Question and background: What are the trade-offs between gifting our house to our children and having it pass to them from our estate? How can we figure out which option is best for us? My wife and I are fortunate enough to own a lovely home in Southwest Denver that we'd like to pass on to our oldest daughter. We'd like to gift it to her today, but we're wary about the taxes and penalties involved. While our expenses should be covered, we also wouldn't want to leave her in a situation where she has to sell the home when the time comes. Is there a way we can give her the home today? Or will she end up having to pay a bunch in taxes?