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Utilizing Lifetime QTIP Trusts in Estate Planning: Tax Issues, State Limitations, Key Provisions, and Options

Note: CPE credit is not offered on this program

Recording of a 90-minute CLE video webinar with Q&A

This program is included with the Strafford CLE Pass. Click for more information.
This program is included with the Strafford All-Access Pass. Click for more information.

Conducted on Thursday, December 7, 2023

Recorded event now available

or call 1-800-926-7926

This CLE course will provide guidance to trusts and estates counsel on utilizing lifetime qualified terminable interest property (QTIP) trusts in estate planning under current tax law. The panel will discuss critical issues and pitfalls to avoid in relation to income, gift, estate and GST taxes, state law issues, key drafting considerations, and other items to minimize tax liability and ensure multi-generational gifting and flexible long-term planning.


Individuals often desire to gift assets to family members and close associates during their own lifetimes as well as through wills. Lifetime QTIP trusts provide the ability to resolve issues with married couples whose respective estates are significantly unbalanced and may provide creditor protection benefits. Estate planners must understand the challenges of utilizing these trusts given the shift in focus from estate tax to income tax to accommodate clients' goals.

A QTIP trust enables the estate of a deceased spouse to take advantage of the marital deduction and maintain control over the distribution of trust assets. It also preserves the deceased spouse's unused GST exemption, provides a step-up in basis upon the death of the surviving spouse, and possibly postpones payment of state level estate taxes.

Estate planners must understand the advantages and limitations of QTIP trusts, the intricacies of the tax code, and the implications in regard to exemptions.

Listen as our experienced panel provides a thorough and practical guide to the technical aspects of designing and implementing lifetime QTIP trusts as a means of providing for a spouse while preserving assets for children or other beneficiaries.



  1. Considerations for the use of QTIP trusts in estate planning
  2. Tax considerations under current tax law
  3. Potential state law challenges
  4. Other alternative methods for gifting and long term planning
  5. Unique considerations for blended family couples and the use of QTIP Unitrusts/Annuity Trusts
  6. Using intervivos QTIP trusts to avoid NY/CA income tax in light of Anti-ING statutes
  7. Using QTIP elections to “undo” taxable gifts to SLATs when the market tanks or tax law changes
  8. Why Clayton QTIP election schemes should be avoided for intervivos QTIPs and valid alternatives
  9. “Back door” interests for the Settlor if the done spouse dies first


The panel will review these and other high priority issues:

  • What are the key considerations for the use of QTIP trusts in estate planning?
  • What are the state law challenges?
  • What are the critical elements when structuring QTIP trusts and what are the pitfalls to avoid?
  • What tax issues arise in the use of QTIP trusts under current tax law?
  • What other methods are available for gifting and long term planning?


Hood, Paul
L. Paul Hood, Jr., JD, LL.M, CFRE, FCEP

Paul Hood Services

A native of Louisiana (and a double LSU Tiger), Mr. Hood obtained his undergraduate and law degrees from Louisiana...  |  Read More

Morrow, Edwin
Edwin P. Morrow, III, J.D., LL.M. (Tax), MBA, CFP, CM&AA

Wealth Strategist
Huntington National Bank Private Wealth Management

Mr. Morrow is currently the Regional Wealth Strategist for Huntington National Bank's private banking unit, where...  |  Read More

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