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Assume that D and S are married, and that S is a US citizen, for this and the following questions until indicated otherwise. D was
Assume that and are married, and that is a US citizen, for this and the following
questions until indicated otherwise. D was previously married and has two children from
that prior marriage. D plans to leave property in trust rather than outright to at Ds death.
What advice will you give to concerning the marital deduction, if the terms of the trust
provide for an income interest to for her life, with a testamentary power allowing her to
appoint the corpus at Ss death to Ss estate, and in default of appointment, to Ds children
from his first marriage?
Although Ss income interest terminates at her death, her testamentary power qualifies the interest
for the marital deduction as a LEPA under
Although Ss income interest terminates at her death, her testamentary power qualifies the interest
for the marital deduction as a LEPA under
Ss interest is a terminable interest and thus not eligible for the marital deduction under b
To qualify as a LEPA, S actually must exercise her testamentary power.
All of the foregoing statements are true.
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