Is there an estate tax deduction for married people?
Yes. In addition to the phased-in personal exemption that everyone receives, the federal government has exempted all transfers of wealth between a husband and wife. This is called the Unlimited Marital Deduction. Under the Unlimited Marital Deduction, there will be no federal estate taxes levied when the first spouse dies and leaves the estate to the surviving spouse, regardless of the size of the estate. Keep in mind, however, that this is merely a postponement of taxes. There will be a tax on the estate of the surviving spouse when it passes to the children or other beneficiaries. Since the estate will continue to appreciate in value, when taxes are eventually paid they may be paid at a higher rate. Please note that recent changes in the tax law have eliminated the Unlimited Marital Deduction for surviving spouses who are not U.S. citizens. Without special planning, all non-citizen spouses are restricted to the tax-free transfer of the personal exemption amount from their deceased sp
Yes. In addition to the phased-in personal exemption that everyone gets, the federal government has exempted all transfers of wealth between a husband and wife. This is called the Unlimited Marital Deduction and it means that regardless of the size of your estate there will be no federal estate taxes levied when the first spouse dies and leaves the estate to the surviving spouse. Keep in mind, however, that this is merely a postponement of tax. There will be a tax on the estate of the surviving spouse when it passes to the children or other beneficiaries. Since in all probability the estate will continue to appreciate in value, taxes may be paid at a higher rate. WARNING: Recent changes in the tax law have eliminated the unlimited marital deduction for surviving spouses who are not U.S. citizens. Without special planning, all non-citizen spouses are restricted to the tax-free transfer of the personal exemption amount from their deceased spouses.
