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this paragraph applies.
(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, * * * and
(II) no person has a power to
appoint any part of the property to any
person other than the surviving spouse.
A QTIP interest is one in which a decedent passes to the
surviving spouse a “qualifying income interest for life” and for
which an election has been made. Sec. 2056(b)(7)(B)(i); Estate
of Nicholson v. Commissioner, supra. Generally, when the
surviving spouse has a “qualifying income interest for life”, she
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
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