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 New Jersey Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust is an estate planning tool utilized by individuals in the state of New Jersey to provide financial security and tax benefits for their spouse after their passing. This trust type effectively combines the benefits of a marital deduction trust, lifetime income trust, and power of appointment trust. In a New Jersey Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust, the testator (the person creating the trust) designates their spouse as the primary beneficiary of the trust. The purpose of this trust is to ensure the surviving spouse receives income and benefits from the assets while maintaining the ability to appoint these remaining assets to other beneficiaries upon their death. One of the key advantages of this trust is the ability to minimize estate taxes. By utilizing the marital deduction provision, the assets placed within the trust are not subject to federal estate tax upon the death of the first spouse. Instead, they are included in the estate of the surviving spouse, who may further reduce their taxable estate by utilizing their applicable exclusion amount. Additionally, this trust type provides a steady stream of income for the surviving spouse during their lifetime. The trust agreement typically outlines specific provisions on how the income is to be distributed, ensuring the spouse has financial support. Moreover, the surviving spouse is granted a power of appointment, allowing them to designate how the remaining assets will be distributed upon their death. This power provides flexibility to choose the ultimate beneficiaries, including other family members, charitable organizations, or even subsequent trusts. Within the realm of New Jersey Marital Deduction Trusts with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust, there can be variations based on specific objectives and preferences. Some of these variations may include testamentary trusts (created in a will and activated upon the death of the testator) or revocable living trusts (created during the lifetime of the testator and changeable). These variations offer different levels of flexibility, control, and tax planning options based on individual circumstances and goals. Overall, a New Jersey Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust provides a comprehensive solution for estate planning, tax minimization, asset management, and flexibly passing on wealth to desired beneficiaries while ensuring financial security for a surviving spouse in the state of New Jersey.A New Jersey Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust is an estate planning tool utilized by individuals in the state of New Jersey to provide financial security and tax benefits for their spouse after their passing. This trust type effectively combines the benefits of a marital deduction trust, lifetime income trust, and power of appointment trust. In a New Jersey Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust, the testator (the person creating the trust) designates their spouse as the primary beneficiary of the trust. The purpose of this trust is to ensure the surviving spouse receives income and benefits from the assets while maintaining the ability to appoint these remaining assets to other beneficiaries upon their death. One of the key advantages of this trust is the ability to minimize estate taxes. By utilizing the marital deduction provision, the assets placed within the trust are not subject to federal estate tax upon the death of the first spouse. Instead, they are included in the estate of the surviving spouse, who may further reduce their taxable estate by utilizing their applicable exclusion amount. Additionally, this trust type provides a steady stream of income for the surviving spouse during their lifetime. The trust agreement typically outlines specific provisions on how the income is to be distributed, ensuring the spouse has financial support. Moreover, the surviving spouse is granted a power of appointment, allowing them to designate how the remaining assets will be distributed upon their death. This power provides flexibility to choose the ultimate beneficiaries, including other family members, charitable organizations, or even subsequent trusts. Within the realm of New Jersey Marital Deduction Trusts with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust, there can be variations based on specific objectives and preferences. Some of these variations may include testamentary trusts (created in a will and activated upon the death of the testator) or revocable living trusts (created during the lifetime of the testator and changeable). These variations offer different levels of flexibility, control, and tax planning options based on individual circumstances and goals. Overall, a New Jersey Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust provides a comprehensive solution for estate planning, tax minimization, asset management, and flexibly passing on wealth to desired beneficiaries while ensuring financial security for a surviving spouse in the state of New Jersey.
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.
