Surviving Spouse Estate Tax Exemption

No Marital Deduction

Under current law, when a spouse of a married couple dies, the surviving spouse qualifies for a federal estate tax marital deduction. This allows for the descendant to leave unlimited amounts of assets to a surviving spouse, either outright or though a marital trust, with no tax imposed. The only prerequisites for this deduction are that the marriage must be valid and intact at the date of death, and the surviving spouse must be a U.S. citizen. That’s where we hit a snag. Since my husband is a Canadian citizen, the marital deduction would be denied to him, and what would have normally been passed through tax-free is now subject to taxation. Read the article