What is a marital deduction and how does it work?

A marital deduction is an important part of estate planning law in Nebraska. It allows for a surviving spouse to receive an unlimited amount of the deceased’s estate tax-free. This exceeds the amount of the federal estate tax exemption for an individual, which is currently $11.58 million. The marital deduction works by allowing the surviving spouse to receive the deceased’s assets as a deduction from the estate itself. For example, if the estate is valued at $100,000, the surviving spouse can receive that amount tax-free. The deduction applies regardless of the size of the estate, providing the assets are given to the surviving spouse. The deductions are important to keep in mind when making an estate plan in Nebraska. In addition to the unlimited amount that the surviving spouse can receive, the spousal deduction also applies to any gifts the deceased may have made prior to their death. However, any amounts that exceed the federal estate tax exemption – currently set at $11.58 million – may be subject to tax. Finally, it is important to note that the marital deduction does not apply in all cases. It is only applicable if the surviving spouse is a U.S. citizen, or is in the U.S. legally. If the surviving spouse is not a citizen, the marital deduction may not apply. As a result, it is important to consult with a qualified attorney prior to finalizing any estate planning decisions.

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What is a marital deduction and how does it work?

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