I propose that under dependants' relief legislation a court should be allowed to redistribute a maximum of 50% of the value of an estate testamentarily
disposed of by a will-maker to satisfy any legal obligations the will-maker may have towards his or her surviving spouse (Step 1) and a maximum of 50% of the remaining value to satisfy any legal obligations the will-maker may have towards his or her children and any moral obligations towards his or her surviving spouse or children (Step 2).
2) Federal Estate and Gift Tax Marital Deduction--Pursuant to [section][section] 2056 and 2523, property passing (during life or testamentarily
) either outright to a surviving spouse or in certain trusts for the benefit of the surviving spouse, qualifies for the federal estate and gift tax marital deduction.
Under Boggs, a spouse who is not a participant in an Employee Retirement Income Security Act of 1974 (ERISA)-governed pension plan may not testamentarily dispose of a community property interest in undistributed pension funds.
Alternatively, X and Y could transfer all of their real and personal property to Y, allowing her to use $500,000 of her AEA by testamentarily transferring these assets to her bypass trust.