Paralegal Advanced Competency Exam (PACE) Practice Exam 2025 – The Comprehensive All-in-One Guide to Exam Success!

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What does the marital deduction allow a surviving spouse to do?

Avoid all tax obligations

Transfer property without tax implications

The marital deduction is a provision in tax law that permits a surviving spouse to transfer property to their spouse without incurring federal estate or gift tax liabilities. This means that when one spouse passes away, the surviving spouse can receive an unlimited amount of property and assets without paying taxes on that transfer. This deduction effectively allows couples to avoid tax implications associated with transfers between them, which can serve to enhance the financial stability of the surviving spouse at a difficult time.

Choosing this option relates directly to how the marital deduction functions within estate planning and tax regulations, aiming to promote economic security for surviving family members. The other options, while relevant to different aspects of estate and tax considerations, do not accurately represent the specific benefits provided by the marital deduction.

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Qualify for government benefits

Claim inheritance against probate

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