Assuming a wealthy couple had a simple 100% marital deduction plan when S1 died, explain how each of the following defers or reduce the estate tax for S2: (a) remarriage; (b) consumption; or (c) gifts. (d) Explain the drawbacks to each of these estate planning devices.

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a Remarriage When S1 dies leaving all assets to S2 with a 100 marital deduction plan S2 effectively inherits the entire estate taxfree due to the marital deduction However if S2 remarries after S1s de... View the full answer