In addition, property passing into certain types of trusts created by one spouse for the benefit of the other spouse qualify for the unlimited marital deduction, including a marital deduction trust, a qualified terminable interest property trust (or QTIP trust), which is the "A" Trust in an AB Trust plan, or even an inter vivos qualified terminable interest property trust (or inter vivos QTIP trust), which is created for the benefit of a spouse during the trustmaker's lifetime.
States that collect a state estate tax also allow for the unlimited marital deduction for state estate tax purposes. In states that allow for a state only QTIP election through the use of an ABC Trust plan, the "A" Trust and "C" Trust will be QTIP trusts that qualify for the state unlimited marital deduction.
