(31) A unitrust amount treated as income under local law may also be treated as income for purposes of the surviving spouse
's income interest in a QTIP trust or a power of appointment trust.
Appreciating assets can obtain a second step-up in basis upon the death of the surviving spouse
. Assets placed in a credit shelter trust are not included in the estate of the survivor, so they do not receive a step up in basis upon the survivor's death.
Without the insertion of these specific subsections covering specific dependents, dependents in these three situations would not qualify a parent as a surviving spouse
or for certain other benefits discussed later:
A surviving spouse
's share of the estate would increase from this amount from one-third to one-half if the decedent died without issue but had kindred, again with the provision that if the share is greater than $25,000, it is subject to limitations.
If a surviving spouse
and children of a killed Judge or Justice have not received the full lump sum due them within one year from the death of the Judge or Justice, any lump sum still to be granted to the surviving spouse
or surviving children of the killed Judge or Justice shall be computed based on the difference between the amounts already received and the 10 year lump sum based on current rates of salaries, benefits, allowances and other grants given to an Associate Justice of the Supreme Court, it said.
Lastly, a surviving spouse
can defer the minimum required distributions until December 31 of the year in which the deceased spouse would have attained the age of 701/2.
Under prior law, the manner in which the marital residence was titled at the decedent's death could have a dramatic impact on the amount of the elective share to which the surviving spouse
The court held that the surviving spouse
was entitled to carry forward one-half of the business's NOLs that were a direct result of her participation in the activity.
Depending on the returns generated from the non-cash ISA, losing the ability to hold monies in this way could greatly affect the income of the surviving spouse
Who should receive that outright distribution--only the surviving spouse
? Or other current and remainder beneficiaries?
For example, all future appreciation in the value of assets in a bypass trust is sheltered from estate tax in the surviving spouse
's estate, which is not true of assets that pass to a surviving spouse
Usually, if a surviving spouse
receives only the income interest in a piece of property, that property is included in the value of her deceased spouse's estate when computing estate taxes.