Estate and Gift Taxes on Retirement Benefits
- § 20.01 Overview of Estate and Gift Taxes on Retirement Benefits
- —–[1] Gift Tax on Beneficiary Designation
- —–[2] Estate Tax on Retirement Benefits
- —–[3] Estate Tax Marital Deduction
- —–[4] Estate Tax Charitable Deduction
- —–[5] Estate Tax Exclusion for Pre-1985 Retirement Benefits
- —–[6] Tax Planning with Qualified Disclaimers
- —–[7] Income Tax Deduction for Federal Estate Taxes Paid
- § 20.02 Gift Tax on Beneficiary Designation
- —–[1] Retiree Unlikely to Incur Gift Taxes on Retirement Benefits
- —–[2] Marital Deduction for Irrevocable Gifts to Spouse
- —–[3] The Applicable Exclusion
- § 20.03 Estate Tax Treatment of Retirement Benefits
- —–[1] Taxable Estate and Effect of the Applicable Exclusion
- ———-[a] The Tax Rate and Exclusion Amount
- ———-[b] Deceased Spouse Unused Exclusion Amount
- ———-[c] Election of Carryover Basis for 2010 in Lieu of Estate Tax
- ———-[d] Applicability to Retirement Benefits
- —–[2] The Marital Deduction
- ———-[a] Marital Deduction for a Retirement Plan or Arrangement
- ———-[b] Recipient Trust Subject to Spouse’s General Power of Appointment
- ———-[c] QTIP Election for a Plan, Arrangement, or Beneficiary Trust
- —————[i] Advantages Afforded by a QTIP Election
- —————[ii] QTIP Election for a Retirement Plan or Arrangement
- —————[iii] QTIP Election for a Trust that Is Beneficiary of a Plan or Arrangement
- —————[iv] Control of Beneficiary Selection vs. Reduced Tax Deferral
- —————[v] Accumulations of Required Minimum Distributions in Trust
- —————[vi] Spousal Power over IRA Income Not Exercised
- —————[vii] Automatic QTIP Election for Spousal Survivor Annuities
- —————[viii] Effect of QTIP Election on Surviving Spouse’s Gross Estate
- ———-[d] Qualified Domestic Trust (QDOT) for Non-Citizen Surviving Spouse
- —————[i] Generally No Marital Deduction for Non-Citizen Spouse Without a QDOT
- —————[ii] Special QDOT Treatment for IRAs, Non-Assignable Annuities, Retirement Plans
- —–[3] Exempt Charitable Organization as a Plan Beneficiary
- —–[4] Exclusion Dependent on Certain Pre-1985 Events
- —–[5] Disclaimers of Interests in Retirement Plans and Arrangements
- ———-[a] The General Effect of Qualified Disclaimers of Interests
- ———-[b] Definition of a Qualified Disclaimer
- ———-[c] The Nine-Month Disclaimer Window
- ———-[d] No Acceptance of Benefits in the Retirement Plan or Arrangement
- ———-[e] Automatic Passage of Disclaimed Interest to Successor
- ———-[f] Disclaimers of Interests by Executors and Administrators
- ———-[g] Disclaimers of Partial Interests in Plans or Arrangements
- —————[i] Disclaimers of Separate Interests
- —————[ii] Disclaimers of Powers of Appointment
- —————[iii] Disclaimers of Trust Interests
- —————[iv] Disclaimers of Severable Property
- —————[v] Disclaimers of Undivided Portions
- —————[vi] Disclaimers of Pecuniary Amounts
- ———-[h] Tax Planning with Disclaimers
- —–[6] Effective Use of the Applicable Exclusion
- ———-[a] Portability of the Applicable Exclusion
- ———-[b] Traditional Planning May Still be Useful
- ———-[c] By-Pass Trust as Beneficiary of a Tax-Favored Retirement Plan
- —————[i] Use of By-Pass Trusts Generally
- —————[ii] By-Pass Trusts and IRAs in Community Property States
- § 20.04 Income Tax Deductions for Estate Tax Paid
- —–[1] Estate Tax Paid on Income in Respect of a Decedent (IRD)
- —–[2] Retirement and Annuity Payments as IRD
- —–[3] Computation of Income Tax Deduction for Portion of Estate Tax Liability
- § 20.05 The Generation-Skipping Tax (GST)
» Chapter 21 – RETIREMENT BENEFITS OF FOREIGN RETIREES