Marital Deduction for Estate Tax

Marital Deduction for Estate Tax
The Marital Deduction for Estate Tax allows a surviving spouse to inherit an unlimited amount of assets from a deceased spouse without incurring federal estate taxes. This deduction is designed to promote the intergenerational transfer of wealth between spouses.

For example, if a husband passes away and leaves his entire estate valued at $5 million to his wife, no estate tax will be incurred at the time of his death, thanks to the marital deduction. However, the value of the estate may be subject to taxes when the surviving spouse passes away, depending on the total value of their estate at that time.