A marital deduction refers to a provision in tax law that allows a Surviving spouse to Inherit their deceased spouse's Assets without incurring immediate Estate Tax or Inheritance Tax on the transferred assets.
While federal estate tax allows for the deduction, some states may also have their own estate or Inheritance Taxes with varying rules and exemptions. State-level estate tax laws can differ significantly, and not all states provide a full spousal exemption. Some may have limitations regarding transfers between spouses.
Also known as a Spousal Exemption.