Q: Can a husband leave real estate to an adult child instead of his spouse so it can be sold without capital gains taxes?
A:
The husband can leave his half of the community property and all of his separate property to whomever he wants.
It won't matter for capital gains who he leaves it to though. That person, spouse or stranger, will inherit the property at a stepped up basis (erasing the capital gain tax due upon sale).
Zaher Fallahi , James Edward Berge and Yelena Gurevich agree with this answer
A:
If the husband owns the house as his sole and separate property, he can leave it to whomever he chooses. If the house is community property with his wife, then he can leave his half to whomever he wants. The wife can leave her half to the son or whomever else she chooses.
As my colleague stated, the house will be reassessed at the market value at the time it is passed through inheritance, otherwise known as a step-up in basis. So capital gains tax will not be an issue.
Zaher Fallahi , James Edward Berge and Yelena Gurevich agree with this answer
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