Qualified Terminable Interest Property (QTIP) trust - A Qualified Terminable Interest Property trust distributes income to a person for the duration of that person's life. Upon that person's death, the principal in the trust would be distributed to the beneficiaries. This trust is useful to a spouse in a second marriage, in that the trust would distribute income to the second spouse with the principal being distributed to the children of the first marriage (at the time of death of the second spouse).