Assume a married couple's total assets are several million dollars and the husband dies, leaving everything to his wife. What will be the federal estate tax amount?

Question

Quizplus · Accepted Answer

The federal estate tax only applies to estates exceeding the exemption amount (which is $11.58 million in 2020). Since the couple's total assets are several million dollars, we don't have enough information to determine whether their estate exceeds the exemption amount. However, since the husband leaves everything to his wife, there would be no federal estate tax due at that time due to the unlimited marital deduction. The estate tax liability for the couple would be postponed until the wife dies and the assets pass to someone other than her spouse.

Assume a Married Couple's Total Assets Are Several Million Dollars