A QTIP trust does which of the following?

A QTIP (Qualified Terminable Interest Property) trust is designed to provide income to a surviving spouse while allowing the testator to control the ultimate distribution of the trust assets after the surviving spouse's death. This structure ensures that the surviving spouse has access to the income generated by the trust during their lifetime, but the original grantor retains the ability to designate where the remaining assets will go after the surviving spouse passes away. This can fulfill the testator's wishes regarding the eventual distribution of property to beneficiaries, such as children from a previous marriage, protecting their interests.

The other options do not accurately represent the characteristics of a QTIP trust. The trust does not allow for deferring income payments (as the surviving spouse must receive income), nor does it grant an unlimited right of withdrawal or an inter vivos appointment right of $100,000 per year. Thus, the feature of directing the ultimate distribution of the trust's assets after the spouse's death is essential to the function and purpose of a QTIP trust.