How Do You Spell MARITAL DEDUCTION?

1. Marital deduction refers to a provision in the United States tax code that allows a married person to transfer an unlimited amount of assets to their spouse without incurring federal estate or gift taxes. This deduction is a crucial estate planning tool that helps facilitate the transfer of wealth between spouses during their lifetime or upon one's death.

   When an individual transfers assets to their spouse, either as gifts or as part of their estate plan, the marital deduction allows those assets to be excluded from their taxable estate. This means that the assets are not subject to federal estate taxes when the transferor passes away. The surviving spouse assumes ownership of these assets and any associated tax liability.

   While the marital deduction provides significant tax advantages to married couples, it is important to note that it is only available to heterosexual spouses who are citizens of the United States. Same-sex couples were granted access to the marital deduction with the legalization of same-sex marriage in all states in 2015.

   The primary purpose of the marital deduction is to prevent the unfair and undue taxation of assets that are transferred between spouses. It seeks to ensure that wealth and property accumulated during a marriage can be passed between spouses without incurring unnecessary tax burdens. The marital deduction is a key component of effective estate planning strategies that aim to preserve wealth and provide for the financial well-being of surviving spouses.

Common Misspellings for MARITAL DEDUCTION

The term "marital deduction" is a legal and tax term that emerged in the United States in the 20th century. Its etymology can be broken down as follows:

1. Marital: The word "marital" is derived from the Latin word "maritus", which means "married". It is related to the Latin noun "maritus", meaning "husband", and "moris", meaning "custom". Ultimately, it is connected to the Proto-Indo-European root "meri", referring to "a young woman or wife".

2. Deduction: The word "deduction" originates from the Latin verb "deducere", which means "to lead away" or "to derive". "Deducere" is composed of "de" (from) and "ducere" (to lead), resulting in the idea of deriving or taking away something.