Question: “How can I make sure my spouse is taken care of after I pass, but also make sure my children from a separate marriage are taken care of when my spouse passes?"
Question: “How can I make sure my spouse is taken care of after I pass, but also make sure my children from a separate marriage are taken care of when my spouse passes?
When it comes to estate planning, one of the most common—and most delicate—situations involve blended families. How do you provide for a surviving spouse while also ensuring that your assets ultimately pass to your children?
This is where a Qualified Terminable Interest Property (QTIP) Trust can play a critical role. While the name may sound technical, the concept behind a QTIP trust is straightforward: it allows you to take care of your spouse during their lifetime while still controlling where your assets go after they pass away.
For many families, especially those with prior marriages, children from different relationships, or significant wealth, this can be an essential tool for balancing competing priorities.
The Core Problem a QTIP Trust Solves
In a traditional estate plan, assets often pass outright to a surviving spouse. While simple, this approach comes with an important trade-off: Once the assets are in your spouse’s name, you lose control over what happens to them next.
This is where things can get uncomfortable, because some may say they trust their spouses completely and setting up a legal document to control where their assets go could be seen as insulting.
But reality is reality, and the fact is that surviving spouses can remarry, change beneficiaries, or spend/gift the assets. Even if they have zero intent of doing this when you initially pass, their mind could change down the road. The point is, there is simply no way to know with certainty.
In some families, it would be perfectly fine for the remaining spouse to do whatever they please with the assets. Perhaps there are no children involved, or perhaps the children involved belong to them both, but there is no particular plan of leaving a certain amount to them.
However, this is simply not the case in many families. For those cases, a QTIP Trust can be a very useful tool.
What Exactly is a QTIP Trust?
A QTIP trust is a type of irrevocable trust created as part of your estate plan that:
Provides income to your surviving spouse for life, and
Preserves the underlying assets for beneficiaries you choose (such as your children)
In other words, your spouse benefits from the trust during their lifetime—but they do not control where the assets go after their death. That decision is made by you, in advance.
The QTIP essentially solves two problems: making sure your spouse is taken care of after your death, and subsequently making sure your children (or whoever you wish), are taken care of after your spouse's death.
How a QTIP Trust Works
Let’s look at an example. A man in his 80's passes away and leaves $2 million to a QTIP trust. His wife is the income beneficiary, with his children from his first marriage as the remainder beneficiaries.
While his wife remains in the land of the living, she will receive income from the trust (interest, dividends, etc). It can also be set up so that even principal from the trust can be withdrawn for her, in certain situations which are dictated by the trust. If she needs extra money for a medical treatment, for example.
When his wife eventually passes, what remains in the trust then passes to his children. To reiterate what I mentioned before, his wife has no authority to change this outcome. She may never have wanted to and never would have anyway. But he wanted a legal guarantee of this.
This structure allows you to support your spouse while preserving your legacy for the next generation.
The Key Benefit: Control
The defining feature of a QTIP trust is control. Unlike an outright inheritance, where assets are fully transferred to your spouse, a QTIP trust allows you to:
Control who ultimately inherits your assets
Protect assets from being redirected to unintended beneficiaries
Create a clear, enforceable structure for your estate
This can be especially important in situations such as:
Second marriages
Blended families
Significant differences in wealth between spouses
Concerns about remarriage or creditor exposure
In these cases, a QTIP trust provides a way to balance fairness with protection.
The Tax Advantage of a QTIP Trust
In addition to control, QTIP trusts offer an important tax benefit.
Normally, transfers to anyone other than a spouse may trigger estate taxes. However, under current law, transfers to a spouse qualify for the unlimited marital deduction, meaning they are not subject to estate tax at the first death.
A QTIP trust qualifies for this same treatment—even though the assets are not owned outright by the spouse. This is known as QTIP election treatment.
What This Means
When you pass away, assets placed in the QTIP trust are not subject to estate tax at that time
Instead, the assets are included in your spouse’s estate when they pass away
This effectively defers estate taxes until the second death, which can be beneficial for long-term planning.
The Trade-Off: Inclusion in the Surviving Spouse’s Estate
While the marital deduction provides tax deferral, it comes with an important trade-off:
Assets in a QTIP trust are included in the surviving spouse’s taxable estate.
This means:
If your spouse’s estate exceeds the applicable estate tax exemption, taxes may be due at their death
However, your estate can still control who receives the assets
For many families, this trade-off is acceptable because the primary goal is control and protection, not necessarily tax minimization at all costs.
Who Should Consider a QTIP Trust?
A QTIP trust is not necessary for every estate plan, but it can be particularly valuable in the following situations:
Blended Families
This is the most common use case, as it allows you to provide money, mostly in the form of income, to your spouse after you pass; while also ensuring any children you have from a previous marriage inherit the remainder.
Protecting Children’s Inheritance
Even in first marriages, some individuals want to ensure their assets pass to specific beneficiaries, such as children from a prior relationship, family members, or even charitable organizations.
A QTIP trust ensures your wishes are followed, regardless of future changes.
Concerns About Remarriage
If your spouse remarries after your death, assets left outright to them could eventually pass to a new spouse, the stepchildren of that new spouse, or a different family altogether.
A QTIP trust protects against this by locking in your intended beneficiaries.
Asset Protection and Oversight
Because assets are held in trust:
They may have some protection from creditors
A trustee can help manage investments and distributions
You can ensure assets are used responsibly
The Role of the Trustee
As with all trusts, a trustee will be required. They will be responsible for managing the trust assets, distributing the income to the surviving spouse, making allowable discretionary distributions, and overall ensuring the terms of the trust are being followed.
Due to these important responsibilities, choosing the right trustee is essential. It could be a trusted family member, a professional (like from a bank or trustee company), or even a combination of both. (Note: At Everest Wealth Advisors, we work with both individual trustees as well as partner with a Trust company)
Are There Any Downsides to Consider?
Reduced Flexibility for the Surviving Spouse
The surviving spouse does not have full control over the assets, which could make them feel restricted and not trusted.
Complexity and Cost
QTIP trusts require proper legal drafting, ongoing administration and possible trustee fees. These are more complex and costly that a traditional will. However, a will cannot accomplish what this trust can.
Estate Tax Inclusion
As discussed, assets are included in the surviving spouse’s estate, which may create tax exposure depending on future laws and asset values. As of 2026, the federal estate tax exemption is $15 million; not a problem for most people, but a problem for some. Also, there is no telling what the estate tax exemption will be in the future.
Potential for Family Tension
Blended family dynamics can be sensitive. A QTIP trust can help reduce conflict—but if not communicated properly, it may also create misunderstandings.
QTIP Trust vs. Outright Distribution in a Nutshell:
To simplify, here’s the core difference:
Outright to Spouse
Full control to the spouse
Maximum flexibility
No guarantee of final beneficiaries
QTIP Trust
Provides income to spouse
Preserves assets for chosen beneficiaries
Offers control and protection
Neither approach is “right” in every situation—the best choice depends on your goals.
Bottom Line
A QTIP trust is ultimately about balance.
It allows you to:
Provide for your spouse
Protect your children
Maintain control over your legacy
For many families—especially those navigating second marriages or complex dynamics—it offers a thoughtful, structured solution to a difficult problem. However, like any estate planning strategy, it is not one-size-fits-all.
The right approach depends on your family situation, financial picture, tax considerations and long term goals.
How We Help
At Everest Wealth Advisors, we work with clients to design estate plans that align with both their financial goals and family values. We also partner with an estate planning platform, with access to estate attorneys, to help coordinate the appropriate legal documents you need to ensure your money does what you want it to do after you pass.
Everest Wealth Advisors is a wealth advisory firm that helps individuals, families, and business’s navigate complex financial decisions through personalized, goal based planning and disciplined investment strategies.
Ryan Page, CFP®, MBA®
Office & Text:720-826-1092
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
This information is not intended to be a substitute for specific individual tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.
