What is a marital deduction?

A marital deduction is a type of tax break designed to help married couples in Oklahoma pay lower taxes on certain types of property. It allows them to divide the property’s market value between them as separate property, and each party pays taxes on only their portion. This reduces the overall tax burden for both parties. In Oklahoma, the marital deduction applies to the transfer of real estate, money, stocks, and other assets between spouses. This allows the couple to receive some tax relief as long as they’re still married. It’s important to remember that a marital deduction will only apply if the assets are distributed as part of a divorce settlement. If the assets are distributed as part of a will or through a trust, the marital deduction won’t apply. It’s important to note that the marital deduction is not available in all states, including Oklahoma. This means that married couples may not be able to take advantage of the tax break. Additionally, the marital deduction is only applicable when the assets are transferred between spouses as part of a divorce settlement. If the assets are transferred as part of a will or trust, the marital deduction will not apply.

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