What is the definition of the Unlimited Spousal Deduction?

The US government has granted an exemption for all transfers of assets between married partners, in addition to the $5,490,000.00 exemption for federal estate taxes. This exemption, known as the Unlimited Spousal Deduction, implies that, regardless of the size of the estate, no taxes are due when the first spouse passes away. However, it is important to note that this is not a complete tax exemption; the tax liability is merely postponed until the surviving spouse’s death. At that time, the entire estate will be subject to taxation before any distribution is made to beneficiaries, including children.
Essentially, the Unlimited Spousal Deduction can be perceived as a strategy employed by the US government. By imposing estate taxes on the death of the surviving partner, it permits the estate to accumulate and grow beyond $5,490,000.00, allowing the government to tax the excess at a rate of 45%.
CAUTION: Please be aware that the tax regulations do not apply the Unlimited Spousal Deduction to non-US citizen surviving spouses. Unless special planning is conducted, non-citizen spouses will be restricted to receiving only the personal exemption of their deceased spouse at the time of death. Any excess beyond the personal exemption will be subject to taxation.