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).
Fulton Georgia Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust is a specific type of trust established under the laws of Fulton County, Georgia. This trust combines the benefits of a marital deduction trust, a lifetime income trust, and a power of appointment trust with a residuary trust component, providing various advantages for the beneficiaries and the estate planning objectives. In this type of trust, the spouse is designated as the beneficiary and is entitled to receive income from the trust for life. The purpose of the marital deduction is to minimize estate taxes by allowing the assets included in the trust to pass to the surviving spouse without incurring any estate tax liability upon the death of the first spouse. This deduction helps preserve the financial well-being of the surviving spouse. Additionally, the trust incorporates a lifetime income provision, ensuring that the surviving spouse receives regular payments from the trust during their lifetime. This income stream provides financial stability and support after the death of the first spouse. Furthermore, the trust includes a power of appointment provision, granting the beneficiary spouse the authority to determine the distribution of trust assets upon their death. This power allows the spouse to control the ultimate disposition of the trust property, which can be directed to children, other family members, or charitable organizations, depending on their wishes. Lastly, the trust incorporates a residuary trust component, which takes effect upon the surviving spouse's death. The residuary trust is created to hold and distribute any remaining assets of the trust that were not consumed during the beneficiary spouse's lifetime. This component ensures that any remaining assets are properly managed and distributed according to the trust's terms and the deceased spouse's intentions. It is important to note that while the Fulton Georgia Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust is a specific designation, there may not be different types of this trust. The name encompasses the various features and provisions described above, which can be customized based on individual circumstances and estate planning goals.Fulton Georgia Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust is a specific type of trust established under the laws of Fulton County, Georgia. This trust combines the benefits of a marital deduction trust, a lifetime income trust, and a power of appointment trust with a residuary trust component, providing various advantages for the beneficiaries and the estate planning objectives. In this type of trust, the spouse is designated as the beneficiary and is entitled to receive income from the trust for life. The purpose of the marital deduction is to minimize estate taxes by allowing the assets included in the trust to pass to the surviving spouse without incurring any estate tax liability upon the death of the first spouse. This deduction helps preserve the financial well-being of the surviving spouse. Additionally, the trust incorporates a lifetime income provision, ensuring that the surviving spouse receives regular payments from the trust during their lifetime. This income stream provides financial stability and support after the death of the first spouse. Furthermore, the trust includes a power of appointment provision, granting the beneficiary spouse the authority to determine the distribution of trust assets upon their death. This power allows the spouse to control the ultimate disposition of the trust property, which can be directed to children, other family members, or charitable organizations, depending on their wishes. Lastly, the trust incorporates a residuary trust component, which takes effect upon the surviving spouse's death. The residuary trust is created to hold and distribute any remaining assets of the trust that were not consumed during the beneficiary spouse's lifetime. This component ensures that any remaining assets are properly managed and distributed according to the trust's terms and the deceased spouse's intentions. It is important to note that while the Fulton Georgia Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust is a specific designation, there may not be different types of this trust. The name encompasses the various features and provisions described above, which can be customized based on individual circumstances and estate planning goals.
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.
