Bob,
Taxes do not apply in your situation. Simply adding a spouse to a deed does not incur any federal or state taxes period. The reason for adding her to the deed, is because you acquired the home before you were married to her. Adding her, makes it community property with full rights of survivorship, as your spouse she would simply inherit it tax free upon your death...Even if you failed to add her now, she would still inherit it (( UNLESS!!! )) some unscrupulous person or person's tries to make claim to it, that is if you die without a will or living trust...So it's advisable to make her joint owner of all assets and accounts to avoid that possibility. If you wanted to give / transfer sole ownership of the home to her now, where she becomes the sole owner with " No strings attached " or any asset or amount of cash for that matter... It would then fall under ( Unlimited Marital Deduction ) completely tax free and it would not count against your lifetime combined gift and estate tax, which is approximately $5,250,000. which could still be used for other family members for example...Bottom line is your spouse will inherit all of your assets tax free unless otherwise specified in a will or trust.
