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).
Montgomery Maryland Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust is a specialized type of trust used in estate planning to provide financial security and tax benefits for married couples in Montgomery County, Maryland. Key features of the Montgomery Maryland Marital Deduction Trust include a lifetime income provision for the surviving spouse and a power of appointment granted to the spouse as the beneficiary. Additionally, it also includes a residuary trust component to manage and distribute the remaining assets upon the death of the surviving spouse. Different types of Montgomery Maryland Marital Deduction Trusts with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust can be classified based on their specific conditions and objectives: 1. Revocable Montgomery Maryland Marital Deduction Trust: This type of trust allows the granter to make changes or revoke the trust during their lifetime. It offers flexibility and may be suitable for individuals who want more control over their assets. 2. Irrevocable Montgomery Maryland Marital Deduction Trust: As the name suggests, this type of trust cannot be modified or terminated once established, providing more asset protection and potential tax benefits. It may be beneficial for individuals looking to reduce estate taxes or protect assets from creditors. 3. Qualified Terminable Interest Property (TIP) Trust: This type of trust ensures that the surviving spouse has a lifetime income from the trust assets while allowing the granter to control the ultimate distribution of the remaining assets. It may be used when the granter wants to provide for a current spouse but also ensure that the assets ultimately go to other beneficiaries, such as children from a previous marriage. 4. Charitable Marital Deduction Trust: This variation allows the granter to establish a Montgomery Maryland Marital Deduction Trust that also serves charitable purposes. It provides income for the surviving spouse while designating the remaining assets to be donated to a charitable organization upon the spouse's passing. 5. Testamentary Montgomery Maryland Marital Deduction Trust: This type of trust is created within a will and takes effect upon the granter's death. It ensures that the surviving spouse receives a lifetime income and has the power to appoint the trust assets to other designated beneficiaries. In conclusion, the Montgomery Maryland Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust is a flexible estate planning tool designed to provide financial security and tax benefits to married couples in Montgomery County, Maryland. Various types of this trust exist, allowing individuals to select the most suitable option based on their unique circumstances and goals.Montgomery Maryland Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust is a specialized type of trust used in estate planning to provide financial security and tax benefits for married couples in Montgomery County, Maryland. Key features of the Montgomery Maryland Marital Deduction Trust include a lifetime income provision for the surviving spouse and a power of appointment granted to the spouse as the beneficiary. Additionally, it also includes a residuary trust component to manage and distribute the remaining assets upon the death of the surviving spouse. Different types of Montgomery Maryland Marital Deduction Trusts with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust can be classified based on their specific conditions and objectives: 1. Revocable Montgomery Maryland Marital Deduction Trust: This type of trust allows the granter to make changes or revoke the trust during their lifetime. It offers flexibility and may be suitable for individuals who want more control over their assets. 2. Irrevocable Montgomery Maryland Marital Deduction Trust: As the name suggests, this type of trust cannot be modified or terminated once established, providing more asset protection and potential tax benefits. It may be beneficial for individuals looking to reduce estate taxes or protect assets from creditors. 3. Qualified Terminable Interest Property (TIP) Trust: This type of trust ensures that the surviving spouse has a lifetime income from the trust assets while allowing the granter to control the ultimate distribution of the remaining assets. It may be used when the granter wants to provide for a current spouse but also ensure that the assets ultimately go to other beneficiaries, such as children from a previous marriage. 4. Charitable Marital Deduction Trust: This variation allows the granter to establish a Montgomery Maryland Marital Deduction Trust that also serves charitable purposes. It provides income for the surviving spouse while designating the remaining assets to be donated to a charitable organization upon the spouse's passing. 5. Testamentary Montgomery Maryland Marital Deduction Trust: This type of trust is created within a will and takes effect upon the granter's death. It ensures that the surviving spouse receives a lifetime income and has the power to appoint the trust assets to other designated beneficiaries. In conclusion, the Montgomery Maryland Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust is a flexible estate planning tool designed to provide financial security and tax benefits to married couples in Montgomery County, Maryland. Various types of this trust exist, allowing individuals to select the most suitable option based on their unique circumstances and 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.
