Which of the following property interests qualify for the marital deduction from

Question

Which of the following property interests qualify for the marital deduction from the deceased spouse’s gross estate?  D = decedent; SS = surviving spouse; FS= former spouse

1. The value of D’s revocable trust naming SS as the trust beneficiary after D’s death;

2.D was owner of a whole-life insurance policy on SS’s life, and the policy named SS as the contingent owner upon D’s death;

3. A painting that D and his former wife FS, purchased on their honeymoon that D bequeathed to FS;

4. D was the recipient of a life estate that his father gave him in the family cottage in Florida. The residuary clause in D’swill left the rest and residue of his estate to his wife, SS;

5. A terminable interest trust that paid SS all income annually for life, and executor elected to qualify the trust for the marital deduction on the wife’s estate tax return;

6. The lifetime income interest the SS received from a testamentary trust with power to invade the trust corpus;

7. Property the SS received through the state’s elective share statute;

8. A vacation home the SS received from D that allows SS to use the property for life, and at SS’s death, the property passes to D’s son from a previous marriage as D directed.

Explanation / Answer

For a marital deduction to take effect, the property must be transferred to the surviving spouse and not the former spouse. The husband wife relationship must exist at the time of death. Hence the following will come under this purview :

1. Since ss has been named as trust beneficiary, it will qualify for deduction.

2. This will also qualify for deduction since ss has been declared the contingent owner of policy.

3. This will not qualify for marital deduction as painting has been transferred to FS. Husband wife relationship didn't exist at the time of death.

4. This will qualify for deduction as D left the residue to his wife the ss.

5. This has been already qualified for deduction by the executor.

6. This will also qualify as deduction as ss is the beneficiary of the trust.

7. This will not qualify for deduction since no transfer from D is involved.

8. This will qualify for marital deduction as ss gets to use the property till her lifetime.

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.