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).
Hennepin Minnesota Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust is a legal trust arrangement that allows married couples residing in Hennepin County, Minnesota to protect their assets and ensure financial security for their spouse. This type of trust includes several key components and benefits. Firstly, the Marital Deduction Trust designates one spouse as the beneficiary, providing them with a lifetime income stream. This ensures that the surviving spouse has a reliable source of income to meet their financial needs. Additionally, the trust incorporates a Power of Appointment, which grants the surviving spouse the authority to distribute the trust's assets among designated beneficiaries upon their death. This power allows the surviving spouse to have control over the final disposition of the assets, ensuring their wishes are fulfilled and protecting the interests of any other beneficiaries specified in the trust. Furthermore, the trust also contains a Residuary Trust component. This means that any remaining assets not distributed through the Power of Appointment will be held in a separate trust for the benefit of other named beneficiaries, such as children or other family members. Different types or variations of the Hennepin Minnesota Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust may include specific provisions tailored to individual circumstances. These may include provisions for specific bequests, charitable giving, or contingencies in case of divorce or remarriage. Overall, the Hennepin Minnesota Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust offers married couples in Hennepin County a comprehensive and customizable estate planning tool to protect their assets, ensure financial stability for their surviving spouse, and facilitate the orderly distribution of their estate according to their wishes.Hennepin Minnesota Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust is a legal trust arrangement that allows married couples residing in Hennepin County, Minnesota to protect their assets and ensure financial security for their spouse. This type of trust includes several key components and benefits. Firstly, the Marital Deduction Trust designates one spouse as the beneficiary, providing them with a lifetime income stream. This ensures that the surviving spouse has a reliable source of income to meet their financial needs. Additionally, the trust incorporates a Power of Appointment, which grants the surviving spouse the authority to distribute the trust's assets among designated beneficiaries upon their death. This power allows the surviving spouse to have control over the final disposition of the assets, ensuring their wishes are fulfilled and protecting the interests of any other beneficiaries specified in the trust. Furthermore, the trust also contains a Residuary Trust component. This means that any remaining assets not distributed through the Power of Appointment will be held in a separate trust for the benefit of other named beneficiaries, such as children or other family members. Different types or variations of the Hennepin Minnesota Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust may include specific provisions tailored to individual circumstances. These may include provisions for specific bequests, charitable giving, or contingencies in case of divorce or remarriage. Overall, the Hennepin Minnesota Marital Deduction Trust with Lifetime Income and Power of Appointment in Beneficiary Spouse and Residuary Trust offers married couples in Hennepin County a comprehensive and customizable estate planning tool to protect their assets, ensure financial stability for their surviving spouse, and facilitate the orderly distribution of their estate according to their wishes.
