A gift deed is a legal document that conveys ownership of a piece of real estate from the parent to the adult child as a gift.
As such, no exchange of consideration, or money, occurs between the two parties.
This document is legally drafted and must contain the signature of two disinterested witnesses.
Can my mother sign over her house to me?
Once you have signed over your property to your children, it will be counted among their assets, so even if you plan to go on living there, you will no longer be the legal owner. Equally, you could be forced out if your children decide they want to rent or sell the property – or live there themselves.
How can my parents transfer their house to me?
Your parents can give their home to you as a tax-free gift if the transaction meets the Internal Revenue Service definition of a gift. Your parents must legally own the property and intend to give it to you as a gift. They must relinquish all rights and ownership of the house and retitle the house in your name.
Can my parents buy me a house?
The parents can deduct their expenses as well as the mortgage interest, the property taxes, insurance, maintenance, and utilities on income tax returns. They’d love to just buy her a house and give it to her, but want to avoid gift/estate tax implications.
Do I have to pay taxes if my parents give me a house?
Property gifts count as a “potentially exempt transfer” under the inheritance tax rules. This means that they can be made inheritance tax-free as long as the giver lives for seven years afterwards.