Taxation of Estates and Gifts

Qualified Terminable Interest Property


Qualified terminable interest property is property which passes from the decedent, in which the surviving spouse has a qualifying income interest for life, paid at least annually, and which is elected under 26 U.S.C. § 2044. 26 U.S.C. § 2056(b)(7).

Qualifying Income Interest for Life

The surviving spouse has a qualifying income interest for life if she's entitled to all the income from the property or has a usufruct and if no one can appoint anyone else. 26 U.S.C. § 2056(b)(7)(B)(ii).