In US tax law, an unlimited deduction from estate and gift taxes for property transferred to a surviving spouse. Allows spouses to transfer any amount without federal tax, provided the spouse is a US citizen.
A US tax rule that lets you give any amount to your spouse—during life or in your will—without paying gift or estate tax. Tax is deferred until the second spouse dies. Only applies to legally married spouses.
⏱ When you'll encounter this term
- US estate tax planning
- Leaving assets to your spouse tax-free
- Large estates subject to federal estate tax
- Comparing tax treatment of different beneficiaries
- Planning for second marriages or blended families
"I left my $10 million estate to my wife. Thanks to the marital deduction, my estate pays zero federal estate tax. Her estate will be taxed when she dies."
💡 Did you know?
The marital deduction is unlimited in amount—you can leave $1 million or $100 million to your spouse tax-free. However, it only defers tax until the second spouse dies, when the combined estate may face significant tax.