Using the Marital Deduction in Settlements

Brett Bueltel, University of Southern Indiana, Margaret Ryznar, Indiana University Robert H. McKinney School of Law, and Jamie Seitz, University of Southern Indiana – School of Business, have made available for download their article, “Using the Marital Deduction in Settlements,” Tax Notes, Vol. 157, No. 5, pp. 667-673, (October 2017).

The Abstract is as follows:

This article considers a common scenario in which a surviving spouse challenges a prenuptial agreement that granted each spouse a life estate at the other’s death, and whether the resulting settlement payment by the estate can qualify for the marital deduction when structured as a statutory election. Section 2056(c) explicitly allows the marital deduction for the elective share, but the result may be the same even if the Will Contest Regulation applies. Thus, a prenuptial agreement does not necessarily prevent the marital deduction if the surviving spouse challenges the prenuptial agreement and attempts to exercise statutory rights, facilitating settlement.

Download full article, Using the Marital Deduction in Settlements, by clicking here.

Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.

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