For married couples, the first spouse to die can leave his or her entire estate to the surviving spouse tax free under which provision?

For married couples, the first spouse to die can leave his or her entire estate to the surviving spouse tax free under which provision?

• A. Unlimited marital deduction
• B. Portable
• C. Unified credit
• D. Net estate

Answer: (A)

The unlimited marital deduction allows a first-death transfer to the surviving spouse to pass without federal estate tax. As long as the surviving spouse is a U.S. citizen, the deceased can leave any amount to the spouse tax-free, with taxation postponed to the second death. This is why the option describing the unlimited marital deduction is the best choice. If the surviving spouse isn’t a U.S. citizen, the deduction isn’t truly unlimited, which is the key nuance. Portable, unified credit, and net estate don’t provide the same tax-free transfer mechanism at the first death.

The unlimited marital deduction allows a first-death transfer to the surviving spouse to pass without federal estate tax. As long as the surviving spouse is a U.S. citizen, the deceased can leave any amount to the spouse tax-free, with taxation postponed to the second death. This is why the option describing the unlimited marital deduction is the best choice. If the surviving spouse isn’t a U.S. citizen, the deduction isn’t truly unlimited, which is the key nuance. Portable, unified credit, and net estate don’t provide the same tax-free transfer mechanism at the first death.