* Control Over Ultimate Disposition of Assets--If a traditional plan is utilized, the DS can direct the ultimate disposition of all of his or her assets upon the death of the SS through provisions in the bypass trust and/or
marital trusts (assuming the marital share is held in trust).
Estate of Olsen (6) teaches a valuable lesson about properly funding
marital trusts so that the amount required to be included in the surviving spouse's estate under Sec.
opting] for outright bequests or
marital trusts so that the assets bequeathed will be included in the taxable estate of the surviving spouse to receive a step up in income tax basis on the second spouse's death," Shenkman said.
Bigam Testamentary Family and
Marital Trusts; Web Service Co.
With all of these changes and uncertainty in tax law, drafting for bypass and
marital trusts will need to be much more flexible.
With regard to returns for the sub-trusts, such as the survivor's, by-pass and
marital trusts, the IRS wanted these returns filed based on facts and not on a "deemed" funding date.
This is a comprehensive form for preparing a simple will, pourover will, a will with little or no tax planning, as well as wills containing
marital trusts and GST tax planning.
From a post-death-continuing-administration-perspective, it is likely that the traditional plan would be more expensive to administer (i.e., because of fees for the preparation of accountings and income tax returns for the by-pass and
marital trusts, etc.)
The decedent's estate discounted the assets of the
marital trusts created by her previously deceased spouse and included in her estate 29% (approximately $14.7 million) attributable to the pending appeal.
A third option is to make the trust instrument provide that the survivor's trust be funded with the entire interest in the entity owning the practice, and a distribution of additional property may be made to the bypass or
marital trusts to "equalize" the distribution of the entity to the survivor's trust.
In preparing the estate tax return, Form 706, Schedule M was properly completed, qualifying both
marital trusts A and B for the marital exemption.
Bank to transfer the
marital trusts' marketable securities to an FLP as a vehicle to reduce estate taxes that would be owed in Janice's estate upon her death.
