Brody and Rothermich Reply

Brody, Lawerence; Rothermich, Douglas
January 1995
Journal of Financial Planning;Jan1995, Vol. 8 Issue 1, p19
Academic Journal
This article presents responses of authors on the comments made by Joseph M. Gordon on their article "Minimizing the 'Triple Tax'." The authors opine that to assure that the undistributed retirement plan assets will remain tax deferred, the trustee of the qualified terminable interest property trust should have the right to withdraw and the surviving spouse have the unqualified right to compel the trustee to exercise such withdrawal right. It is opined that if the qualified terminable interest property trust includes these provisions, the designation of the trust as the beneficiary of retirement plan assets should not trigger immediate income taxation of the undistributed retirement plan assets, but will qualify for the estate-tax marital deduction. Regarding the income taxation of payments to a surviving spouse pursuant to a charitable remainder unitrust, the authors opine that trust's basis in the retirement plan assets will be zero. However, the collection of the retirement plan assets will not, by itself, trigger any income taxation.


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