Question

Jim and Pam Thomas have been married for many years. How will the estate be taxed when transferred to the remaining spouse if one of them dies

Answer 1

When a spouse dies, and his/her estate is passed to the surviving spouse, there is no estate tax liability. When you are married, a joint tenancy in common is formed for all the spouses' estate, so if one dies, the estate will pass automatically to the surviving spouse (joint tenant) unless a prenuptial or postnuptial agreement exists.