Using RE to bypass inheritance tax

[Jimmy H.]

I had a thought that you could potentially use RE to bypass inheritance and gift tax issues. I know that you are only allowed to gift about $12,000 to any one individual, and I know the goverment taxes you when you die and want to pass on wealth to your heirs.

I know this situation would involve a lot of trust between the parties and is situational....but consider this scenario. Parent has cash (or could potnetially liqudate mostly into cash) and buys investment property in the child's name. Simple as that, I don't see how this is a gift or would violate any laws - but that is why I am throwing it out to al BPers to poke holes in.

If a parent buys a property and puts the name directly in the ownership of a child (or an LLc that a child owns), isn't this an easy way of bypassing inheritance tax issues?

A variation on the theme - You could also form an LLC that is 99% owned my child and 1% owned by parent and the parent rolls their property into the LLC name?

Will this work? why or why not?