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).
A Suffolk New York Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust is a legal framework established in Suffolk County, New York that allows married couples to strategically plan their estates while maximizing tax benefits for the surviving spouse. The primary purpose of this trust is to provide the surviving spouse with a lifetime income while preserving the assets for the ultimate beneficiaries, typically children or other family members. The trust accomplishes this by creating two distinct components: the Lifetime Income Trust and the Residuary Trust. The Lifetime Income Trust ensures that the surviving spouse has a steady stream of income during their lifetime. This income can be generated from various assets held within the trust, such as investments, real estate, or business interests. The terms of the trust dictate how this income is distributed to the surviving spouse, providing financial security and stability. The Power of Appointment in Beneficiary Spouse is a crucial aspect of this trust. It grants the surviving spouse the authority to determine how the trust assets will be distributed among the ultimate beneficiaries upon their death. This flexibility allows the surviving spouse to consider changing circumstances and make decisions that align with their wishes and current familial dynamics. The Residuary Trust, on the other hand, holds the remaining assets of the trust after the passing of the surviving spouse. This component ensures that the assets are preserved and passed on to the intended beneficiaries, as designated by the surviving spouse through the Power of Appointment. It is important to properly designate these beneficiaries to ensure the assets are distributed according to the surviving spouse's wishes. In summary, a Suffolk New York Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust is a comprehensive estate planning tool that provides income for a surviving spouse while maintaining control over the ultimate distribution of assets. Other types of similar trusts in Suffolk, New York may include the Suffolk New York Marital Deduction Trust with Limited Power of Appointment and the Suffolk New York Marital Deduction Trust with Charitable Remainder Unit rust.A Suffolk New York Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust is a legal framework established in Suffolk County, New York that allows married couples to strategically plan their estates while maximizing tax benefits for the surviving spouse. The primary purpose of this trust is to provide the surviving spouse with a lifetime income while preserving the assets for the ultimate beneficiaries, typically children or other family members. The trust accomplishes this by creating two distinct components: the Lifetime Income Trust and the Residuary Trust. The Lifetime Income Trust ensures that the surviving spouse has a steady stream of income during their lifetime. This income can be generated from various assets held within the trust, such as investments, real estate, or business interests. The terms of the trust dictate how this income is distributed to the surviving spouse, providing financial security and stability. The Power of Appointment in Beneficiary Spouse is a crucial aspect of this trust. It grants the surviving spouse the authority to determine how the trust assets will be distributed among the ultimate beneficiaries upon their death. This flexibility allows the surviving spouse to consider changing circumstances and make decisions that align with their wishes and current familial dynamics. The Residuary Trust, on the other hand, holds the remaining assets of the trust after the passing of the surviving spouse. This component ensures that the assets are preserved and passed on to the intended beneficiaries, as designated by the surviving spouse through the Power of Appointment. It is important to properly designate these beneficiaries to ensure the assets are distributed according to the surviving spouse's wishes. In summary, a Suffolk New York Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust is a comprehensive estate planning tool that provides income for a surviving spouse while maintaining control over the ultimate distribution of assets. Other types of similar trusts in Suffolk, New York may include the Suffolk New York Marital Deduction Trust with Limited Power of Appointment and the Suffolk New York Marital Deduction Trust with Charitable Remainder Unit rust.
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.
