Sally's will passes real estate to Otto (her surviving spouse). The real estate is worth $800,000 but is subject to a mortgage of $200,000. The transfer provides Sally's estate with a marital deduction of $600,000.

Question

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The marital deduction is equal to the value of the property passing to the surviving spouse, which in this case is $800,000 minus the mortgage of $200,000, or $600,000.

Sally's Will Passes Real Estate to Otto (Her Surviving Spouse)