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).
Franklin Ohio Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust is a type of estate planning tool that offers various benefits for married couples in Franklin, Ohio. This comprehensive trust combines the advantages of a marital deduction trust, lifetime income for the beneficiary spouse, and the power of appointment to ensure flexibility and control over the assets within the trust. The primary purpose of the Franklin Ohio Marital Deduction Trust is to provide financial security and asset protection for the surviving spouse while allowing them to enjoy a stable stream of income for their lifetime. This trust is particularly advantageous when it comes to minimizing estate taxes since the assets placed in the trust qualify for the marital deduction under the Internal Revenue Code. This deduction allows the assets to pass from the deceased spouse to the trust without incurring any estate taxes. Within the trust, the beneficiary spouse has the right to receive income generated by the trust assets during their lifetime. This income can be structured to cater to the specific needs and financial goals of the surviving spouse. The trustee, who is usually a competent financial professional or a trusted individual, manages the trust assets and ensures regular distributions to the beneficiary spouse as per the terms outlined in the trust agreement. One notable feature of the Franklin Ohio Marital Deduction Trust is the power of appointment granted to the beneficiary spouse. This power allows the surviving spouse to determine how any remaining assets within the trust will be distributed upon their death. They have the authority to designate the beneficiaries, including children, grandchildren, or other loved ones, while also considering any tax implications that may arise from their decisions. This flexibility is particularly valuable as it allows the surviving spouse to adapt the trust to changing circumstances and family dynamics. It is worth noting that the Franklin Ohio Marital Deduction Trust is just one variation of this type of trust. There are several other kinds available, depending on specific needs and objectives. Some examples include the Franklin Ohio Marital Deduction Trust with Fixed Income Payments, the Franklin Ohio Marital Deduction Trust with Charitable Remainder, and the Franklin Ohio Marital Deduction Trust with Charitable Lead. Each trust variation has its own unique characteristics and benefits, catering to different personal and financial circumstances. In conclusion, the Franklin Ohio Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust is a powerful estate planning tool that offers tax advantages, lifetime income for the surviving spouse, and flexibility in asset distribution. It provides a comprehensive solution to protect and preserve family wealth while allowing for customization based on individual needs and objectives.Franklin Ohio Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust is a type of estate planning tool that offers various benefits for married couples in Franklin, Ohio. This comprehensive trust combines the advantages of a marital deduction trust, lifetime income for the beneficiary spouse, and the power of appointment to ensure flexibility and control over the assets within the trust. The primary purpose of the Franklin Ohio Marital Deduction Trust is to provide financial security and asset protection for the surviving spouse while allowing them to enjoy a stable stream of income for their lifetime. This trust is particularly advantageous when it comes to minimizing estate taxes since the assets placed in the trust qualify for the marital deduction under the Internal Revenue Code. This deduction allows the assets to pass from the deceased spouse to the trust without incurring any estate taxes. Within the trust, the beneficiary spouse has the right to receive income generated by the trust assets during their lifetime. This income can be structured to cater to the specific needs and financial goals of the surviving spouse. The trustee, who is usually a competent financial professional or a trusted individual, manages the trust assets and ensures regular distributions to the beneficiary spouse as per the terms outlined in the trust agreement. One notable feature of the Franklin Ohio Marital Deduction Trust is the power of appointment granted to the beneficiary spouse. This power allows the surviving spouse to determine how any remaining assets within the trust will be distributed upon their death. They have the authority to designate the beneficiaries, including children, grandchildren, or other loved ones, while also considering any tax implications that may arise from their decisions. This flexibility is particularly valuable as it allows the surviving spouse to adapt the trust to changing circumstances and family dynamics. It is worth noting that the Franklin Ohio Marital Deduction Trust is just one variation of this type of trust. There are several other kinds available, depending on specific needs and objectives. Some examples include the Franklin Ohio Marital Deduction Trust with Fixed Income Payments, the Franklin Ohio Marital Deduction Trust with Charitable Remainder, and the Franklin Ohio Marital Deduction Trust with Charitable Lead. Each trust variation has its own unique characteristics and benefits, catering to different personal and financial circumstances. In conclusion, the Franklin Ohio Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust is a powerful estate planning tool that offers tax advantages, lifetime income for the surviving spouse, and flexibility in asset distribution. It provides a comprehensive solution to protect and preserve family wealth while allowing for customization based on individual needs and objectives.
