This allows most married couples to leave everything to each other free of estate taxes when they die.
A federal gift and estate tax deduction allowed for transfers of property between spouses. Specifically, the marital deduction for both federal estate and gift taxes has no dollar or percentage limit as long as the donee (the spouse to whom the property is transferred) is a citizen of the U.S.
With the unlimited marital deduction, a husband or wife who dies is able to pass on an unlimited amount of assets to the surviving spouse without the need for the survivor to pay estate taxes. The unlimited marital deduction is also known as an estate tax break.
The transfer tax deduction available for qualifying transfers between spouses. There is no limit to this deduction, no matter how large the transfer.
Property that qualifies as marital deduction property. Under ERTA '81, the ability to pass unlimited amounts of property that qualifies for the marital deduction became law. At present unlimited amounts of marital deduction property may pass to a surviving spouse without estate or gift tax consequences.
An unlimited amount can be left to a spouse of a deceased U.S. citizen, free of federal estate taxes, so long as it is left outright to the spouse, in a Q-TIP Trust, or in another trust qualifying for the deduction.
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Deduction given to the first spouse to die allowing his or her estate to pass to the surviving spouse free of estate tax.
A rule permitting spouses to transfer an unlimited amount of assets to each other, while alive or after death, without any income- or estate-tax implications. Overuse of the unlimited marital deduction may lead to a loss of the unified credit of the first spouse to die.
An Internal Revenue Service provision that allows an individual to transfer an unlimited amount of assets to a spouse, during life or at death, without incurring federal estate or gift tax.
A deceased husband or wife can pass assets to the other without any estate tax owed.
Property transferred from one spouse to another during life or at death generally qualifies for full gift and estate tax deduction thus avoiding any transfer tax.
