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.

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.”

https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-taxes

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.”

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