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Still looking for info. on how putting a child on the deed to a house uses the unified credit, and what the eventual estate tax consequences are. Consider the following example:

Mr. X has a house worth $200,000. He puts his son, Little X, on the deed. I understand that a $100,000 taxable gift has taken place. I believe that a federal gift tax return must be filed, and $90,000 of the unified credit (the amount in excess of the $10,000 annual exclusion) has been used up.

5 years later, Mr. X dies. The house has grown to a value of $300,000. Is the entire $300,000 subject to estate tax, so the total value of the house that has been subject to estate and gift tax is $390,000?. Or is there a $90,000 deduction from the taxable estate, so that only $210,000 is subject to estate tax?

Any help would be appreciated.
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