Which of the following would not qualify for the federal estate tax marital deduction?

• A. A life estate conditioned on no remarriage.
• B. A QTIP trust.
• C. Royalty rights from the publication of a book.
• D. A bequest of tangible personal property.

Answer: (A)

The marital deduction is allowed only when the surviving spouse has an interest in the property that cannot be forfeited or, if it’s placed in trust, a qualifying income interest for life (as with a QTIP). A life estate that is conditioned on no remarriage creates a contingency that could end the spouse’s right to use or enjoy the property if they remarry. Because that interest is forfeitable, it does not meet the nonforfeitable/qualifying requirement for the unlimited marital deduction, so it would not qualify.

In contrast, a QTIP trust is designed to give the surviving spouse a qualifying income interest for life and still pass to others later, which makes it eligible for the deduction. Royalty rights and tangible personal property can also qualify when they pass to the spouse outright or through a qualifying arrangement, since they can represent a present or properly structured bequest to the spouse.