Opinion ID: 106702
Heading Depth: 2
Heading Rank: 3

Heading: The Payment of Debts and Expenses as a Marital Gift.

Text: In our view the payments made as a result of the testator's assumption of responsibility both for his wife's share of the community debts and for her share of the administration expenses are more properly characterized as marital gifts rather than as claims or expenses. Since these gifts were to the surviving spouse, respondents contend that a marital deduction should be allowed. Our interpretation of § 812 (e) disposes of this argument, for under any view of the facts, even if these items are deemed to be gifts to the wife, the will required her to surrender property more valuable than the bequests she received. [23] In the absence of a net benefit passing to the surviving spouse, no marital deduction is allowable. The judgment of the Court of Appeals for the Fifth Circuit is reversed and the case remanded for proceedings in accordance with this opinion. It is so ordered.