Marital Deduction

Example

If a married couple has a community property estate of $500,000, each has a net estate value of $250,000. Assuming both spouses have wills that leave their estates to each other, when one spouse dies, the other will inherit the decedent's $250,000 estate. That inheritance is free of estate tax, because the marital deduction eliminates estate tax on anything from one spouse to the other.

Example provided by Paul Premack Esq.

http://www.premack.com/columns/2006/2006-11-14.htm