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 Harris Texas Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust is a type of trust arrangement designed to provide financial security and flexibility for married couples in the state of Texas. This trust allows one spouse to leave assets for the benefit of the surviving spouse while also maintaining control over the distribution of those assets. The primary purpose of the Harris Texas Marital Deduction Trust is to take advantage of the marital deduction, a provision in the federal tax code that allows the transfer of assets between spouses without incurring estate or gift taxes. By creating this trust, the first spouse can transfer assets to the trust for the benefit of the surviving spouse, effectively deferring any estate taxes until the surviving spouse's death. The Lifetime Income aspect of the trust ensures that the surviving spouse will receive regular income payments for the rest of their life. These income distributions are often structured in a way that will maximize tax advantages for the surviving spouse, thereby increasing the amount of income they can retain. Additionally, the Power of Appointment feature in the trust allows the surviving spouse to have some control over the distribution of the trust's assets upon their death. This gives the surviving spouse the ability to direct how the assets will be distributed among their beneficiaries, such as children or other family members. The Residuary Trust component of the Harris Texas Marital Deduction Trust refers to the remaining assets in the trust after the surviving spouse's death. These assets are distributed among the designated beneficiaries according to the terms and conditions set forth in the trust document. While there might not be different specific types of the Harris Texas Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust, it is worth mentioning that there can be variations and modifications made to the trust based on individual circumstances, goals, and preferences. It is important to work with an experienced estate planning attorney to tailor the trust to fit your specific needs. In summary, the Harris Texas Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust is a comprehensive estate planning tool for married couples in Texas, offering tax advantages, lifetime income for the surviving spouse, and flexibility in asset distribution.The Harris Texas Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust is a type of trust arrangement designed to provide financial security and flexibility for married couples in the state of Texas. This trust allows one spouse to leave assets for the benefit of the surviving spouse while also maintaining control over the distribution of those assets. The primary purpose of the Harris Texas Marital Deduction Trust is to take advantage of the marital deduction, a provision in the federal tax code that allows the transfer of assets between spouses without incurring estate or gift taxes. By creating this trust, the first spouse can transfer assets to the trust for the benefit of the surviving spouse, effectively deferring any estate taxes until the surviving spouse's death. The Lifetime Income aspect of the trust ensures that the surviving spouse will receive regular income payments for the rest of their life. These income distributions are often structured in a way that will maximize tax advantages for the surviving spouse, thereby increasing the amount of income they can retain. Additionally, the Power of Appointment feature in the trust allows the surviving spouse to have some control over the distribution of the trust's assets upon their death. This gives the surviving spouse the ability to direct how the assets will be distributed among their beneficiaries, such as children or other family members. The Residuary Trust component of the Harris Texas Marital Deduction Trust refers to the remaining assets in the trust after the surviving spouse's death. These assets are distributed among the designated beneficiaries according to the terms and conditions set forth in the trust document. While there might not be different specific types of the Harris Texas Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust, it is worth mentioning that there can be variations and modifications made to the trust based on individual circumstances, goals, and preferences. It is important to work with an experienced estate planning attorney to tailor the trust to fit your specific needs. In summary, the Harris Texas Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust is a comprehensive estate planning tool for married couples in Texas, offering tax advantages, lifetime income for the surviving spouse, and flexibility in asset distribution.
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.
