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).
Chicago Illinois Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust is a type of trust specifically designed for married couples residing in the city of Chicago, Illinois. This trust allows the spouse who establishes the trust, known as the granter, to provide financial security and control over their assets to their surviving spouse while also ensuring the proper distribution of assets upon the surviving spouse's death. The main objective of the Chicago Illinois Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust is to minimize estate taxes and maximize the potential benefits for both spouses. By structuring the trust in this way, the granter can take advantage of the marital deduction, which allows unlimited tax-free transfers of assets between spouses during their lifetimes. Key features of this trust include the lifetime income provision, where the surviving spouse is entitled to receive income from the trust for the remainder of their life. This ensures financial stability and support for the surviving spouse. Furthermore, the surviving spouse also has the power of appointment, empowering them to direct how the remaining trust assets will be distributed among the beneficiaries upon their passing. In addition to these essential elements, there are several variations or types of Chicago Illinois Marital Deduction Trusts with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trusts, including: 1. Testamentary Marital Deduction Trust: This type of trust is established through a will, and it takes effect upon the granter's death. It provides various tax benefits while ensuring the surviving spouse's financial well-being. 2. Qualified Terminable Interest Property (TIP) Trust: This trust allows the granter to provide income and support for their surviving spouse while maintaining control over how the remaining trust assets are distributed after the surviving spouse's death. It is commonly used when the granter has children from a previous marriage. 3. Revocable Living Trust: This type of trust allows the granter to have control over their assets throughout their lifetime while ensuring a smooth transfer of assets to the surviving spouse, eliminating probate and reducing estate taxes. By establishing a Chicago Illinois Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust, married couples can protect their assets, minimize estate taxes, and provide financial security for their surviving spouse. It is crucial to consult with an experienced attorney or estate planner familiar with Illinois laws to determine the most suitable trust structure for individual circumstances.Chicago Illinois Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust is a type of trust specifically designed for married couples residing in the city of Chicago, Illinois. This trust allows the spouse who establishes the trust, known as the granter, to provide financial security and control over their assets to their surviving spouse while also ensuring the proper distribution of assets upon the surviving spouse's death. The main objective of the Chicago Illinois Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust is to minimize estate taxes and maximize the potential benefits for both spouses. By structuring the trust in this way, the granter can take advantage of the marital deduction, which allows unlimited tax-free transfers of assets between spouses during their lifetimes. Key features of this trust include the lifetime income provision, where the surviving spouse is entitled to receive income from the trust for the remainder of their life. This ensures financial stability and support for the surviving spouse. Furthermore, the surviving spouse also has the power of appointment, empowering them to direct how the remaining trust assets will be distributed among the beneficiaries upon their passing. In addition to these essential elements, there are several variations or types of Chicago Illinois Marital Deduction Trusts with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trusts, including: 1. Testamentary Marital Deduction Trust: This type of trust is established through a will, and it takes effect upon the granter's death. It provides various tax benefits while ensuring the surviving spouse's financial well-being. 2. Qualified Terminable Interest Property (TIP) Trust: This trust allows the granter to provide income and support for their surviving spouse while maintaining control over how the remaining trust assets are distributed after the surviving spouse's death. It is commonly used when the granter has children from a previous marriage. 3. Revocable Living Trust: This type of trust allows the granter to have control over their assets throughout their lifetime while ensuring a smooth transfer of assets to the surviving spouse, eliminating probate and reducing estate taxes. By establishing a Chicago Illinois Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust, married couples can protect their assets, minimize estate taxes, and provide financial security for their surviving spouse. It is crucial to consult with an experienced attorney or estate planner familiar with Illinois laws to determine the most suitable trust structure for individual circumstances.
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.
