The decedent does not have to be married for five years, just legally married at the time of death. No gift tax return is required for the marital deduction.
A QDOT is a trust that is established by a U.S. citizen decedent to protect the interests of their non-U.S. spouse. It allows the assets of the decedent to pass estate tax exempt into the QDOT through the use of the marital deduction. Assets are taxed in the estate of the second to die non-U.S. spouse.
If the decedent names their spouse as the beneficiary of an IRA, the IRA will pass to the spouse via contract, not under the marital deduction. All of the other choices are common transfer techniques under the marital deduction.
The terminal interest rule was created to prevent the use of the marital deduction if property is passed to a surviving spouse with specific instructions that contingencies or events could affect the treatment of the assets staying within the spouse's estate.
Financial AdvisorAs rules and exemptions tied to the estate tax change, so should your estate plan. Here's why updating it is so important.
Personal FinanceJust because you are in love doesn't mean that a joint return is best for both of you.
RetirementWhen organizing your affairs, you'll need to be aware of tax rates and other regulations.
RetirementSibling battles over their parents' belongings are quite common. But open family discussions before the parent dies can often prevent them.
RetirementA stay-at-home spouse probably racks up more hours working than any office jockey. Make sure he or she is set up to save for retirement, as well.
Financial AdvisorInheritance is a double-edged sword, as leaving money can create estate tax burdens. Opting for a life insurance plan can help mitigate those burdens.
RetirementThis is how disclaimer trusts work and when it makes sense to use them in an estate plan.
TaxesThe tax implications of an inheritance can be complex. Here's what beneficiaries need to know.
RetirementYou don't automatically get your spouse's IRA, 401(k) and other accounts when he or she dies. Here's how to plan so the right survivors get the funds.