Forced heirship/community property transfer: no estate tax?

[beboppin]

If a wife or child receives assets following a husband/father’s death as part of community property rights, is that taxable? A Schweser question response in the estate planning chapter implies that the surviving spouse does NOT have to pay tax on what’s received. I had thought all assets transferred upon death were subject to estate taxes, generally speaking, but I guess I’m wrong. Would love anyone else’s take on this.

 

[jamespeer]

Spousal transfers are not subject to Estate tax (in most countries anyway). So if you die your assets pass to your wife without an Estate tax (called inheritance tax in the UK). When the wife dies the beneficiaries pay tax on the inheritance. This is because in most countries the estate of a married couple is viewed as being Joint, with estate tax only payable upon the second death. Sometimes the case will specify individual assets and marital assets, and what the wife/children are entitled to ‘claw-back’ under community and/or forced heirship rules.