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 Tennessee Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust is a type of estate planning tool used to protect assets and provide financial security for a surviving spouse while also ensuring the efficient transfer of those assets to other beneficiaries upon the surviving spouse's death. In simple terms, this trust allows a married couple to designate certain assets into a trust, with the surviving spouse as the primary beneficiary, who will receive a lifetime income from the trust. The surviving spouse also has the power to appoint the remaining trust assets to other beneficiaries upon their death. This arrangement ensures that the surviving spouse has income during their lifetime while still maintaining control over who will receive the remaining assets. Keywords: Tennessee Marital Deduction Trust, Lifetime Income, Power of Appointment, Beneficiary Spouse, Residuary Trust, Estate Planning, Assets, Surviving spouse, Income, Beneficiaries. Different types of Tennessee Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust can include variations based on the specific wishes and needs of the married couple. Some potential variations could include: 1. Tennessee Marital Deduction Trust with Lifetime Income and Special Needs Power of Appointment: This type of trust would allow the surviving spouse to have the power of appointment, but with a specific focus on providing for any special needs beneficiaries identified by the couple. 2. Tennessee Marital Deduction Trust with Lifetime Income and Charitable Power of Appointment: In this variation, the surviving spouse has the power to appoint a portion of the trust assets to charitable organizations or causes, allowing for philanthropic endeavors to be included in the distribution of the assets. 3. Tennessee Marital Deduction Trust with Lifetime Income and Generation-Skipping Power of Appointment: This type of trust enables the surviving spouse to appoint the remaining assets to skip a generation and distribute them directly to grandchildren or other beneficiaries, potentially reducing estate taxes. 4. Tennessee Marital Deduction Trust with Lifetime Income and Portability Power of Appointment: In this variation, the surviving spouse has the power to transfer the unused portion of their estate tax exemption to the next generation, maximizing the overall estate tax benefits for the family. By tailoring the provisions of the Tennessee Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust to their specific needs, couples can create a personalized estate plan that meets their goals of providing for their surviving spouse while efficiently transferring assets to chosen beneficiaries.A Tennessee Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust is a type of estate planning tool used to protect assets and provide financial security for a surviving spouse while also ensuring the efficient transfer of those assets to other beneficiaries upon the surviving spouse's death. In simple terms, this trust allows a married couple to designate certain assets into a trust, with the surviving spouse as the primary beneficiary, who will receive a lifetime income from the trust. The surviving spouse also has the power to appoint the remaining trust assets to other beneficiaries upon their death. This arrangement ensures that the surviving spouse has income during their lifetime while still maintaining control over who will receive the remaining assets. Keywords: Tennessee Marital Deduction Trust, Lifetime Income, Power of Appointment, Beneficiary Spouse, Residuary Trust, Estate Planning, Assets, Surviving spouse, Income, Beneficiaries. Different types of Tennessee Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust can include variations based on the specific wishes and needs of the married couple. Some potential variations could include: 1. Tennessee Marital Deduction Trust with Lifetime Income and Special Needs Power of Appointment: This type of trust would allow the surviving spouse to have the power of appointment, but with a specific focus on providing for any special needs beneficiaries identified by the couple. 2. Tennessee Marital Deduction Trust with Lifetime Income and Charitable Power of Appointment: In this variation, the surviving spouse has the power to appoint a portion of the trust assets to charitable organizations or causes, allowing for philanthropic endeavors to be included in the distribution of the assets. 3. Tennessee Marital Deduction Trust with Lifetime Income and Generation-Skipping Power of Appointment: This type of trust enables the surviving spouse to appoint the remaining assets to skip a generation and distribute them directly to grandchildren or other beneficiaries, potentially reducing estate taxes. 4. Tennessee Marital Deduction Trust with Lifetime Income and Portability Power of Appointment: In this variation, the surviving spouse has the power to transfer the unused portion of their estate tax exemption to the next generation, maximizing the overall estate tax benefits for the family. By tailoring the provisions of the Tennessee Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust to their specific needs, couples can create a personalized estate plan that meets their goals of providing for their surviving spouse while efficiently transferring assets to chosen beneficiaries.
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.
