Marital Deduction

The Marital Deduction is a tax provision that allows the transfer of assets between spouses without incurring federal estate or gift taxes. Essentially, when one spouse passes away, any assets given to the surviving spouse are exempt from estate taxes, which can help preserve family wealth. This deduction applies regardless of the amount of the transfer, promoting financial stability within the marriage. It encourages couples to transfer their wealth to each other, ensuring that surviving spouses have the resources they need without the burden of immediate tax liabilities.