Transfer of a Coverdell account to a spouse or former spouse under a divorce decree isn’t a taxable transfer.  The transfer of a Coverdell account to a surviving spouse at the death of the beneficiary isn’t a taxable transfer either.  However, if the Coverdell account is transferred at the beneficiary’s death to anyone other than the surviving spouse, the account stops being a Coverdell account as of the death of the Coverdell account beneficiary.  In that case, the value of the account is taxable to the recipient.