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claimed for property passing to a surviving spouse where the
interest of a surviving spouse may eventually terminate or fail.
However, section 2056(b)(7) allows a marital deduction for QTIP.
QTIP is defined in section 2056(b)(7)(B)(i)(I)-(III) as property
which passes from the decedent, in which the surviving spouse has
a qualifying income interest for life, and to which an election
applies.
Section 2056(b)(7)(B)(ii)(I) and (II) provides that the
surviving spouse has a qualifying income interest for life if the
surviving spouse is entitled to all the income from the property,
payable annually or at more frequent intervals, and no person has
a power to appoint any part of the property to any person other
than the surviving spouse. Under section 2056(b)(7)(A)(i) and
(ii), QTIP is treated for purposes of section 2056(a) as passing
to the surviving spouse, and for purposes of section
2056(b)(1)(A) as not passing to any person other than the
surviving spouse. Pursuant to section 2056(b)(7)(B)(v), a QTIP
election with respect to any property shall be made by the
executor on the Federal estate tax return, and once made, is
irrevocable.
Section 2044 sets forth the tax treatment of the QTIP in the
estate of the surviving spouse. Under section 2044(a), the value
of the gross estate includes the value of any property to which
this section applies in which the decedent had a qualifying
income interest for life. Section 2044(b)(1)(A) applies section
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Last modified: May 25, 2011