Which of the following scenarios does NOT qualify for the marital deduction?

• A. Life Insurance proceeds validly payable to an ex-spouse.
• B. Lump-sum distribution of the decedent's qualified retirement plan to the surviving spouse.
• C. Specific bequest in the decedent's will of intangible personal property to the surviving spouse.
• D. Joint property that passes to the surviving spouse by statute.

Answer: (A)

Marital deduction allows a transfer of property to the decedent’s surviving spouse to be taxed at wife/husband level with no estate tax. But it only applies if the recipient is the current spouse at death. An ex-spouse is not the surviving spouse for this purpose, so life insurance proceeds payable to an ex-spouse aren’t eligible for the deduction. The other scenarios involve transfers to the person who is the decedent’s surviving spouse: a retirement plan payout to the spouse, a bequest of intangible property to the spouse, and joint property passing to the spouse by survivorship. Each of those is a transfer to the current spouse and thus qualifies.