marital deduction

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marital deduction

n. when one spouse dies, the survivor may take a tax deduction of half of the value of the estate of the dying spouse. Thus, the minimum value of the estate before there is a possible federal estate tax rises from $600,000 to $1,200,000 at the death of the first spouse to die. In trusts which a married couple creates, they can agree that on the death of the first to go, the amount of the property which is given to the survivor is limited to the amount which will not be subject to federal estate tax, thus delaying some or all estate tax until the death of the surviving spouse. Such trust provisions should be written only by an attorney and with consultation with an accountant or financial adviser. (See: community property, estate tax, trust)

References in periodicals archive ?
Beginning with an overview of the major sections of estate planning practice, the volume covers ethics in estate planning, establishing attorney-client relationships, wills, trusts, transfer taxes, non-taxable gifts, credit shelter trusts, marital deductions, irrevocable life insurance trusts, elder law, Medicaid, guardianships, estate administration, and will caveats.
Figure B Total Gifts, Annual Exclusions, Marital and Charitable Deductions and Taxable Gifts, Gift Year 2008 [All figures are estimates based on samples-money amounts are in thousands of dollars] Item Amount Total gifts [1] 40,153,563 Total annual exclusions [2] 9,248,541 Marital deductions 1,955,546 Charitable deductions 4,103,220 Total taxable gifts [3] 24,878,317 [1] "Total gifts" is reported on Form 709, Part 4, Line 1.
Special rules are provided for computing (1) income for CRUTs and pooled income funds, (2) marital deductions and (3) gains or losses on property distributions.
It describes the two types of marital deductions that provide the needed flexibility, the Clayton contingent QTIP trust and the marital deducation disclaimer trust.
In the case of a noncitizen who is a citizen of another country with which the United States has a tax treaty with respect to estate, inheritance, or gift taxes, the QDOT rules do not apply to the extent they are inconsistent with the provisions of such treaty relating to estate, inheritance, or gift tax marital deductions.
Exploring all legislation and regulation in this complex, changing area of taxation, this book covers key topics including: deathbed transfers, charitable trusts, valuation, gifts to minors, unified credit, jointly-held property, proceeds of life insurance, qualified domestic trusts, marital deductions, common disaster provisions, powers of appointment, etc.
In the seminar, Adams and Burns will explain how the economic environment affects the use of a variety of estate-planning techniques, including taxation, gifts, marital deductions, and credit for previously-taxed property.
Editorial carries analysis of both the income and transfer tax principles, both of which include the "Repeal" changes in the IRS Code made by EGTRRA, as well as sample clauses for equalization-of-rates marital deductions, zero-tax marital deducations, generation-skipping exemptions, and surtax avoidance plans.
In the seminar, Roy Adams and Ann Burns will explain how the economic environment affects the use of a variety of estate-planning techniques, including taxation, gifts, marital deductions, and credit for previously-taxed property.
E[acute accent]In the seminar, Adams and Burns will explain how the economic environment affects the use of a variety of estate-planning techniques, including taxation, gifts, marital deductions, and credit for previously-taxed property.