Marital Deduction Estate Planning: Variations on a Classic Theme

This Article examines the Economic Recovery Tax Act of 1981 (ERTA) and the changes its provisions have brought about in estate planning for married couples when the first meaningful transfers take effect at death and are essentially interspousal in nature. He provides an overview of the general considerations involved in estate planning, and the unlimited marital deduction created in the ERTA. The author argues that the creation of the new unlimited marital deduction has modified many preexisting principles and patterns in estate planning and existing estate plans have to be modified in order to provide maximum tax savings with maximum benefit to the heirs and beneficiaries.