marital deduction estate tax

• U.S. Tax Court Rules Woman's Estate Includes Marital Deduction

A woman's estate for federal tax purposes included the amount for which the estate of her predeceased husband claimed a marital deduction, the U.S. Tax Court has ruled. The woman's husband established a qualified terminal interest property (QTIP) trust for her benefit.

• Lawyers USA
• June 02, 2009

• IRS loses estate tax marital deduction case.

The US Court of Appeals for the Sixth Circuit has sided with the Fifth and Eighth Circuits and against the Tax Court and IRS in finding in Estate of Spencer that discretionary authority to elect the amounts to pass into a qualified terminable interest property (QTIP) trust did not bar use of the marital deduction for the QTIP assets. The Tax Court had ruled that the property did not pass from the decedent to the spouse because she had a power of appointment. Estate planners should excercise caution if allowing the executor to elect how to allocate assets among trusts.

• The Tax Adviser
• Vol. 27 Nbr. 2, February 1996

• Commentary: The Real Cost of Doma

Your spouse, whom you have cherished more than 40 years and whom you married two years ago, dies. You deeply mourn her passing. She leaves you all of her property, worth $4.5 million. You are the executor of her estate. You need to file a federal estate tax return but figure to claim the marital deduction on the property passing to you. The deduction will eliminate all estate tax, federal and state.

• Daily Record (Rochester, NY)
• December 07, 2010

• Significant recent developments in estate planning.

Part 2 A survey of 1993-94 cases and revenue rulings focuses on changes in the marital deduction, valuation and special use valuation laws. Decisions involving the estate tax marital deduction focused on qualified terminable interest property elections, restrictions on property interests and assets held in certain pools and trusts. Valuation rulings considered valuation methods, discounts in valuation, safe harbors and the effect of partnership agreements on partnership interest valuation. Special use valuation cases addressed qualified use, disclaimers and IRC section 2032A recapture.

• The Tax Adviser
• Vol. 25 Nbr. 11, November 1994

• Commissioner v. Estate of Hubert, 520 U.S. 93 (1997)

... by the estate's asserted entitlement to marital and charitable deductions. While the estate's rede...

• U.S. Supreme Court

• Divided Tax Court now allows estate tax marital deduction for QTIP property contingent on executor's QTIP election for estates of decedents dying before Mar. 2, 1994.

Qualified terminable interest property - Brief Article

• The Tax Adviser
• Vol. 27 Nbr. 5, May 1996

• Best Way to Beat Uncle Sam Is to Give It Away Now

Don't be morbid or mawkish about your ultimate demise -- the best time to give away money is while you're still living. Many people are under the impression that if they die, the unlimited marital deduction will protect their surviving spouse from federal estate taxes," said Ann Koenigsman, tax manager, Stockman, Kast, Ryan & Co.

• Colorado Springs Business Journal
• September 03, 2008

• Year-End Tax Guide For 2011 - Part 3.

...First, there are deductions and credits for education expenses, including the ...A 529 plan can be a powerful estate planning tool for parents or grandparents. Contrib.... The estate tax allows unlimited marital deductions for transfers between spouses. Your est...

• Mondaq Business Briefing
• Nbr. 2012, January 2012

• Allocation of IRD deduction to surviving spouse with no estate tax liability.

Income in respect of a decedent Proper allocation of income in respect of a decedent (IRD) deductions under IRC section 691(c) only matters when the surviving spouse is not the only recipient of IRD and there is estate tax liability. If the marital deduction is not fully used and estate tax is paid, the surviving spouse may receive an IRD deduction despite not paying any taxes. This can result in other heirs bearing a disproportionate percentage of IRD tax liability without receiving appropriate deductions.

• The Tax Adviser
• Vol. 26 Nbr. 8, August 1995

• Joint ownership of property: two's company, but is three a crowd?

The treatment of a three-way joint tenancy with right of survivorship (JTWROS) ownership of property is considered a very problematic area in estate planning due to its complexities. Generally, accountants working on such an arrangement need to address two key issues, namely, the degree of includability of the JTWROS in the decedent spouse's gross estate and the amount of the property which can avail of the Federal estate tax marital deduction. It is important for practitioners to have an adequate knowledge of rules governing this type of ownership arrangement so that these issues can be effectively dealt with.

• The National Public Accountant
• Vol. 39 Nbr. 1, January 1994