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this case would lie to the U.S. Court of Appeals for the Seventh
Circuit, which has not yet spoken on this particular QTIP issue.
I
QTIP Issue
Section 2056(b)(7)(A) provides that for purposes of the
marital deduction, in the case of "qualified terminable interest
property", the entire property is treated as passing to the
surviving spouse and no part of the property is treated as
passing to any person other than the surviving spouse. Thus, for
qualified terminable interest property, the decedent's estate may
deduct as a marital deduction the value of the entire property,
not just the surviving spouse's "qualifying income interest for
life" in that property.
Section 2056(b)(7)(B) defines "qualified terminable interest
property". Section 2056(b)(7)(B)(i) sets out the three general
requirements--that it be property (1) which passes from the
decedent, (2) in which the surviving spouse has a qualifying
income interest for life, and (3) to which an election under this
paragraph applies. Section 2056(b)(7)(B)(ii) then defines
"qualifying income interest for life". Section
2056(b)(7)(B)(iii), (iv), and (v) sets out other definitions or
requirements of qualified terminable interest property. I agree
that all of section 2056(b)(7)(B) defines qualified terminable
interest property and must be read as a whole. This Court in its
Clayton-Robertson-Spencer opinions concluded, and I continue to
think properly so, that the election provision of section
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