Estate Planning - Chapter 10 - The
Unlimited Marital Deduction
Which of the following qualifies for the unlimited marital deduction?
A.Outright bequest to resident alien spouse.
B.Property passing to noncitizen spouse in QTIP.
C.Outright bequest to resident spouse who, prior to the decedent's death was a
noncitizen, but who after the decedent's death and before the estate return was filed,
became a U.S. citizen.
D.Remainder beneficiary of a CLAT who is a nonresident alien spouse. -
answerC.Outright bequest to resident spouse who, prior to the decedent's death was a
noncitizen, but who after the decedent's death and before the estate return was filed,
became a U.S. citizen.
Of the options, only an outright bequest to a resident alien spouse who becomes a U.S.
citizen before the estate return is filed qualifies for the unlimited marital deduction.
Of the following, which is not a benefit of the unlimited marital deduction?
A.The use of the unlimited marital deduction can shelter future appreciation of an asset
from estate taxes at the death of the second-to-die spouse.
B.The estate tax on property can be deferred until the death of the second-to-die
spouse.
C.The unlimited marital deduction can fund the applicable estate tax credit of the
surviving spouse.
D.The unlimited marital deduction can ensure the surviving spouse has sufficient assets
to support her lifestyle. - answerA.The use of the unlimited marital deduction can shelter
future appreciation of an asset from estate taxes at the death of the second-to-die
spouse.
Property that transfers to the second-to-die spouse is eligible for the marital deduction
and, to the extent that it is not consumed, will be included in the second-to-die spouse's
gross estate at the fair market value at his date of death, including any appreciation that
may have occurred since the first-to-die spouse's estate. Therefore, future appreciation
of an asset is not sheltered by using the unlimited marital deduction.
Donny died on January 1, 2024, after a drunk driver hit his car. The property he owned
at his death included the attached.
All property on the attached was owned in sole ownership by Donny. The annuity is a
joint and survivor annuity and will continue to pay his wife, Jeanette. Donny's will leaves
all probate assets to his son and daughter in equal shares. Donny also owned a life
insurance policy on his life. The basis in the policy was $89,000 and the death benefit
was $1,000,000. The beneficiary of the insurance policy was Donny's daughter, Cheryl.
Unlimited Marital Deduction
Which of the following qualifies for the unlimited marital deduction?
A.Outright bequest to resident alien spouse.
B.Property passing to noncitizen spouse in QTIP.
C.Outright bequest to resident spouse who, prior to the decedent's death was a
noncitizen, but who after the decedent's death and before the estate return was filed,
became a U.S. citizen.
D.Remainder beneficiary of a CLAT who is a nonresident alien spouse. -
answerC.Outright bequest to resident spouse who, prior to the decedent's death was a
noncitizen, but who after the decedent's death and before the estate return was filed,
became a U.S. citizen.
Of the options, only an outright bequest to a resident alien spouse who becomes a U.S.
citizen before the estate return is filed qualifies for the unlimited marital deduction.
Of the following, which is not a benefit of the unlimited marital deduction?
A.The use of the unlimited marital deduction can shelter future appreciation of an asset
from estate taxes at the death of the second-to-die spouse.
B.The estate tax on property can be deferred until the death of the second-to-die
spouse.
C.The unlimited marital deduction can fund the applicable estate tax credit of the
surviving spouse.
D.The unlimited marital deduction can ensure the surviving spouse has sufficient assets
to support her lifestyle. - answerA.The use of the unlimited marital deduction can shelter
future appreciation of an asset from estate taxes at the death of the second-to-die
spouse.
Property that transfers to the second-to-die spouse is eligible for the marital deduction
and, to the extent that it is not consumed, will be included in the second-to-die spouse's
gross estate at the fair market value at his date of death, including any appreciation that
may have occurred since the first-to-die spouse's estate. Therefore, future appreciation
of an asset is not sheltered by using the unlimited marital deduction.
Donny died on January 1, 2024, after a drunk driver hit his car. The property he owned
at his death included the attached.
All property on the attached was owned in sole ownership by Donny. The annuity is a
joint and survivor annuity and will continue to pay his wife, Jeanette. Donny's will leaves
all probate assets to his son and daughter in equal shares. Donny also owned a life
insurance policy on his life. The basis in the policy was $89,000 and the death benefit
was $1,000,000. The beneficiary of the insurance policy was Donny's daughter, Cheryl.
