To satisfy the QDOT rules and obtain the marital deduction, not only does the property have to be transferred to a QDOT and a timely election made on the estate tax return, but the marital deduction trust
requirements must also be satisfied.
The 2008 Cumulative Supplement to A Practical Guide to Drafting Martial Deduction Trusts updates the text of the main volume and includes the two complete updated marital deduction trust
An example of good trust planning is a marital deduction trust
A trust can be structured to provide income to a surviving spouse without qualifying as a marital deduction trust
To address this problem, B could revise his will so that the stock and other assets going to A's benefit will be transferred from his estate to a qualifying marital deduction trust
following his death.
The most common plan for a married couple involves the preparation of a credit shelter trust and marital deduction trust
for both husband and wife.
The trust instrument further said George and Lavedna's intention was the marital deduction trust
property "may qualify" for the qualified terminable interest property (QTIP) deduction and "shall only" be taxed in the estate of the second spouse to die.
Although this tax deferral can be accomplished by simply making an outright devise to the surviving spouse, the use of a marital deduction trust
is also widely used to achieve this result.
Thus, the IRD will be included on the estate income tax return, and will not be taxed to the surviving spouse or to the marital deduction trust
If the spouse so elected, the decedent's separate property, together with both his and his spouse's interests in community property, would be transferred to a marital deduction trust
in which the surviving spouse had a right to income for life.
In Clayton,(78) the decedent's will provided that the residue of his estate be allocated between two trusts: the first funded with an amount equal to the unified transfer tax credit equivalent and the second a QTIP marital deduction trust
With properly written terms, S stock can fit neatly into a standard marital deduction trust