2.4 Taxable Estate

• Library: A Lawyer's Guide to Estate Planning: Fundamentals for the Legal Practitioner (ABA) (2018 Ed.)

2.4 Taxable Estate

In estates in which the election under Internal Revenue Code Sections 303 and 6166 is not used, the previously discussed deductions are allowed in determining the taxable estate. Two additional deductions also are allowed. The first deduction is allowed for the value of any property passing to public, charitable, and religious organizations.³¹ The deduction is permitted for a bequest, devise, or transfer to (1) a federal, state, or local government for public purposes; (2) corporations or fraternal organizations whose exclusive purpose is religious, charitable, scientific, literary, educational, fostering national or international sports competition, or preventing cruelty to children or animals; or (3) qualified veterans organizations. The estate tax deduction is allowed for the fair market value of the property passing to the charity to the extent that such property is included in the gross estate.

A marital deduction is allowed for qualified property passing from the decedent to his or her surviving spouse.³² The marital deduction, like the charitable deduction, is allowed for the full value of the property passing to the surviving spouse to the extent that such property is included in the gross estate. It is immaterial...