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 Clark Nevada Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust is a type of trust that provides various financial and estate planning benefits for married couples in the state of Nevada. This specific trust arrangement combines the advantages of the marital deduction trust, lifetime income provision, and power of appointment in the beneficiary spouse. Additionally, it includes a residuary trust component. The main purpose of the Clark Nevada Marital Deduction Trust is to minimize estate taxes by taking advantage of the marital deduction. Through this trust, one spouse can transfer assets to the trust, which will be considered as a tax-free gift to the other spouse while still allowing the contributing spouse to maintain control over the assets during their lifetime. The lifetime income provision allows the beneficiary spouse to receive regular income from the trust assets throughout their lifetime. This feature ensures financial security and stability for the beneficiary spouse, even after the death of the contributing spouse. Moreover, the power of appointment in the beneficiary spouse gives them the authority to determine the disposition of the trust assets upon their death. They can choose to distribute the assets among their descendants, charities, or any other beneficiaries they designate, providing flexibility and control over the eventual distribution of the trust property. In addition to the above features, the Clark Nevada Marital Deduction Trust may also include a residuary trust. This separate component allows for the establishment of a trust that will be funded with any remaining assets not distributed by the beneficiary spouse through their power of appointment. The residuary trust ensures continuity of wealth preservation and management for future generations. In summary, the Clark Nevada Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust is a comprehensive estate planning tool for couples in Nevada. This trust type combines the benefits of the marital deduction, lifetime income provision, power of appointment, and possible inclusion of a residuary trust to provide tax savings, income security, flexibility, and continuity of wealth management.The Clark Nevada Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust is a type of trust that provides various financial and estate planning benefits for married couples in the state of Nevada. This specific trust arrangement combines the advantages of the marital deduction trust, lifetime income provision, and power of appointment in the beneficiary spouse. Additionally, it includes a residuary trust component. The main purpose of the Clark Nevada Marital Deduction Trust is to minimize estate taxes by taking advantage of the marital deduction. Through this trust, one spouse can transfer assets to the trust, which will be considered as a tax-free gift to the other spouse while still allowing the contributing spouse to maintain control over the assets during their lifetime. The lifetime income provision allows the beneficiary spouse to receive regular income from the trust assets throughout their lifetime. This feature ensures financial security and stability for the beneficiary spouse, even after the death of the contributing spouse. Moreover, the power of appointment in the beneficiary spouse gives them the authority to determine the disposition of the trust assets upon their death. They can choose to distribute the assets among their descendants, charities, or any other beneficiaries they designate, providing flexibility and control over the eventual distribution of the trust property. In addition to the above features, the Clark Nevada Marital Deduction Trust may also include a residuary trust. This separate component allows for the establishment of a trust that will be funded with any remaining assets not distributed by the beneficiary spouse through their power of appointment. The residuary trust ensures continuity of wealth preservation and management for future generations. In summary, the Clark Nevada Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust is a comprehensive estate planning tool for couples in Nevada. This trust type combines the benefits of the marital deduction, lifetime income provision, power of appointment, and possible inclusion of a residuary trust to provide tax savings, income security, flexibility, and continuity of wealth management.
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.
