<p>If the husband dies first, and he gives all his property to his wife,  then under a special rule called the marital deduction, there will be  no estate tax upon his death. This is true even if the estate is above  $5,000,000 (in 2013). For example if a husband and wife jointly own more  than $10,000,000, and the husband dies. Husband is allowed $5,000,000  exemption (in 2013) for his one half of community property. Under the  marital deduction, if the husband's property over $5,000,000 exemption  (in 2013) passes to the surviving wife, then there is no estate tax.</p>
<p>However,  when the surviving wife thereafter dies, there will be death taxes. If  the wife's estate is over $5,000,000 (in 2013), death taxes must be  paid. If the wife's estate is $10,000,000 the death taxes will be about  $2,200,000. Nevertheless, death taxes can be avoided or reduced in this  case with proper estate planning. (see discussion on Estate Planning  Trust)</p>
<p>The same marital deduction rules apply if the wife dies first.</p>