While living, Schemer promised Spouse that if Spouse would be kind and loving, S
ID: 2446518 • Letter: W
Question
While living, Schemer promised Spouse that if Spouse would be kind and loving, Schemer would leave Spouse $400,000 of Schemer's $1 million estate; but Schemer did not. What is the result if Schemer's promise was made in a separation agreement with Spouse and was a promise binding on Schemer's estate becoming effective on Schemer's death to pay Spouse $10,000 per year until Spouse died or remarried for a relinquishment of Spouse's right to support? What is the result in the above question if Spouse remarried on the day of Schemer's funeral, a few days after Schemer's death? Would that affect the amount of the estate tax deduction?
Explanation / Answer
The $10000 spouse will be getting per year would be counted non-deductible interest and they cannot be claimed as deductions. Spouse will continue to get that interest lifelong or till remarriage. It doesn't matter if she is married on the day of funeral or a few days later she will get the approriate interest till remarriage. Yes, if she gives up the right to support then that will be considered as a consideration.
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