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When he dies any amount of assets that he leaves to his spouse will not be subject to gift or federal estate taxes as there is an unlimited marital deduction for assets passing to a spouse. It is true that he can gift up to $1,000,000 in excess gifts over his lifetime to individuals other than his spouse and not have to pay gift taxes. However, the $1,000,000 limit does not apply to any gifts that he makes to his spouse as they are not subject to gift taxes, regardless of the amount.