For estate tax purposes, the lack of a marital deduction
for transfers to a noncitizen spouse means that all of the assets in the resident spouse's estate that pass to the noncitizen spouse will be taxable.
Moving forward, the estates of same-sex spouses will be able to use the marital deduction
If the tax return is for a married couple and they are married tiling separate, determine if there are also separate property considerations that can affect the marital deduction
2006-26 the IRS held that a marital deduction
will not be allowed for a trust that is a beneficiary of a retirement plan if it is drafted to follow the 10% rule.
The residuary trust qualifies for the estate tax marital deduction
, pursuant to IRC [section]2056(b)(7).
Pursuant to IRC Section 2056(d)(1) as a general rule, an estate tax marital deduction
is denied for property passing to a surviving spouse who is not a United States citizen.
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.
A Practical Guide to Drafting Marital Deduction
Trusts (with Sample Forms and Checklists) is available for $199 from The American Law Institute-American Bar Association's Web site at www.
2056(b)(7) to treat the property transferred to the residual trust as qualified terminable interest property (the QTIP election), thus qualifying the property for the marital deduction
The Ninth Circuit Court of Appeals recently upheld a district court's decision that a self-prepared will's bequest qualified for the marital deduction
, even though its literal wording created a disqualifying terminable interest.
The first decision is whether the estate should elect the marital deduction
for the homestead on the decedent's estate tax return.
Working papers contain revised client interview forms, wills and trusts, including several for specialized situations, such as marital deduction
trusts, by-pass trusts and Crummey powers.