The unlimited marital deduction allows a spouse to leave an unlimited amount of assets to their surviving spouse without incurring any federal estate tax at the first spouse's death. This applies whether assets are transferred directly to the surviving spouse or to a qualifying trust for their benefit. The marital deduction essentially defers estate taxes until the death of the second spouse.
Portability of Estate Tax Exemption
The concept of portability allows a surviving spouse to use their deceased spouse's unused estate tax exemption amount (DSUEA). Key points about portability include:
It allows the surviving spouse to add the deceased spouse's unused exemption to their own. To claim portability, an estate tax return (Form 706) must be filed within 9 months of the first spouse's death (with a possible 6-month extension). As of 2024, the individual lifetime estate tax exemption is $13.61 million. Portability effectively allows married couples to pass on up to $27.22 million tax-free to heirs in 2024.
What happens to the federal estate tax in 2025? How Will the Sunsetting of the Tax Cuts and Jobs Act Impact Estate Tax? The TCJA provisions related to the estate tax exemption is set to sunset on December 31, 2025 — causing the exemption limits to revert to approximately $7 million (individuals) and $14 million (married couples).Feb 20, 2024
我一直对遗产继承夫妻limit，step up basis 有困惑。以下举例
假设单人limit是10米，夫妻共同财产18米，一个孩子。夫妻一方去世，夫妻中存活方继承9米， 这个9米不用交税？等夫妻中剩下的一方也去世，假设一共还有18米。这18米传给一个孩子。这时是按一人10米limit，8米要交税，还是按两人limit 20米，18米都不需要交税？
如果是按一人limit，那岂不是应该在夫妻一方去世时，9米直接给孩子继承，以此免税？
Unlimited Marital Deduction
The unlimited marital deduction allows a spouse to leave an unlimited amount of assets to their surviving spouse without incurring any federal estate tax at the first spouse's death. This applies whether assets are transferred directly to the surviving spouse or to a qualifying trust for their benefit. The marital deduction essentially defers estate taxes until the death of the second spouse.
Portability of Estate Tax ExemptionThe concept of portability allows a surviving spouse to use their deceased spouse's unused estate tax exemption amount (DSUEA). Key points about portability include:
It allows the surviving spouse to add the deceased spouse's unused exemption to their own. To claim portability, an estate tax return (Form 706) must be filed within 9 months of the first spouse's death (with a possible 6-month extension). As of 2024, the individual lifetime estate tax exemption is $13.61 million. Portability effectively allows married couples to pass on up to $27.22 million tax-free to heirs in 2024.What happens to the federal estate tax in 2025? How Will the Sunsetting of the Tax Cuts and Jobs Act Impact Estate Tax? The TCJA provisions related to the estate tax exemption is set to sunset on December 31, 2025 — causing the exemption limits to revert to approximately $7 million (individuals) and $14 million (married couples).Feb 20, 2024
基本是第一种情况。夫妻之间unlimited. 孩子继承是按当时去世的（个）人的limit 算。 想在2025 gift 孩子的，除非能超过2026 limit， 用到2024/2025高limit，比如gift 到 6米到13.61 米（2024 limit)。 以后limit降了，超出部分， IRS也不会clawback. 不然也没什么意义。这都是给非常富有的人准备的法律。
我就不抄那个心啦。该吃吃，该喝喝！
法律上叫做portability of estate tax exemption。