IRA Beneficiary
28. Leaving Everything to Your Spouse (Marital Deduction)
Let's say Bob and Sue together have a net estate of $4 million, including Bob's IRA. Bob dies first in 2008. By using the marital deduction and naming his wife Sue as the beneficiary of his IRA, Bob leaves everything to Sue estate tax-free. It's a great deal until Sue dies later that same year.