Question

True/False

1. All married couples qualify for the unlimited marital deduction
2. As long as the surviving spouse is one of the individuals possessing a GPOA over a trust, the trust assets will qualify for the unlimited marital deduction.
3. Once Portability was added to the Internal Revenue Code, the surviving spouse automatically receives the lesser of a) the maximum Unified Credit or b) the Unified Credit less the Estate Tax Liability.

Answer 1

Answer

All married couples qualify for the the unlimited marital deduction - False

Reason : The above statement is False as the Unlimited Marital Deduction is allowed to married couples upon the death of the 1st spouse and when there is a surviving spouse.

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As long as the surviving spouse is one of the individuals possessing a GPOA over a trust, the trust assets will qualify for the Unlimited Marital Deduction - True

Reason :The statement is True beacuse if the surviving spouse has a General Power of Appointment over the assets of the trust and so gets automatically qualified for the Unlimited Marital Deduction.

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Once Portability was added to the Internal Revenue Code, the surviving spouse automatically receives the lesser of a) the maximum Unified Credit or b)the Unified Credit less the Estate Tax Liability - False

Reason : The statement is False as the due to Portability to Internal Revenue code, the surviving spouse receives lesser of a) Basic Exclusion Amount and not the maximum Unified Credit. OR b) the Unified Credit Less the Estate Tax Liability

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