First, certain assets, such as an individual retirement account, are for income tax reasons often inappropriate to leave to a credit shelter trust if they can be left outfight to the surviving spouse
without current or future estate tax (that is, through portability).
Under a "qualified terminable interest property (QTIP) trust," the surviving spouse
must be entitled for life to all the income (see Q 863).
The disclaimer trust would come into being only if the surviving spouse
disclaimed, or refused to accept, a portion of the estate under the will.
When the surviving spouse
died there would only be one nil rate band available.
While some surviving spouses
may welcome the in come, all too frequently this income only increases the tax liability for the surviving spouse
A pension pays a set monthly amount for the rest of the person's life, but often there is a survivor benefit that allows the person's surviving spouse
to continue to receive a check after the pensioner dies.
For both income tax and estate tax purposes, the selection of the surviving spouse
usually provides the most tax deferral opportunities.
2017-34 docs not extend the time for the surviving spouse
or the spouse's estate to file a refund claim.
When a Justice of the Supreme Court, the Court of Appeals, the Sandiganbayan or of the Court of Tax Appeals, or a Judge of the regional trial court, metropolitan trial court, municipal trial court, municipal circuit trial court, shari'a district court, shari'a circuit court or any other court hereafter established is killed because of his/her work; when a Justice or Judge is killed intentionally while in service, the presumption is that the death is work-related, regardless of the number of years served in government or the judiciary, the surviving spouse
and the surviving children of the slain Judge or Justice, shall be entitled to receive a monthly pension during the residue of his/her natural life in the manner hereinafter.
According to Solicitor General Jose Calida, the former first lady has been getting P5,000 monthly pension since April 9, 1994, for being a surviving spouse
of a deceased World War II veteran pursuant to Republic Act No.
The rules apply to deaths on or after 3 December 2014 and offer a comforting opportunity for a surviving spouse
to retain tax free income and, in the majority of cases, the status quo which they had established within the joint financial arrangements with their spouse.
These funding and investment decisions will also be affected by the rights to distribute appreciated assets back to the surviving spouse
out of a bypass bust, by an investment manager's confidence in controlling gains in the bypass bust, and by whether the bypass bust was structured to be a grantor trust as to the surviving spouse
to permit swapping appreciated assets.
The American Taxpayer Relief Act of 2012 permanently established the concept of portability: availing a surviving spouse
of a deceased spouse's lifetime exemptions for estate and gift taxes.
Even in intestate estates, Florida law recognizes a preference for the surviving spouse
to be a fiduciary.
The taxpayer desires to provide for the surviving spouse
while minimizing, or even eliminating, estate taxes.