Well wha-da-ya-know, using that liar-logic "shazam" I'm a billionaire, lmao! 

I guess the logic being that the recipients each pay taxes to what ever bracket they are thrown into instead of my grandparents getting taxed for the whole property.

I just can't see the logic, no matter how hard I try!

Also is it at all logical for them to pay your nightly rate for 3-6 months?  

Many times I have seen folks live in squalor who appear bright and able bodied but their mindset and negative self talk prevents them from ever improving their lives Case in point ; I have some rentals that are on the bad side of town , the buildings are old and probably need some work and oddly enough I get the same $ rates or better than the good side of town that is a far nicer condition property in a better area . the only logical explanation is the tenants choose a “ rough” area to live because they look at themselves as being “ rough” they lived in “ rough” areas all their lives and they know they wouldn’t fit in there I guess . 

In addition to all of the logical reasons, I'm sure some emotional attachment plays into it too...ie grandma's house or a deceased family member.

They have a team of highly-paid lawyers, I have logic.  

As a landlord you can never assume a tenant will follow a lease with a reasonably logical approach.

With this logic I should pass on both?....

Following that "for the kids" logic, perhaps if she hasn't thought about building assets to pass down to the kids, maybe that's something to consider - one investment property may not justify the hassle in providing for your kids whereas several properties, as permitted by future growth generated from the acquisition of a multifamily-house hack would merit some benefit.