Chartered Retirement Planning Counselor (CRPC) Practice Exam 2025 – Comprehensive All-in-One Guide for Exam Success!

The income of a QTIP (Qualified Terminable Interest Property) trust is designed specifically to benefit the grantor's spouse. This type of trust allows the spouse to receive income from the trust during their lifetime, and upon their death, the remaining assets are then passed on to other beneficiaries, such as children or charities, as specified by the grantor. The key function of a QTIP trust is to provide financial support to the surviving spouse while ensuring that the assets are ultimately directed according to the grantor's wishes after the spouse's passing. This arrangement not only allows the spouse to benefit from the income but also provides certain tax advantages, including deferral of estate taxes until the second spouse dies, which is an important consideration in estate planning.

Other individuals, such as children or charities, may not have the right to benefit directly from the income generated by the trust during the lifetime of the surviving spouse, which clarifies why they would not be the correct answers.