In a QTIP marital deduction trust, which power maximizes the surviving spouse's control while retaining options for the executor?

In a QTIP marital deduction trust, the ability to maximize the control of the surviving spouse while providing flexible options for the executor is best achieved with limited powers combined with the 5x5 power. The limited power of appointment allows the surviving spouse to direct the distribution of trust assets, adding a level of control over how the trust property is used or allocated. This ensures that the spouse can manage the assets according to their needs and preferences.

The 5x5 power enables the spouse to withdraw up to the greater of $5,000 or 5% of the trust’s value each year. Such a feature is significant, as it provides the spouse with access to funds without compromising the overall integrity of the trust. This combination ensures that the surviving spouse has enough control to manage their financial situation while also leaving room for the executor to maneuver in order to fulfill their duties.

This approach is favorable in estate planning as it strikes a balance between controlling the assets for the surviving spouse's benefit and maintaining the trust’s effectiveness in accordance with possible estate tax advantages.