Qualified Terminable Interest Property Election

Qualified terminable interest property (QTIP) is property left by a deceased person, or decedent, where the surviving spouse gets all income from the property or retains use of the property until the surviving spouse dies. 

This only applies if an election is made by the personal representative or executor of the decedent's estate. This election is irrevocable and cannot be amended.

State and Federal QTIP Elections

Minnesota follows federal QTIP elections only if they were made on a filed federal Form 706. 

Minnesota also allows its own QTIP election for qualifying property separate from the federal election. It is not necessary to file federal Form 706 to make the Minnesota-only QTIP election. 

Taxpayers making the federal QTIP election on certain assets can also make a Minnesota-only QTIP election on assets that were not included in the federal election. 

The Minnesota-only QTIP election is made on Worksheet A of Minnesota Form M706.