The Marital Deduction Life Insurance
DISCLAIMER: ReliaQuote is not providing legal advice. If you have a specific legal issue or accounting issue, you should consult with a lawyer who is licensed to practice law in your jurisdiction or a certified public accountant familiar with tax regulations in your jurisdiction.
Are you married? If so, your surviving spouse can inherit all of your estate free of estate and gift taxes at your death (your spouse must be a U.S. citizen to qualify for the marital deduction). While this is a nice benefit, unfortunately it will not last forever. Once the surviving spouse dies, his or her estate may be subject to estate taxes depending upon the value of the assets in the estate.
NOTE: If your spouse is not a U.S. citizen then your estate can be held in a Qualified Domestic Trust (QDOT) to avoid taxation upon the transfer to your spouse.