The estate tax marital deduction—also known as the unlimited marital deduction or the marital deduction—allows one married spouse to transfer an unlimited amount of assets to the other spouse without incurring estate taxes on those assets. The marital deduction is calculated by subtracting the value of the assets passed on or transferred to the other spouse from the total value of the transferring spouse’s gross estate.
A transfer that qualifies for the marital deduction may be made while both spouses are alive or after the death of a spouse, as provided in the deceased spouse’s will.
In Texas, as in all states, the estate tax marital deduction is primarily governed by federal law, not state law. The federal estate tax marital deduction allows a married individual to transfer an unlimited amount of assets to their spouse without incurring any federal estate taxes. This can be done either during their lifetime or upon death through a will or trust. Texas does not impose a state estate tax, so there are no additional state-level regulations concerning the marital deduction in Texas. It's important to note that to qualify for the marital deduction, the recipient spouse must be a U.S. citizen, and the assets must be transferred outright or through certain types of trust arrangements. Estate planning attorneys in Texas can provide guidance on how to structure an estate to take advantage of the marital deduction and other estate planning strategies under federal law.
