The estate tax marital deduction—also known as the unlimited marital deduction or the marital deduction—allows one married spouse to transfer an unlimited amount of assets to the other spouse without incurring estate taxes on those assets. The marital deduction is calculated by subtracting the value of the assets passed on or transferred to the other spouse from the total value of the transferring spouse’s gross estate.

A transfer that qualifies for the marital deduction may be made while both spouses are alive or after the death of a spouse, as provided in the deceased spouse’s will.

In Louisiana (LA), the estate tax marital deduction aligns with federal law, as Louisiana does not impose a state-level estate tax. The federal estate tax marital deduction allows the surviving spouse to inherit an unlimited amount of assets from the deceased spouse without incurring federal estate taxes at the time of transfer. This deduction applies to assets transferred to the surviving spouse either during the lifetime of the deceased spouse or as dictated by the deceased spouse's will. The value of the assets transferred to the surviving spouse is subtracted from the total value of the deceased spouse's gross estate when calculating the estate tax. It's important to note that while the marital deduction defers estate taxes, it does not eliminate them; taxes may be due upon the death of the surviving spouse. To ensure proper application of the marital deduction and compliance with all relevant laws, it is advisable to consult with an attorney who specializes in estate planning.