In a QTIP marital trust, the surviving spouse may be given various powers of appointment. Which of the following may be included for the surviving spouse to have maximum control available as a beneficiary of a QTIP while retaining election options for the executor?

• A. Only limited powers of appointment.
• B. Limited powers and the 5×5 power.
• C. Only general powers of appointment, except the 5x5 power.
• D. General powers including the 5×5 power.

Answer: (B)

In a QTIP trust, you want the surviving spouse to have real ability to direct how the trust assets are used, but you also need to keep the power structure tight enough so the trust still qualifies for the marital deduction and the executor can elect QTIP treatment when appropriate. Giving the surviving spouse limited powers of appointment provides substantial control over distributions and who ultimately may receive trust assets, without making the power completely unfettered. The 5×5 power adds a further broad option for appointing the trust property, but it is restricted in a way that keeps it from turning into a fully general power. Together, these elements give the surviving spouse significant influence as a beneficiary while preserving the executor’s ability to make the QTIP election. If you relied only on limited powers, control wouldn’t be maximized; if you used only broad general powers (even with a 5×5), the structure could jeopardize the QTIP election. The combination therefore best balances maximum usable control for the surviving spouse with the necessary safeguards for the executor’s election rights.