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 South Carolina, as in all states, the estate tax marital deduction is primarily governed by federal law, not state law. The federal unlimited marital deduction allows a married individual to transfer an unlimited amount of assets to their spouse without incurring federal estate taxes, whether the transfer occurs during their lifetime or at death through a will. South Carolina does not impose a state-level estate tax, so there are no additional state-specific regulations regarding the marital deduction within the state. It's important for spouses in South Carolina to consider the federal estate tax implications and ensure proper estate planning to take advantage of the marital deduction. Consulting with an attorney who specializes in estate planning can provide guidance tailored to individual circumstances.