Article

Marital Deduction Not Reduced by Federal Estate Taxes Resulting from Assets Included in Estate under I.R.C. § 2036

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Abstract

In general, for purposes of the marital deduction, the value of property passing to the surviving spouse, and therefore the amount of the deduction, is reduced by federal estate taxes and other administrative costs attributable to the marital share unless state law or the will provides otherwise. However, if there are insufficient estate assets not included in the marital bequest to pay federal estate taxes, the marital assets used to pay those taxes reduce the marital deduction whether or not so directed by state law or the will. A recent case explores the effect on the marital deduction by federal estate taxes due because of property not in the estate but brought into the taxable estate by imposition of I.R.C. § 2036 on pre-death gifts.

How to Cite:

Achenbach, R. P., (2018) “Marital Deduction Not Reduced by Federal Estate Taxes Resulting from Assets Included in Estate under I.R.C. § 2036”, Agricultural Law Digest 29(23), 177–178.