terminable interest

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Noun1.terminable interest - an interest in property that terminates under specific conditions
stake, interest - (law) a right or legal share of something; a financial involvement with something; "they have interests all over the world"; "a stake in the company's future"
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An example of a terminable interest is where the decedent leaves property to a surviving spouse for the spouse's lifetime, with a remainder interest to the decedent's children.
However, if qualifying for the marital deduction or a reverse qualified terminable interest property (QTIP) election would require a QTIP, qualified domestic trust (QDOT), or reverse QTIP election, those taxpayers will have to request relief under Regs.
Purdue died, he created a bypass trust, a qualified terminable interest property (QTIP) trust and a GST-exempt trust, each of which owned a portion of the LLC.
Indeed, a qualified terminable interest property (QTIP) trust may offer benefits to married couples.
As another option, a Qualified Terminable Interest Property trust can enable a grantor to provide for a surviving spouse and maintain control of how the assets of the trust are distributed once the surviving spouse has also died.
I find this leads to much less of the A-B trust needs we are used to seeing, although there is often still the need for a QTIP trust -- Qualified Terminable Interest Property -- and a discussion of the pros and cons.
The Ninth Circuit recently held that gift taxes incurred when a gift of a life interest in a qualified terminable interest property (QTIP) trust was made are subject to this gross-up rule.
However, if the property in the trust is "qualified terminable interest property" and the surviving spouse's interest is a "qualifying income interest for life" (see "IRC Section 2056, Marital Deduction," below), the charitable contributions deduction may be taken by the surviving spouse's estate upon her death, the decedent's estate having taken a marital deduction (assuming the executor's election) for the entire value of the property.
In some states, the qualified terminable interest property trust, which is available under federal law, is also available under state law.
May a trust intended to qualify for the marital deduction as "qualified terminable interest property" (QTIP) authorize the trustee to retain or acquire life insurance policies?
Description of the estate tax marital deduction (to include qualified terminable interest property).
Probably the most severe consequence of the Illinois estate tax decoupling from the federal estate tax is the unavailability of the marital deduction for transfers to a qualified terminable interest property trust ("QTIP") for Illinois estate tax purposes only.