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).
The South Carolina Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust is an estate planning tool designed to provide financial security and flexibility for married couples residing in South Carolina. This trust combines the benefits of a marital deduction trust, lifetime income, and the power of appointment to offer various options for beneficiaries and ensure the protection and efficient distribution of assets upon the death of the granter. Keywords: South Carolina Marital Deduction Trust, Lifetime Income, Power of Appointment, Beneficiary Spouse, Residuary Trust, estate planning, financial security, married couples, assets, granter, distribution. Different types of South Carolina Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust may include: 1. Traditional South Carolina Marital Deduction Trust: This type of trust allows the granter's assets to be transferred to a trust upon their death, providing the surviving spouse with a lifetime income stream while preserving the estate tax benefits associated with the marital deduction. 2. South Carolina Marital Deduction Trust with Power of Appointment: In this variation, the beneficiary spouse has the power to appoint trust assets among certain individuals or organizations upon their death, providing flexibility and control over the final distribution of the trust assets. 3. South Carolina Marital Deduction Trust with a Residuary Trust: This type of trust establishes a separate trust called the residuary trust, which holds the remaining assets after the beneficiary spouse's lifetime income needs have been satisfied. The residuary trust offers additional protection and control over the distribution of assets to beneficiaries named by the granter. 4. Blended Family South Carolina Marital Deduction Trust: This version of the trust is tailored for couples with children from previous marriages. It aims to provide support for the surviving spouse while ensuring that the granter's assets ultimately pass to their children or chosen beneficiaries. 5. Generation-Skipping South Carolina Marital Deduction Trust: This trust is designed to pass assets to subsequent generations without incurring estate and generation-skipping taxes. It allows the granter to provide income to the surviving spouse while ultimately benefiting grandchildren or other individuals of the granter's choosing. Regardless of the specific type, the South Carolina Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust offers married couples a comprehensive estate planning solution that maximizes tax benefits, ensures financial security, and accommodates their unique circumstances and wishes.The South Carolina Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust is an estate planning tool designed to provide financial security and flexibility for married couples residing in South Carolina. This trust combines the benefits of a marital deduction trust, lifetime income, and the power of appointment to offer various options for beneficiaries and ensure the protection and efficient distribution of assets upon the death of the granter. Keywords: South Carolina Marital Deduction Trust, Lifetime Income, Power of Appointment, Beneficiary Spouse, Residuary Trust, estate planning, financial security, married couples, assets, granter, distribution. Different types of South Carolina Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust may include: 1. Traditional South Carolina Marital Deduction Trust: This type of trust allows the granter's assets to be transferred to a trust upon their death, providing the surviving spouse with a lifetime income stream while preserving the estate tax benefits associated with the marital deduction. 2. South Carolina Marital Deduction Trust with Power of Appointment: In this variation, the beneficiary spouse has the power to appoint trust assets among certain individuals or organizations upon their death, providing flexibility and control over the final distribution of the trust assets. 3. South Carolina Marital Deduction Trust with a Residuary Trust: This type of trust establishes a separate trust called the residuary trust, which holds the remaining assets after the beneficiary spouse's lifetime income needs have been satisfied. The residuary trust offers additional protection and control over the distribution of assets to beneficiaries named by the granter. 4. Blended Family South Carolina Marital Deduction Trust: This version of the trust is tailored for couples with children from previous marriages. It aims to provide support for the surviving spouse while ensuring that the granter's assets ultimately pass to their children or chosen beneficiaries. 5. Generation-Skipping South Carolina Marital Deduction Trust: This trust is designed to pass assets to subsequent generations without incurring estate and generation-skipping taxes. It allows the granter to provide income to the surviving spouse while ultimately benefiting grandchildren or other individuals of the granter's choosing. Regardless of the specific type, the South Carolina Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust offers married couples a comprehensive estate planning solution that maximizes tax benefits, ensures financial security, and accommodates their unique circumstances and wishes.
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.
