Financial Planner

Answer: C - IRC Section 2056 (d) deals with noncitizen spouses and disallows the marital deduction if the surviving spouse is not a U.S. citizen. If the spouse becomes a citizen before the federal estate tax return is filed (within nine months), IRC Section 2056 (d) does not apply. However, the spouse must have been a U.S. resident at the time of the decedent’s death. Noncitizen spouses are allowed to receive a special $100,000 annual exclusion indexed for inflation.