What is a marital deduction and how does it work?

A marital deduction is an estate planning law in Florida that allows spouses to transfer an unlimited amount of assets to one another without incurring tax liability. This means that if one spouse leaves their assets to the other, the surviving spouse will not have to pay taxes on those assets. This type of deduction is only available to legally married couples in the state of Florida. The way this works is that when one spouse dies, the surviving spouse has the option to transfer the deceased spouse’s assets or property to them without incurring any tax liability. This includes all assets such as money, real estate, stocks, bonds, and other investments. This is a helpful asset transfer option since the surviving spouse can inherit all of the deceased spouse’s assets without having to worry about paying taxes on them. The surviving spouse is also allowed to make additional transfers to others without incurring a tax liability; however, it is important to note that these transfers must meet certain requirements. Generally, the transferred assets must be made directly to a person and not held in a trust. Additionally, the transfer must occur within nine months of the spouse’s death, and the amount of the transferred assets must be disclosed to the IRS. Overall, the marital deduction in Florida is an extremely helpful asset transfer option for legally married couples in the state. It allows the surviving spouse to transfer assets to other individuals without incurring a tax liability, which can save them money in the long run.

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What is a marital deduction and how does it work?

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