Term
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Definition
| A person who is not a US citizen but does reside in the United States. Such an individual may receive transfers from a spouse qualifying for a marital deduction from estate or gift taxes only under specific circumstances. |
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Term
Qualified Domestic Trust
(QDOT) |
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Definition
| A trust that meets the requirements for a marital deduction for property left to a surviving resident-alien-spouse by a decedent citizen-spouse. |
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Term
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Definition
| Rule that allows the marital deduction to apply to a decedent spouse's property only when the nature of the property or the interest in property passing to the surviving spouse is such that, if retained until the surviving spouse's death, it will be taxed in the surviving spouse's estate. |
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Term
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Definition
| A property right created (or reserved) by the donor of the power enabling the donee of the power to designate, within such limits as the donor has prescribed, who will be the transferees of the property. |
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Term
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Definition
| A testamentary trust designed to keep property transferred to it by the decedent-spouse out of the surviving spouse's gross estate. |
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Term
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Definition
| A type of trust commonly used to qualify property for the marital deduction. The surviving spouse is given an interest for life and the remainder is payable to the surviving spouse's estate. |
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Term
Qualified Terminable-Interest Property
(QTIP) |
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Definition
| A property that falls under an exception to the terminable interest rule of the figt and estate law by allowing a marital deduction to a transferor spouse (or a transferor spouse's estate) for the toal value of a gift or bequest of property for the transferee spouse's life benefit, even if he or she receives only a qualifying income interest for life, with all other interests passing to third parties. |
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Term
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Definition
| Underutilization of an estate owner's applicable credit amount. |
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Term
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Definition
| Overutilization of an estate owner's applicable credit amount. |
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Term
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Definition
| Clause in wills that can provide, by formula, an amount or share of the estate that effectively utilizes the estate owner's applicable credit amount and coordinates it with the unlimited marital deduction. |
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Term
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Definition
| A provision in a will under which one spouse gives the surviving spouse a dollar amount, taking into consideration not only property passing under the will but also all property qualifying for the marital deduction. |
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Term
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Definition
| A provision in a will under which a spouse gives a graction of his or her residuary estate that is sufficient to reduce the federal estate tax (after applicable credits) to the lowest possible amount. |
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