These are good points, and I stand corrected. The laws have changed on this substantially over the past 10 years or so. There is a brief summary of the changes

These are good points, and I stand corrected. The laws have changed on this substantially over the past 10 years or so. There is a brief summary of the changes here: http://www.irs.gov/Businesses/Small-Businesses-%26-Self-Employed/What%27s-New---Estate-and-Gift-Tax http://www.irs.gov/Businesses/Small-Businesses-%26-Self-Empl... It turns out there is also, this: Beginning January 1, 2011, estates of decedents survived by a spouse may elect to pass any of the decedent’s unused exemption to the surviving spouse