QTIP Trust Marital Deduction Calculator 2026 β Second Marriage Estate Planning
Calculate QTIP trust estate tax savings. Model the 100% marital deduction at first death, surviving spouse income for life, and second-death estate tax with trust appreciation.
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Remaining after bypass trust; typically all or most of estate
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First Death vs Second Death Estate Tax
How QTIP Trust Estate Planning Works
The QTIP trust provides complete flexibility: the first spouse controls who ultimately receives the assets while still deferring estate tax through the unlimited marital deduction.
First Death Tax = max(0, (Gross Estate β QTIP Amount β Exemption) Γ 40%)
QTIP Value at Second Death = QTIP Amount Γ (1 + return%)^years
Second Death Gross Estate = QTIP Value + Survivor's Own Estate
Second Death Tax = max(0, (Second Estate β Exemption) Γ 40%)
Total Tax = First Death Tax + Second Death Tax
QTIP Value at Second Death = QTIP Amount Γ (1 + return%)^years
Second Death Gross Estate = QTIP Value + Survivor's Own Estate
Second Death Tax = max(0, (Second Estate β Exemption) Γ 40%)
Total Tax = First Death Tax + Second Death Tax
Example: $8M estate, all in QTIP, 6% return, 15 years, survivor's own estate $3M
First death tax: $0 (QTIP = 100% marital deduction)
QTIP value at second death: $8M Γ 1.06^15 = $19.2M
Second death estate: $19.2M + $3M = $22.2M
Second death tax: ($22.2M β $13.99M) Γ 40% = $3.28M
First death tax: $0 (QTIP = 100% marital deduction)
QTIP value at second death: $8M Γ 1.06^15 = $19.2M
Second death estate: $19.2M + $3M = $22.2M
Second death tax: ($22.2M β $13.99M) Γ 40% = $3.28M
Extended
Two-Death Estate Simulator
Model both deaths with growth rate, income draws, GST allocation, and QTIP vs outright bequest comparison
Full two-death simulation with survivor income draws, appreciation, GST allocation, and strategy comparison.
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All income must be distributed to survivor annually
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Trust Asset Value Over Time (Both Death Events)
QTIP Trust Value Estate Tax Paid
QTIP vs Outright Bequest vs Disclaimer Trust β Strategy Comparison
| Strategy | First Death Tax | Second Death Estate | Second Death Tax | Total Tax | Net to Heirs |
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Frequently Asked Questions
What is a QTIP trust and how does it provide a marital deduction?
A Qualified Terminable Interest Property (QTIP) trust qualifies for the 100% federal estate tax marital deduction at the first spouse's death. The executor makes a QTIP election on Form 706. The surviving spouse must receive all income at least annually for life, and no one (including the survivor) can appoint the principal to anyone other than the survivor during the survivor's lifetime. At the survivor's death, the trust assets are included in their taxable estate.
When is a QTIP trust typically used?
QTIP trusts are most common in second marriage situations where the deceased spouse wants to provide for the surviving spouse but ultimately pass assets to children from a prior marriage. Without a QTIP, assets left outright to the survivor could be redirected to new heirs. The QTIP provides income to the survivor for life while preserving the remainder for the first spouse's chosen beneficiaries (typically children).
How does the QTIP trust affect the second death estate tax?
At the second death, all QTIP trust assets are included in the surviving spouse's gross estate. This is the key tradeoff: the first spouse defers estate tax at their death (using the marital deduction), but the trust assets grow in the survivor's estate. The second estate must have sufficient exemption or pay estate tax on both the survivor's own assets AND the QTIP trust remainder.
Can the surviving spouse access QTIP principal?
The surviving spouse is entitled to all trust income but generally cannot access principal (except for health, education, maintenance and support β HEMS β if the trust document allows). The trustee can also have a limited power to sprinkle principal among the survivor. The key restriction is that during the survivor's lifetime, no one other than the survivor may receive principal distributions.
What is the difference between a QTIP trust and a marital bypass (credit shelter) trust?
A QTIP trust gets the marital deduction and defers estate tax to the second death. A bypass trust (also called a "credit shelter" or "family" trust) uses the first spouse's exemption ($13.99M in 2026) rather than the marital deduction. Assets in a bypass trust are NOT included in the survivor's estate. Estate planners often use both: a bypass trust to use the first spouse's exemption, and a QTIP for the remaining assets to defer tax via the marital deduction.