This is a trust that will function only in the event the surviving spouse (or his or her estate representative) disclaims the bequest under the will or trust.
The first recipient may wish to disclaim the bequest in favor of the next recipients under the will or trust, very often his children.
Where a beneficiary of property under a will or trust wishes to make a tax free gift to the person who would be the next recipient of such property under the will or trust, he can disclaim the property.
If the spouse disclaims
a fraction of the IRA to fully fund the Bypass trust, the spouse's life expectancy is likely to be used for MRDs.
If his or her financial situation has changed, the survivor can disclaim the retirement benefits when the first spouse dies.
In broad terms, here are the requirements for a surviving spouse to disclaim assets (see IRC section 2518 for more details).
If the spouse disclaims to a B trust and retains the rights as income beneficiary, he or she can receive a steady income and the right to receive discretionary principal distributions for health, maintenance and support.
The "cascade" begins when a financially secure spouse chooses to disclaim either all or a portion of his or her interest as primary beneficiary to the B trust as a contingent beneficiary, then simultaneously disclaims some or all of his or her income interest in the trust to the remainder interest holder (i.
In addition, when nonspouse beneficiaries receive an interest in trust causing the trust to fail to qualify for a qualified terminable interest property (QTIP) election, such beneficiaries may disclaim their interests in such trust in order to qualify the trust for the QTIP election.
Decrease marital deduction: In certain situations, it may be appropriate for a surviving spouse to disclaim bequeathed property in order to reduce the amount of property that qualifies for the marital deduction.
The Bank will not revise or republish the COFI for a given month based on new or corrected data received after that time and expressly disclaims
all liability that may arise as a result.
The surviving spouse proposed to disclaim her contractual survivorship interest in the jointly owned and POD certificates, as well as her right to the CDs she owned outright under her husband's will.
The decedent's children and grandchildren proposed to disclaim their interests so that, under South Carolina intestacy law, the entire corpus would pass to the decedent's surviving spouse.
EMC and Dell disclaim
any obligation to update any forward-looking statements after the date of this release.
Unless otherwise required by law, the Company also disclaims
any obligation to update its view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made here; however, readers should review carefully reports of documents the Company files periodically with the SEC.