At first glance, a new provision of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 might seem to have provided by law what estate planners have traditionally provided for their clients by setting up one or more trusts: a way to ensure that the estate or gift tax exclusion amount for the first spouse of a couple to die can be preserved and passed along to the surviving spouse
A marital deduction is generally not allowable where the surviving spouse
is not a United States citizen unless the transfer is to a qualified domestic trust (see Q 863).
Should the surviving spouse
need any of the cash value, the trustee can request a distribution from the annuity contract.
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.
All pension benefits of retired members of the Judiciary or their surviving spouse
and children shall be automatically increased whenever there is an increase in the salary of the same position from which he/she retired or is granted benefits.
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
How can the surviving spouse
ensure the use of the ported exemption before remarriage?
If a surviving spouse
remarries, and that person's new spouse dies before the surviving spouse
, the unused basic exclusion amount that had carried over from the first spouse is lost.
9) This can be particularly tricky when the surviving spouse
is both a trustee and beneficiary because of the natural propensity to act in one's own interest.
2036 (a) applies, the marital deduction is measured by the value of what actually passes to the surviving spouse
, which is a discounted partnership interest, and not by the value of the underlying assets.
12 million in 2012), to be added to the exclusion amount of the 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.