associated with her. You want your spouse to live well after you die. However, you still want to control where your fortune goes in the long-term.

Time for a qualified terminable interest property trust. This structure allows you to provide for your spouse after you pass away, without actually giving her the assets involved. The stuff put into the trust generates income, which benefits your spouse while they remain alive. But, when they pass, the assets in the trust get distributed based on your pre-set instructions.

It's like your spouse can use the assets for the rest of her life...but, when she kicks the bucket, the assets revert to the people you wanted to have the stuff in the first place.