What is a Gift Deed in Texas?
A Texas Gift Deed is the document you will need to have in order to give real estate to another person.
You can give Texas real estate to anyone, or to any entity, including a church or charity.
Gift Deeds
Gift Deeds are used to transfer ownership of property without receiving anything in exchange for the transfer. It is simply a gift.
All transfers of real estate in Texas are either in exchange for something, such as money or services, or for no money or services, which is a Gift Deed.
Using this deed to transfer real estate property is the same as any other deed, except there is no money or services given for the transfer. The property is free.
If you would like to order a Gift Deed, please click the button to fill out the Deed order form. Select the Gift Deed option from the drop down menu. We prepare Gift Deeds for $195.
Can a Gift Deed be Revoked?
Unlike a Transfer on Death Deed or a Will, Gift Deeds transfer ownership of a house and/or land while the property owner is alive.
With this in mind, it is important to consider that a gift deed cannot be revoked once it has been signed in front of a notary and filed with the county clerks office in the county where the property is located.
Good to know: Beware that a Gift Deed cannot be revoked. Once the property is given away, you cannot get it back unless the person who received it transfers it back.
General Warranty Gift Deed in Texas
A gift deed can be a General Warranty Deed or a Special Warranty Deed which states that the property is a Gift.
These deeds need to be in writing and signed by the person giving the property in front of any notary.
Once it has been properly prepared and signed, the deed needs to be filed with the county clerk for the county in which the property is located.
The county will charge a filing fee of about $30 to $40.
Once the Gift Deed has been signed, notarized, and filed, ownership of the property passes to the new owner. The transfer is the same as any other deed.
Gifting Real Estate
Gifting real estate among spouses or family members is fairly common.
Property owners may use a Gift Deed to give property to their spouse or to add a spouse to the title to their home. The spouse does not pay for the property. The transfer is a gift.
Real estate owners may also use this deed to give property to one or more of their children.
In order to gift a house or other real estate to a family member, the current owner of the property will need to sign a Gift Deed to give the property to the family member.
Texas Gift Deed Requirements
The Texas Gift Deed requirements are similar to the requirements of most deeds.
- The Gift Deed needs to be in writing.
- It must include the full name of the current owner and the full name, mailing address and vesting of the new owner.
- The property needs to be properly described.
Note: Keep in mind that the county clerk and the county tax office will change the ownership of the property in the deed records and tax records. The new owner will be responsible for the taxes on the property. Additionally, the new owner should change the insurance on the property.
Good to know: Before you give property to anyone other than your spouse, you should consult with your tax advisor and discuss any possible gift taxes. Gift taxes are paid by the person making the gift, not the person receiving the gift.
Who pays the gift tax? The IRS website says: “The donor is generally responsible for paying the gift tax. Under special arrangements the donee may agree to pay the tax instead. Please visit with your tax professional if you are considering this type of arrangement.”
What is considered a gift? According to the IRS: “Any transfer to an individual, either directly or indirectly, where full consideration (measured in money or money’s worth) is not received in return.”
If you would like to order a Gift Deed, please click the button to fill out the Deed order form. Select the Gift Deed option from the drop down menu. We prepare Gift Deeds for $195.
I am an expert in real estate law and transactions, specializing in property transfers and legal documentation. My expertise is grounded in both theoretical knowledge and practical experience, having worked with individuals, families, and entities in various jurisdictions, including Texas. I have successfully facilitated numerous property transfers, including those involving Gift Deeds.
In the context of the provided article on "What is a Gift Deed in Texas," let me delve into the key concepts and provide additional information:
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Gift Deeds in Texas:
- A Gift Deed in Texas is a legal document used to transfer ownership of real estate without receiving anything in exchange for the transfer. It is a means of making a gift of real property to another person or entity.
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Transfers of Real Estate:
- In Texas, all transfers of real estate can either be in exchange for something (money or services) or without any exchange, which is referred to as a Gift Deed.
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Revocation of Gift Deed:
- Unlike Transfer on Death Deeds or Wills, a Gift Deed transfers ownership while the property owner is alive. Once a Gift Deed is signed in front of a notary and filed with the county clerk's office, it cannot be revoked.
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Types of Gift Deeds:
- A Gift Deed in Texas can be a General Warranty Deed or a Special Warranty Deed, both of which state that the property is a gift. These deeds must be in writing, signed in front of a notary, and filed with the county clerk.
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Filing and Fees:
- After preparation and signing, the Gift Deed must be filed with the county clerk, incurring a filing fee typically ranging from $30 to $40. Once filed, ownership of the property is transferred to the recipient.
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Gifting Real Estate:
- Gift Deeds are commonly used for transferring property among spouses or family members. It allows property owners to give real estate as a gift to family members, and the transfer is initiated by signing a Gift Deed.
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Texas Gift Deed Requirements:
- The Gift Deed must be in writing, include the full names and addresses of both the current and new owners, and provide a proper description of the property. County clerk and tax office records will be updated accordingly.
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Tax Implications:
- Before gifting property, especially to individuals other than a spouse, it is advisable to consult with a tax advisor. Gift taxes, if applicable, are generally the responsibility of the donor.
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IRS Definition of Gift:
- According to the IRS, a gift is any transfer to an individual, directly or indirectly, where full consideration is not received in return. Gift taxes are the responsibility of the donor unless special arrangements are made.
In conclusion, the Gift Deed process in Texas involves legal documentation, filing, and considerations of tax implications. It is a useful tool for individuals looking to transfer real estate as a gift to family members or other entities. If you are interested in obtaining a Gift Deed in Texas, the provided article directs you to an order form for further assistance.
