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).
Nebraska Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust is a legal arrangement designed to maximize tax benefits for married couples in the state of Nebraska. This trust combines two important estate planning tools: the marital deduction trust and the lifetime income trust, along with a power of appointment provision for the beneficiary spouse. The purpose of the Nebraska Marital Deduction Trust is to minimize estate taxes upon the death of the first spouse, while providing income for the surviving spouse and ensuring that the remaining trust assets pass to the desired heirs upon the surviving spouse's death. This trust allows the first spouse to leave assets, up to the maximum amount allowed by the federal and state estate tax laws, to the trust for the benefit of the surviving spouse. By doing so, the first spouse can take full advantage of the marital deduction, which allows for the unlimited transfer of assets between spouses without incurring any estate taxes. The assets transferred to the Nebraska Marital Deduction Trust are then managed by a trustee, who is responsible for distributing income to the surviving spouse for the remainder of their lifetime. This ensures that the surviving spouse has a steady stream of income to support their lifestyle. In addition to the lifetime income provision, the Nebraska Marital Deduction Trust also includes a power of appointment for the beneficiary spouse. This allows the surviving spouse to direct how the remaining trust assets will be distributed upon their death. The spouse can choose to leave the assets to their children, other family members, or even to charity. There are different types of Nebraska Marital Deduction Trusts with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust, including: 1. Irrevocable Marital Deduction Trust: This type of trust cannot be changed or revoked once it is established. It provides maximum tax benefits and ensures that the surviving spouse receives income for life. 2. Revocable Marital Deduction Trust: This trust can be altered or even revoked during the lifetime of the granter. It is a flexible option for couples who may want to make changes to the trust terms as their circumstances evolve. 3. Qualified Terminable Interest Property (TIP) Trust: This trust is specifically designed to provide for a surviving spouse while still allowing the granter to control the ultimate distribution of the assets. It is often used in second marriages or blended families where there is a desire to provide for the current spouse while also protecting assets for other beneficiaries. Overall, the Nebraska Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust is a strategic estate planning tool that combines tax benefits, income provision, and flexibility in asset distribution. It is essential to consult with a qualified estate planning attorney to determine the most suitable type of trust based on individual needs and goals.Nebraska Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust is a legal arrangement designed to maximize tax benefits for married couples in the state of Nebraska. This trust combines two important estate planning tools: the marital deduction trust and the lifetime income trust, along with a power of appointment provision for the beneficiary spouse. The purpose of the Nebraska Marital Deduction Trust is to minimize estate taxes upon the death of the first spouse, while providing income for the surviving spouse and ensuring that the remaining trust assets pass to the desired heirs upon the surviving spouse's death. This trust allows the first spouse to leave assets, up to the maximum amount allowed by the federal and state estate tax laws, to the trust for the benefit of the surviving spouse. By doing so, the first spouse can take full advantage of the marital deduction, which allows for the unlimited transfer of assets between spouses without incurring any estate taxes. The assets transferred to the Nebraska Marital Deduction Trust are then managed by a trustee, who is responsible for distributing income to the surviving spouse for the remainder of their lifetime. This ensures that the surviving spouse has a steady stream of income to support their lifestyle. In addition to the lifetime income provision, the Nebraska Marital Deduction Trust also includes a power of appointment for the beneficiary spouse. This allows the surviving spouse to direct how the remaining trust assets will be distributed upon their death. The spouse can choose to leave the assets to their children, other family members, or even to charity. There are different types of Nebraska Marital Deduction Trusts with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust, including: 1. Irrevocable Marital Deduction Trust: This type of trust cannot be changed or revoked once it is established. It provides maximum tax benefits and ensures that the surviving spouse receives income for life. 2. Revocable Marital Deduction Trust: This trust can be altered or even revoked during the lifetime of the granter. It is a flexible option for couples who may want to make changes to the trust terms as their circumstances evolve. 3. Qualified Terminable Interest Property (TIP) Trust: This trust is specifically designed to provide for a surviving spouse while still allowing the granter to control the ultimate distribution of the assets. It is often used in second marriages or blended families where there is a desire to provide for the current spouse while also protecting assets for other beneficiaries. Overall, the Nebraska Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust is a strategic estate planning tool that combines tax benefits, income provision, and flexibility in asset distribution. It is essential to consult with a qualified estate planning attorney to determine the most suitable type of trust based on individual needs and goals.
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.
