@macuser_22 wrote:
....private conversations and agreements between spouses are just that - private and cannot be reviewed even with a court order (spousal privilege)...
Spousal (marital) privilege covers disclosure of private communications between spouses during a marriage. It would not cover the spouses' financial statements which would show a transfer from the father to his wife and then the wife's financial statement showing a transfer, shortly thereafter, to the son.
The privilege would also not prohibit the son's disclosure of communications regarding the transaction between his father and his father's wife (nor protect the son's financial statements relating to the transaction).
@macuser_22 wrote:
I have never heard of this being applied to spouses giving to children because 1; transactions between spouses are not reported or are reviewable by anyone.....
I am not sure what the point is of the above-quoted statement.
The fact that you have not "heard of this being applied" does not mean it is inapplicable, particularly if you do not practice in this area and/or have no formal tax education or training.
Further, it is almost a certainty that an overwhelming majority of reportable gifts are unreported and it is virtually impossible for such gifts to be reviewed without examining written (printed) documents.
