What is one goal of marital deduction and bypass planning?

The goal of marital deduction and bypass planning primarily revolves around tax efficiency, particularly concerning estate taxes. By fully utilizing a person's applicable credit amount, individuals can take advantage of the federal estate tax exemption during estate planning. This means that assets can be transferred without incurring significant tax liabilities, thereby preserving wealth for the beneficiaries.

Marital deduction allows one spouse to transfer an unlimited amount of assets to the other spouse without facing estate tax during the donor's lifetime or upon death. However, with bypass planning, the aim is for the estate to be structured in such a way that it not only benefits the surviving spouse but also takes full advantage of the applicable credit amount, ensuring that both spouses' exemptions are utilized effectively.

This strategic approach does not directly relate to minimizing taxes on real estate, maximizing retirement benefits, or eliminating probate, although those considerations can be part of an overall financial plan. The primary focus is on estate tax implications and ensuring that the estate is structured to minimize tax burdens while maximizing asset transfer to heirs.