Federal Estate/Death/Gift Taxes Question?

I have two questions 1. For a grandfather that wishes to pass all of his property to his granddaughter, would it be cheaper for him to make the transfer by gift or at the time of death? 2. For two recently married people, the man would like to pass all of his wealth to his wife when he dies. Would the man avoid transfer taxes or would he still have to pay taxes even if all of the wealth passes to a spouse?

Public Comments

1. 2. There is no estate or gift tax between spouses. 1. If the property is appreciated, it may be better to pass it upon death. That also makes sure it is still available to the grandfather during his life. He can gift a million in excess of the $13,000 annual exclusion if he so desires. If the estate is very large, it would be wise to consult a good estate attorney. Mistakes can be very costly.
2. 1. you can gift $13000 a year without incurring taxes on either the value of the property at the death would trigger estate taxes that the estate would pay and the remainder would be inherited tax free to the beneficiary 2. married people should have their assets in tenants in common so that when one dies, the other automatically owns all without legal battles