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interest property". Under section 2056(b)(7)(A),
"qualified terminable interest property", herein referred
to as QTIP, is treated as passing only to the surviving
spouse, and no part of the property is treated as passing
to any person other than the surviving spouse. Section
2056(b)(7)(B)(i) defines QTIP as follows:
(i) In general.--The term "qualified terminable
interest property" means property--
(I) which passes from the decedent,
(II) in which the surviving spouse has a
qualifying income interest for life, and
(III) to which an election under this paragraph
applies.
A "qualifying income interest for life" is defined by
section 2056(b)(7)(B)(ii) as follows:
(ii) Qualifying income interest for life.--The
surviving spouse has a qualifying income interest
for life if--
(I) the surviving spouse is entitled to
all the income from the property, payable
annually or at more frequent intervals, or
has a usufruct interest for life in the
property, and
(II) no person has a power to appoint any
part of the property to any person other
than the surviving spouse.
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