Legal Question in Wills and Trusts in California

Suggest you contact a tax accountant to better advise you re the tax consequences of your inquiry re whether tax would be due on transfer of art to your wife you state you have received.

There is an unlimited marital deduction (assuming spouse is a US citizin) for gifts. But, you should consult with a good estate planning attorney to go over your assets and the allocation of assets upon your death to determine if it would be best to have the assets part of your estate; hold them in trust for your spouse for her lifetime (assuming you die first); determine if after your spouse dies who should receive the assets, etc. The value of these assets and the value of your other assets, and possibly the separate property of your spouse all need to be considered before gifts are made. Your overall estate plan also needs to be evaluated considering this acquisition by you as well as potential other issues.

How didi you get the art? Was it a gift? If so you owe no tax. Was it as payment for services? Isf so you owe income tax to the extent of the fair market value of the art. You need to determing the tax impact of the receipt before you think about transfering. Also keeop in mind that upon your divorce, it belongs to her. Are you sure you want this result?

Seek tax planning counsel