Qualified Terminable Interest Property (Q Tip) Trust
Strategy that provides that all income from assets in trust be paid at least annually for the life of the surviving spouse. This trust, which prohibits transfer of any assets to anyone else, can provide for the surviving spouse to will the property to one or more individuals among a group previously designated by the deceased spouse. For example, a husband establishes a Q TIP trust that gives his widow income for life. At the death of the wife, the corpus of the Q TIP trust will go the children, even though the corpus is part of the wire's estate. Since the husband elects how much of the estate is to be treated as Q TIP property, the estate tax strategy is to have only that portion of Q TIP property necessary to achieve zero estate death tax.
Popular Insurance Terms
In life insurance, action by an insurance company canceling premium payments by an insured who has been disabled for at least six months. The policy remains in force and continues to build ...
Portion of reinsurance premium received by the reinsurer that relates to the unexpired part of the reinsured policy. ...
Form of state rating legislation that allows each property/liability insurer to choose between using rates set by a bureau or its own rates. Individual states regulate insurers and approve ...
Will written totally in the handwriting of that individual whose name appears on the will. ...
Provision that excludes from coverage under Form No. 3: flood damage, except if the flood causes a fire, explosion, or theft; water damage from the backup of sewers; earthquake, except if ...
Same as term: engineering approach; human approach ...
In some life insurance policies, provision that permits the beneficiary, upon the death of the insured, to receive not only the death benefit payable under the policy but also all premiums ...
Mortality table that is a picture of the actual living and/or dying of the population (the universe) upon which the mortality table is based. No additions or subtractions are made to these ...
Expense listed on the Income and Expenditure accounting statement for the unexpired insurance policy owned. ...
Have a question or comment?
We're here to help.