Under what condition is the unlimited marital deduction available?

Under what condition is the unlimited marital deduction available?

• A. Surviving spouse is a resident alien
• B. The trust is revocable
• C. Surviving spouse is a U.S. citizen
• D. The decedent dies childless

Answer: (C)

The key thing being tested is who qualifies for the unlimited marital deduction. This deduction lets a deceased spouse leave any amount to the surviving spouse without federal estate tax, but only if the surviving spouse is a U.S. citizen. When the surviving spouse is a citizen, the full amount can pass free of tax, which is why this option is the best answer. If the surviving spouse isn’t a U.S. citizen, the unlimited deduction isn’t available and planning typically relies on other vehicles (like a QDOT) to defer taxes, so the deduction isn’t unlimited. A revocable trust status doesn’t by itself unlock the unlimited deduction, and whether the decedent had children doesn’t affect the citizenship requirement.

The key thing being tested is who qualifies for the unlimited marital deduction. This deduction lets a deceased spouse leave any amount to the surviving spouse without federal estate tax, but only if the surviving spouse is a U.S. citizen. When the surviving spouse is a citizen, the full amount can pass free of tax, which is why this option is the best answer. If the surviving spouse isn’t a U.S. citizen, the unlimited deduction isn’t available and planning typically relies on other vehicles (like a QDOT) to defer taxes, so the deduction isn’t unlimited. A revocable trust status doesn’t by itself unlock the unlimited deduction, and whether the decedent had children doesn’t affect the citizenship requirement.