The surviving spouse's interest in the annuity is considered a non-deductible terminable
interest even though no interest in the annuity has passed from the decedent to any other person (see Q 863).
However, when a third party becomes a co-tenant with the married spouses owning property as JTWROS, the possibility exists that a terminable
interest will be created in the property interest passing to the surviving spouse; and loss of the estate tax marital deduction will occur with respect to the value of such property includable in the decedent spouse's gross estate which passes to the surviving spouse.
can the decedent's executor elect to treat the decedent's IRA as qualified terminable
interest property, and thus have it qualify for the marital deduction?
Estate planners should take care that qualified terminable
interests designed to qualify for the marital deduction carefully duplicate the requirements of IRC section 2056(b)(5) and (7) and regulations section 2056(b)-5.
Although the surrogate court granted relief, the IRS questioned whether the trust interest the decedent's will created was eligible for the estate tax marital deduction as qualified terminable
interest property within the meaning of section 20560(b)(7).
The spouse's subsequent disposition of all or part of qualified terminable
interest property can have significant unintended gift tax consequences under IRC section 2519.
3 million on certain appreciated assets; an additional $3 million increase in basis will be available for outright transfers or qualified terminable
interest property transferred to a surviving spouse, under Sec.
A general power of appointment trust is an alternative to a qualified terminable
interest property (QTIP) trust for obtaining the estate tax marital deduction.
The executors of the decedent's spouse's estate made a qualified terminable
interest property (QTIP) election for both marital trusts; as a result, the trusts were included in the decedent's estate on later death (under Sec.
you created a qualified terminable
interest property (QTIP) trust in your will?