Seven requirements must be met for an interest to qualify for the federal estate tax marital deduction:
1.The decedent must be legally married at the time of his or her death;
2.The person to whom the decedent is legally married at the time of his or her death must survive the decedent;
3.The surviving spouse must be a U.S. citizen (or the property must be held in a Qualified Domestic Trust.
4.The interest passing to the surviving spouse must be includable in the decedentýs gross estate in the United States;
5.The interest must pass to the surviving spouse;
6.The interest received by the surviving spouse must be a deductible interest; and
7.The value of the interest passing to the surviving spouse must be at its net value.
An interest is nondeductible to the extent that it is not includable in the decedentýs gross estate. A marital deduction will not be allowed for property that is otherwise deductible as an expense, claim or loss. No double deduction is permitted. Thus, an interest cannot qualify for the marital deduction if it otherwise is deducted under either IRC Section 2053 or Section 2054. IRC Section 2056(b)(9). For example, no marital deduction is allowed for property that passes to the surviving spouse that is used by the estate to pay the decedentýs funeral expenses.
Section 2056(c) of the IRC defines passing to include interests acquired by the surviving spouse by will, intestate succession, dower, curtesy, statutory share, right of survivorship, the exercise or default of exercise of a power of appointment, or pursuant to a life insurance beneficiary designation. The passing requirement also can be satisfied by designating the surviving spouse as the beneficiary of employee death benefits or any other annuity includable in the decedentýs gross estate under IRC Section 2039. (Treas. Reg. §20.2056(c)-1, 2, 3).
A District of Columbia Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust is a type of estate planning tool designed for married couples residing in the District of Columbia. This trust arrangement allows for the deferral of estate taxes upon the first spouse's death, while ensuring that the surviving spouse is provided for during their lifetime. The primary purpose of this trust is to maximize the available marital deduction, thereby minimizing the estate tax burden. The District of Columbia Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust involves several key elements and features. Firstly, the trust is created upon the death of the first spouse, with the deceased spouse's assets being transferred into the trust. The surviving spouse then becomes the primary beneficiary of the trust, entitled to receive income generated by the trust assets for the duration of their lifetime. Additionally, the trust grants the surviving spouse a power of appointment, which allows them to decide how the trust assets will be distributed upon their death. This power of appointment ensures that the surviving spouse has flexibility in determining the ultimate beneficiaries of the trust and can accommodate any changes in circumstances that may occur over time. Moreover, the trust includes a residuary trust provision, which stipulates that upon the death of the surviving spouse, any remaining trust assets will be distributed to the named beneficiaries or as directed by the surviving spouse's power of appointment. This provision ensures that the remaining assets are distributed in accordance with the wishes of the spouses and any applicable estate planning objectives. It is worth noting that there may be variants or different forms of the District of Columbia Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust, based on individual circumstances and preferences. These variations may involve specific provisions tailored to the couple's unique financial situation, tax considerations, and personal goals. Overall, the District of Columbia Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust is a sophisticated estate planning tool designed for married couples in the District of Columbia, allowing for the deferral of estate taxes, provision of lifetime income to the surviving spouse, and the ability to control the ultimate distribution of assets. This trust structure provides peace of mind and facilitates efficient asset management and wealth transfer within the confines of applicable laws and regulations.A District of Columbia Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust is a type of estate planning tool designed for married couples residing in the District of Columbia. This trust arrangement allows for the deferral of estate taxes upon the first spouse's death, while ensuring that the surviving spouse is provided for during their lifetime. The primary purpose of this trust is to maximize the available marital deduction, thereby minimizing the estate tax burden. The District of Columbia Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust involves several key elements and features. Firstly, the trust is created upon the death of the first spouse, with the deceased spouse's assets being transferred into the trust. The surviving spouse then becomes the primary beneficiary of the trust, entitled to receive income generated by the trust assets for the duration of their lifetime. Additionally, the trust grants the surviving spouse a power of appointment, which allows them to decide how the trust assets will be distributed upon their death. This power of appointment ensures that the surviving spouse has flexibility in determining the ultimate beneficiaries of the trust and can accommodate any changes in circumstances that may occur over time. Moreover, the trust includes a residuary trust provision, which stipulates that upon the death of the surviving spouse, any remaining trust assets will be distributed to the named beneficiaries or as directed by the surviving spouse's power of appointment. This provision ensures that the remaining assets are distributed in accordance with the wishes of the spouses and any applicable estate planning objectives. It is worth noting that there may be variants or different forms of the District of Columbia Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust, based on individual circumstances and preferences. These variations may involve specific provisions tailored to the couple's unique financial situation, tax considerations, and personal goals. Overall, the District of Columbia Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust is a sophisticated estate planning tool designed for married couples in the District of Columbia, allowing for the deferral of estate taxes, provision of lifetime income to the surviving spouse, and the ability to control the ultimate distribution of assets. This trust structure provides peace of mind and facilitates efficient asset management and wealth transfer within the confines of applicable laws and regulations.
Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés. For your convenience, the complete English version of this form is attached below the Spanish version.
