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 Utah, as in all states across the United States, the estate tax marital deduction is governed by federal law, as Utah does not impose a state-level estate tax. The federal estate tax 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 or trust. This deduction effectively defers the estate tax on these assets until the surviving spouse's death. To qualify for the marital deduction, the recipient spouse must be a U.S. citizen, and the assets must be transferred outright or through certain types of trust arrangements. It's important to note that while the marital deduction can eliminate estate tax at the first spouse's death, proper estate planning is still advisable to address potential taxes at the second spouse's death and to ensure that the couple's financial goals are met.