A tax provision that allows an unlimited amount of property of one spouse to transfer to the other upon death without incurring estate or gift tax.
A spouse can pass all of their property to the other spouse without incurring federal estate or gift tax penalties by using the unlimited marital deduction, which allows for limitless transfers of property between the spouses.Congress enacted the clause to address the issue of estates being pushed into higher tax brackets due to inflation. Between couples, the amount of assets that can be transferred is limitless. In some circumstances, extra estate planning techniques such as exemptions or trusts will result in lower taxes being paid.
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