Using the Marital Deduction in Settlements

8 Pages Posted: 18 Dec 2017  

Brett Bueltel

University of Southern Indiana

Margaret Ryznar

Indiana University Robert H. McKinney School of Law

Jamie Seitz

University of Southern Indiana - School of Business

Date Written: October 25, 2017

Abstract

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.

Suggested Citation

Bueltel, Brett and Ryznar, Margaret and Seitz, Jamie, Using the Marital Deduction in Settlements (October 25, 2017). Tax Notes, Vol. 157, No. 5, pp. 667-673, October 2017. Available at SSRN: https://ssrn.com/abstract=3059376

Brett Bueltel (Contact Author)

University of Southern Indiana ( email )

8600 University Boulevard
Evansville, IN 47712
United States

Margaret Ryznar

Indiana University Robert H. McKinney School of Law ( email )

530 West New York Street
Indianapolis, IN 46202
United States

Jamie Seitz

University of Southern Indiana - School of Business ( email )

Evansville, IN 47712
United States

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