The following information provides a general explanation of qualified terminable interest property (QTIP). Please see RCW 83.100.047 for more details.
Qualified terminable interest property
QTIP means property:
- Which passes from the decedent,
- In which the surviving spouse has a qualifying income interest for life, and
- To which a QTIP election is allowed.
The surviving spouse has a qualifying income interest for life if:
- The surviving spouse is entitled to all the income from the property, payable annually or at more frequent intervals, or has a right to use and enjoy an interest for life in the property, and
- No person has a power to appoint any part of the property to any person other than the surviving spouse.
The term “property” includes an interest in property.
The election can be made on the last estate tax return filed by the executor on or before the due date of the return, including extensions, or, if a timely return is not filed, the first estate tax return filed by the executor after the due date. The QTIP election, once made, is irrevocable. The election may only be revoked or modified on a subsequent estate tax return filed on or before the due date of the return, including extensions actually granted.
If electing or reporting QTIP, complete the Washington State Estate Tax Addendum # 1 – Qualified Terminable Interest Property or Qualified Domestic Trust and attach to the Washington estate tax return.