What is the unrestricted marriage deduction?

The federal government permits every married individual to transfer an unrestricted amount of assets either as a gift or inheritance, to his or her partner without incurring any federal gift or estate taxes. Essentially, the unrestricted marriage deduction enables married couples to postpone estate tax payment upon the demise of the first spouse, as upon the passing of the surviving spouse, all assets in the estate exceeding the applicable exclusion amount ($12,920,000 in 2023) will be included in the survivor’s taxable estate. It is important to note that the unrestricted marriage deduction is exclusively accessible to surviving partners who are citizens of the United States.