To Avoid the Terminable Interest Limitation on the Marital Deduction

question 117

True/False

To avoid the terminable interest limitation on the marital deduction, the surviving spouse must be granted a general power of appointment over the trust property, and a QTIP election must be made.

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Definitions:

Expected Life

The anticipated duration a fixed asset is likely to be useful in business operations before needing replacement.

Residual Value

The anticipated price that an asset will fetch at the time of its disposal, following the conclusion of its useful lifespan.

Adjusted Trial Balance

A compilation of every account along with their revised balances following adjustment entries, utilized in the preparation of financial reports.