Question

In a QTIP marital deduction trust, the surviving spouse may be given various powers of appointment. Which of the following may be included for the surviving spouse to have maximum control available as a beneficiary of a QTIP while retaining election options for the executor?

a. only limited power of appointment.
b. limited powers and the 5x5 power
c. only general powers of appointment, except the 5x5 power
d. general powers including the 5x5 power

Answer 1

In a QTIP marital deduction trust, the surviving spouse may have limited powers of appointment and the 5x5 power to retain election options for the executor.

Step-by-step explanation:

A QTIP (Qualified Terminable Interest Property) marital deduction trust allows the surviving spouse to have control over certain powers of appointment. The surviving spouse may be given limited powers of appointment, which allows them to distribute the trust's assets among a predetermined class of beneficiaries but with certain restrictions. They can also have the 5x5 power, which allows them to distribute up to 5% of the trust's assets among anyone they choose without any restrictions.