>back to Foundation |  | Protect Your Family With a QTIP Trust
 John planned to leave his children and grandchildren a substantial inheritance, as well as make a significant gift to The Foundation for Knox Community Hospital. Unfortunately, he passed away before updating his estate plan.
John's wife, Susan, eventually remarried. But when Susan died, everyone was very surprised; there was nothing left to give. They discovered that Susan's new husband gave gifts to his own children from an earlier marriage - which depleted John's estate.
Had John established a Qualified Terminal Interest Property (QTIP) trust, his wife would have been well cared for and his children, grandchildren and the Foundation would have received the gifts that John intended.
With a QTIP trust, you specify that all or a portion of your assets be transferred to the trust upon your death. Income from the trust is paid to the surviving spouse for the duration of his or her life; then the trust principal passes to the designated beneficiaries.
A QTIP trust can be an effective planning tool in family situations where the surviving spouse may lack investment or financial experience. It also works well to protect the interests of children and grandchildren if there is a divorce. In addition, this type of trust can provide significant estate, gift and generation-skipping tax advantages.
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