Can the first heir give an item of property he receives, and which the testator intended to go to the second heir later on, as a present to a third party?

Hello T:

Sure, why not? The second he receives it, it's HIS to do with what he pleases.

excon

If the testator intended that the item go to the second heir later on, testator should have somehow specified that in the will. Unlike real property, personal property is difficult to treat in this manner because it tends to wear out, get broken, etc.

Just one other thing to add: the gift from the first heir to the 2nd is just that - a gift. If it's value is greater than the $13,000 annual gift tax exclusion limit, this will trigger the need for the first heir to file a gift tax form when he does his income taxes. However, no tax is actually due unless the value of the gift (plus the amounts reported on any previous gift tax filings) exceeds the lifetime gift tax threshold of $1 million.

Thank you guys～