ALI-ABA

By Sebastian V. Grassi, Jr.

The 2008 Cumulative Supplement to A Practical Guide To Drafting Marital Deduction Trusts (With Sample Forms and Checklists) updates the text of the main volume and includes the two complete updated marital deduction trust forms.

Among the many new and updated issues covered in the 2008 Cumulative Supplement are:

• Disclaimers by beneficiary-trustees.
• When a governing instrument’s presumption of survival is ineffective for marital deduction purposes.
• Disclaimers by beneficiary-trustees.
• Funding the credit shelter trust through the use of disclaimers.
• Drafting the marital deduction trust in multiple marital situations.
• The tax consequences of a QTIP trust investing in a family limited partnership/family limited liability company, and whether a trustee has a duty to invest in such an entity in order to minimize transfer taxes upon the death of the surviving spouse.
• A discussion of the transfer tax consequences if a surviving spouse, as the sole executor of the estate, makes a Clayton contingent QTIP election.
• “Supercharging” an inter-vivos QTIP trust (with contributions by Jonathan G. Blattmachr, Mitchell M. Gans and Diana S. C. Zeydel).
• How to maximize income from a QDOT in order to minimize the payment of estate taxes on QDOT distributions.
• How a general power of appointment trust and a QTIP trust can hold non-income producing assets and still qualify for the marital deduction.
• Five new ways to draft flexibility into marital deduction trusts and credit shelter trusts.
• Predeceased parent rule and GST tax generation assignments.
• The final (and the recently proposed) GST tax qualified severance regulations.
• IRAs payable to trusts, and the IRS’s recent ruling concerning the definition of “income” regarding retirement benefits payable to a marital deduction trust.
• New IRA distribution flowcharts (contributed by Robert S. Keebler, CPA, MST).
• And much more.