IRS Rejects UPIA 10 Percent Rule

If an asset is to qualify for the federal estate tax marital deduction as qualified terminal interest property (QTIP), the decedent's surviving spouse must be entitled to all of the income for life from such asset.1 When an individual retirement account (IRA)2 is payable to a marital trust as beneficiary, what is the the spouse must be entitled to with respect to the IRA? The Internal Revenue Service

Natalie B. Choate | Jul 01, 2006

If an asset is to qualify for the federal estate tax marital deduction as qualified terminal interest property (QTIP), the decedent's surviving spouse must be entitled to all of the income for life from such asset.¹ When an individual retirement account (IRA)² is payable to a marital trust as beneficiary, what is the “income” the spouse must be entitled to with respect to the IRA? The Internal Revenue Service has answered this question in Revenue Ruling 2006-26,^3<

All access premium subscription

Please Log in if you are currently a Trusts & Estates subscriber.

If you are interested in becoming a subscriber with unlimited article access, please select Subscription Options below.

Questions about your account or how to access content?

Contact: [email protected]

Hide comments

Load More

Comments

Plain text