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is entitled to “all the income from the property, payable
annually or at more frequent intervals”. Sec. 2056(b)(7)(B)(ii).
A QTIP interest must meet the requirements of section
20.2056(b)-5(f), Estate Tax Regs. Estate of Nicholson v.
Commissioner, supra at 672; sec. 20.2056(b)-7(d)(2), Estate Tax
Regs.; see H. Rept. 97-201, at 161 (1981), 1981-2 C.B. 352, 378.
Section 20.2056(b)-5(f), Estate Tax Regs., provides that a
surviving spouse is entitled to “all the income from the
property” if the effect of the trust is to give her the
equivalent “beneficial enjoyment” of the trust estate as one who
is “unqualifiedly designated as the life beneficiary” under the
principles of the law of trusts. Generally, absent indications
to the contrary, the “designation of the spouse as sole income
beneficiary for life of the entire interest or a specific portion
of the entire interest will be sufficient”. Sec. 20.2056(b)-
5(f)(1), Estate Tax Regs.
An interest passing in trust, however, does not provide that
the surviving spouse is entitled to “all the income” to the
extent that the income may be accumulated in the discretion of
any person other than the surviving spouse or to the extent that
the consent of any person other than the surviving spouse is
required for distribution of the income. Sec. 20.2056(b)-
5(f)(7), Estate Tax Regs. Additionally, the terms “entitled for
life” and “payable annually or more frequent intervals” require
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