QTIPs and Testamentary CRTsQTIPs and Testamentary CRTs

Qualified terminable interest property trusts (QTIPs) continue to be an important tool in the estate-planning world both because of the growth of blended families and the high divorce rates in the United States, primarily with the Baby Boomer generation born between 1946 and 1964. Compared to other generations, Boomers are much more likely to be divorced. In fact, in 2009, over 58 percent of unmarried Boomers were single through divorce.¹ These divorces don’t always occur when people are young. In 2010, roughly 25 percent of all divorces occurred among individuals ages 50 and older.²

Most planners understand the importance of QTIPs for blended families; however, they’re often overlooked as a solution for individuals who wish to support ch...