Trusts Qualifying for Marital Deduction

• Author: Seymour Goldberg
• Profession: Senior partner in the law firm of Goldberg & Goldberg, PC in Woodbury, New York
• Pages: 105-107

Selected portions of the Internal Revenue Service (IRS) nal regulations

are provided next.

(1)

On December 30, 2003, the IRS issued nal regulations on the de-

nition for accounting income.

(2)

A portion of the IRS nal regulations focuses in on trusts and the

marital deduction for estate tax and gift tax purposes.

(3)

Regulation Section 20.2056(b)-5 Marital deduction: life estate with

power of appointment in surviving spouse. The estate tax regulation

was amended by adding a new sentence to the end of paragraph (f)

(1). This amendment reads as follows:

In addition, the surviving spouse’s interest shall meet the condition

set forth in paragraph (a)(1) of this section if the spouse is entitled to

income as determined by applicable law that provides for a reason-

able apportionment between the income and remainder beneciaries

of the total return of the trust and that meets the requirements of

section 1.643(b)-1 of the chapter.

(4)

Regulation Section 20.2056(b)-7 Election with respect to life estate

for surviving spouse. The estate tax regulation was amended by add-

ing a new sentence to the end of paragraph (d)(1). This amendment

reads as follows:

A power under applicable law that permits the trustee to adjust

between income and principal to fulll the trustee’s duty of impar-

tiality between the income and remainder beneciaries that meets

the requirements of section 1.643(b)-1 of this chapter will not be

considered a power to appoint trust property to a person other than

the surviving spouse.

105

TRUSTS QUALIFYING FOR

MARITAL DEDUCTION

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