The Unlimited Marital Deduction is a provision in U.S. estate and gift tax law that allows one spouse to transfer an unlimited amount of assets to the other spouse, during life or at death, without incurring federal estate or gift taxes.
This deduction is available only if the recipient spouse is a U.S. citizen; transfers to non-citizen spouses may be subject to special limitations.
The deduction effectively postpones estate taxation until the death of the surviving spouse, when the combined estate may become taxable, subject to available exemptions.
As a foundational estate planning tool, the Unlimited Marital Deduction helps preserve family wealth, ensures financial security for the surviving spouse, and facilitates a smoother transfer of assets.
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