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04:54 Dec 6, 2010
English to German translations [PRO] Bus/Financial - Law: Taxation & Customs
English term or phrase:qualified terminable interest property election
Strangely, despite being called "terminable", it seems that the interest must persist for the life of the beneficiary. From the IRS Code sec. 2056:
(B) Qualified terminable interest property defined
For purposes of this paragraph—
(i) In general The term “qualified terminable interest property” means property—
(I) which passes from the decedent,
(II) in which the surviving spouse has a qualifying income interest for life, and
(III) to which an election under this paragraph applies.
(ii) Qualifying income interest for life The surviving spouse has a qualifying income interest for life if—
(I) the surviving spouse is entitled to all the income from the property, payable annually or at more frequent intervals, or has a usufruct interest for life in the property, and
(II) no person has a power to appoint any part of the property to any person other than the surviving spouse.
Subclause (II) shall not apply to a power exercisable only at or after the death of the surviving spouse. To the extent provided in regulations, an annuity shall be treated in a manner similar to an income interest in property (regardless of whether the property from which the annuity is payable can be separately identified).
(iii) Property includes interest therein The term “property” includes an interest in property.
(iv) Specific portion treated as separate property A specific portion of property shall be treated as separate property.
(v) Election An election under this paragraph with respect to any property shall be made by the executor on the return of tax imposed by section 2001. Such an election, once made, shall be irrevocable.