A “C Trust” or “QTIP Trust” (QTIP stands for Qualified Terminable Interest Property) is a control trust. This is where one spouse owns more than $1.5 worth of assets and wants to control that additional amount of money after he or she passes away, yet also defer the tax on the amount above $1.5. By putting the amount above $1.5 into a QTIP trust, estate taxes are deferred until the surviving spouse passes away. An important issue, often overlooked, is who pays the estate tax on the QTIP assets (the surviving spouse). A QTIP trust is also used in connection with maximizing what is called the generation-skipping transfer tax exclusion amount.