When Terminable Interests Prevent the Marital Deduction in Estate DisputesWhen Terminable Interests Prevent the Marital Deduction in Estate Disputes

As estate attorneys and advisors, one of our primary goals is to do what’s in the best interests of the estate. We strive to minimize the amount of the estate subject to estate tax to maximize the value of property passed tax-free to the intended beneficiaries of the decedent. While individuals prepare their wills with the best of intentions, disputes often arise even in well-prepared estates.  

The marital deduction is one of the most important tools that an estate can use. The deduction allows for the tax-free passing of assets to a surviving spouse by reducing the value of the estate for all assets that pass to the surviving spouse. But, the exact timing of when a surviving spouse has a nonterminable interest is complicated by settleme...