In 1948, the marital deduction was introduced to equalize treatment of couples in community property states with those in non-community property states.
Taxable gifts, which are calculated by subtracting the annual exclusion amount, charitable deduction, and marital deduction from total gifts, were $24.
Marital deduction--Gifts between spouses, either during life are at death, qualify the donor for an unlimited marital deduction for the full amount of the transfer.
Certain trusts, simple trusts, pooled income funds, marital deduction trusts, qualified domestic trusts (QDOT), net income charitable trusts, grandfathered generation-skipping transfer (GST) trusts and qualified subchapter S trusts must determine the amount of income required to be distributed.
Example 1: A qualified terminable interest property trust is meant to qualify for the marital deduction.
This departure may be sufficient to deprive a surviving spouse of the enjoyment of the underlying property, resulting in a loss of the marital deduction.
To qualify for the estate marital deduction under Sec.
sections] 2056(d), when the surviving spouse of the decedent is not a citizen of the United States, no marital deduction is permitted and the deemed one-half interest in joint property does not apply.
1) The QDOT must meet the basic requirements for any of the various marital deduction trusts under I.
If the actual transfer is not timely made, the marital deduction is not allowed.