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 Oklahoma Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust is a legal arrangement that allows married couples in Oklahoma to establish a trust that can provide financial security and flexibility for their surviving spouse while still preserving their estate's value for future beneficiaries. This type of trust is commonly used in estate planning to take advantage of tax benefits and ensure the financial well-being of the surviving spouse. The Oklahoma Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust allows the granter (the person establishing the trust) to transfer assets into the trust while maintaining control over the distribution and management of those assets during their lifetime. The trust provides the granter's surviving spouse with a lifetime income from the trust's assets, ensuring that they are financially supported throughout their life. Additionally, the trust includes a power of appointment, which allows the surviving spouse to decide how the remaining assets will be distributed among their chosen beneficiaries upon their death. There are various types of Oklahoma Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust, each tailored to the unique needs and goals of the couple. Some different types include: 1. Marital Deduction Trust with Qualified Terminable Interest Property (TIP): This trust type allows the granter to leave assets to their surviving spouse while ensuring that the remaining assets are not subject to estate taxes. It provides the surviving spouse with income during their lifetime and allows them to have control over the distribution of assets upon their death. 2. Marital Deduction Trust with Charitable Remainder Unit rust (CUT): This trust combines the marital deduction with charitable giving. It provides income to the surviving spouse and, upon their death, the remaining assets are distributed to a specified charity or charities. 3. Marital Deduction Trust with Special Needs Trust: This type of trust is designed for couples who have a dependent with special needs. It ensures that the surviving spouse has access to income while also providing for the ongoing care and support of the dependent with special needs. 4. Marital Deduction Trust with Credit Shelter Trust: This trust type allows couples to maximize the use of their individual estate tax exemptions. It provides the surviving spouse with income while preserving the granter's estate tax exemption, thus minimizing estate taxes upon the surviving spouse's death. In conclusion, the Oklahoma Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust is a flexible and effective estate planning tool that provides financial security for the surviving spouse while preserving the estate's value for future generations. With various types available, couples can choose the trust that best suits their unique needs and goals.The Oklahoma Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust is a legal arrangement that allows married couples in Oklahoma to establish a trust that can provide financial security and flexibility for their surviving spouse while still preserving their estate's value for future beneficiaries. This type of trust is commonly used in estate planning to take advantage of tax benefits and ensure the financial well-being of the surviving spouse. The Oklahoma Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust allows the granter (the person establishing the trust) to transfer assets into the trust while maintaining control over the distribution and management of those assets during their lifetime. The trust provides the granter's surviving spouse with a lifetime income from the trust's assets, ensuring that they are financially supported throughout their life. Additionally, the trust includes a power of appointment, which allows the surviving spouse to decide how the remaining assets will be distributed among their chosen beneficiaries upon their death. There are various types of Oklahoma Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust, each tailored to the unique needs and goals of the couple. Some different types include: 1. Marital Deduction Trust with Qualified Terminable Interest Property (TIP): This trust type allows the granter to leave assets to their surviving spouse while ensuring that the remaining assets are not subject to estate taxes. It provides the surviving spouse with income during their lifetime and allows them to have control over the distribution of assets upon their death. 2. Marital Deduction Trust with Charitable Remainder Unit rust (CUT): This trust combines the marital deduction with charitable giving. It provides income to the surviving spouse and, upon their death, the remaining assets are distributed to a specified charity or charities. 3. Marital Deduction Trust with Special Needs Trust: This type of trust is designed for couples who have a dependent with special needs. It ensures that the surviving spouse has access to income while also providing for the ongoing care and support of the dependent with special needs. 4. Marital Deduction Trust with Credit Shelter Trust: This trust type allows couples to maximize the use of their individual estate tax exemptions. It provides the surviving spouse with income while preserving the granter's estate tax exemption, thus minimizing estate taxes upon the surviving spouse's death. In conclusion, the Oklahoma Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust is a flexible and effective estate planning tool that provides financial security for the surviving spouse while preserving the estate's value for future generations. With various types available, couples can choose the trust that best suits their unique needs and goals.
