Which statement about gift and estate taxes for spouses is TRUE?

The statement that gifts between spouses are unlimited, and no tax is due on one spouse's death is true. In the United States, there is an unlimited marital deduction that allows couples to transfer any amount of property between them without incurring gift taxes. This means that one spouse can give any amount of property to the other without triggering a tax obligation at the time of the gift. Furthermore, when one spouse passes away, the value of the deceased spouse's estate can generally be transferred to the surviving spouse without incurring estate taxes. This provision is designed to promote financial stability and continuity within marriages, allowing couples to manage their assets without the immediate concern of tax implications upon gifting or upon death.

Other options present incorrect interpretations of the law regarding gift and estate taxes for spouses. Gifts between spouses are, in fact, exempt from taxation up to any amount, not subject to taxation. Estate taxes do not apply solely to the surviving spouse; they are assessed on the estate of the deceased, which may include assets designated for the surviving spouse. Finally, the notion that all gifts are taxed equally regardless of recipient does not apply to the context of spousal gifts, as they have a unique tax treatment under the marital deduction provisions.