839 / When is marital deduction property in which a decedent had an income interest includable in the gross estate under IRC Section 2044?

A marital deduction is allowed for transfers of “qualified terminable interest” property, commonly referred to as “QTIP,” if the decedent’s executor (or donor) so elects and the spouse receives a “qualifying income interest” in the property for life. (See Q 847, Q 911.) If the property subject to the qualifying income interest is not disposed of prior to the death of the surviving spouse, the fair market value of the property determined as of the date of the spouse’s death (or alternate valuation date, if so elected) is included in the spouse’s gross estate pursuant to IRC Section 2044.