This part covers estate tax planning techniques, including the marital deduction
and the use of various types of trusts.
The interest of a donee spouse in a joint and survivor annuity in which only the donor and donee spouses have a right to receive payments during such spouses' joint lifetimes is treated as a "qualifying income interest for life" for which the marital deduction
is available unless the donor spouse irrevocably elects otherwise within the time allowed for filing a gift tax return.
According to the notice, to the extent that the applicable exclusion amount from estate or gift tax was applied to a transfer between spouses that did not qualify for the marital deduction
for federal estate or gift tax purposes at the time of the transfer solely because of DOMA, taxpayers will be permitted to establish that the transfer qualified for the marital deduction
and recover the applicable exclusion amount previously applied on a return because of the transfer, even if the statute of limitation for that return under Sec.
One of the first lines on a tax return is the Filing status, which can tell its whether our client qualifies for the estate taxes "unlimited marital deduction
The plaintiff argued that the trust settlor had created the trusts primarily for estate tax purposes--so that he could pass the property to his wife and take advantage of the marital deduction
, while ultimately leaving the property to his daughter.
On the estate tax return, the 100 percent interest was valued at $2,834,033, and a marital deduction
was claimed for 51 percent of such amount, or $1,445,357.
Answer--The first is for the testator to leave a specific dollar amount bequest; however, this technique is not recommended since it is impossible, in most cases, to arrive at a dollar amount that will exactly equal the desired marital deduction
at the time of the grantor's death with any degree of accuracy.
Reality: To be eligible for the marital deduction
, the QTIP must, among other things, provide the income beneficiary (surviving spouse) with all of the income of the trust, at least annually, for life.
When the practitioner is confronted in the preparation of the United States Estate Tax Return (Form 706) by a three-way JTWROS ownership of property involving a decedent spouse, two issues must be addressed: (1) the extent to which the JTWROS property is includable in the decedent spouse's gross estate; and (2) the amount of such property, if any, which is eligible for the Federal estate tax marital deduction
in the decedent spouse's gross estate.
gift tax marital deduction
, only a set amount each year ($120,000 in 2006) may be gifted free from U.
The value of all other items includible in the gross estate that qualify for the marital deduction
A decedent's estate tax liability is based on the decedent's taxable estate, which is the gross estate minus various deductions, which include a deduction for any debts of the estate and a marital deduction
for which a valid qualified terminable interest property (QTIP) election is made.