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INSIDE
The College Story That Launched Mike’s Career — and a 30-Year Love Story
Singapore’s Bold Move for a Cleaner Future
Avoid the College-Kid Privacy Trap
Why Your ‘3-Year Check-Up’ Can’t Wait
Garlic Parmesan Shrimp
Secrets to Spousal Stability
The Art of Unlimited Deductions Maximized Marital Magic
Devising the best estate plan to provide for those dearest to you can be emotionally and logistically challenging, even under the clearest circumstances. However, this process can be even more difficult due to the critical terms, conditions, and laws that could determine the strength or weakness of how your wishes are carried out upon your passing. To make things a little easier, here are the basics about the “unlimited marital deduction” and how it influences what one spouse receives from another. TAX-FREE TRANSFERS The unlimited marital deduction enables a spouse to transfer unlimited assets to another tax-free. You derive this deduction by subtracting the total amount of assets from the gross estate, which must be distributed according to a will. Estate taxes on transferred assets are delayed until the recipient spouse’s death. The
spouses must be legally married U.S. citizens to qualify for this deduction. SAFEGUARDING A SUSTAINED LEGACY If an individual wishes to have a say in what happens to their assets after their surviving spouse passes, they can set up an irrevocable Qualified Terminable Interest Property (QTIP) Trust that will still provide for the surviving spouse but outline beneficiaries upon their death. Because this trust is irrevocable, it can’t be altered by anyone, including the surviving spouse. CITIZENSHIP EXCEPTIONS Although establishing the unlimited marital deduction is straightforward for American citizens, pursuing similar options for non- citizen spouses is more complex but not impossible. First, a U.S. citizen can gift money to their non-U.S. citizen spouse. In 2024, the maximum amount not subject to gift taxes was $185,000. Another option
would be to establish a Qualified Domestic Trust (QDOT), which allows the non-citizen spouse to take advantage of the unlimited marital deduction so long as they are the sole beneficiary and at least one trustee is a U.S. citizen or an American corporation. Naturally, the conditions outlined in this brief overview are subject to a host of what- ifs that may affect the specific outcome of your situation. Working with skilled financial planners familiar with these nuances is essential to secure your spouse’s well-being and satisfy tax obligations when the time comes to implement your estate plan.
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