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Commonly Asked Questions about Real Estate Gift Deeds

No recordation tax shall be required for the recordation of any deed of gift between a grantor or grantors and a grantee or grantees when no consideration has passed between the parties. Such deed shall state therein that it is a deed of gift.
Bottom Line. California doesnt enforce a gift tax, but you may owe a federal one. However, you can give up to $18,000 in cash or property during the 2024 tax year and up to $17,000 in the 2023 tax year without triggering a gift tax return.
Unlike a will, the gift deed is effective immediately on execution. In contrast, the will comes into force only on the death of the testator. Secondly, a gift deed cannot be revoked, except under some special circumstances, where the gift is conditional, and the recipient has defaulted on his side of the deal.
A federal tax called the gift tax is assessed on transfers of cash or property valued above a certain threshold. Gift tax is paid by the giver of money or assets, not the receiver.
A gift deed must be (1) in writing, (2) signed, (3) describe the property, and (4) delivered. TPC 5.021. Texas further requires the document set forth (1) the intent of the grantor, (2) the delivery of the property to the grantee, and (3) the gift to be accepted by the grantee.
Ownership may be transferred by preparation of a new deed, which has been properly signed. The new deed must be recorded in the Circuit Court Clerks Office where the real estate is located.
In Pennsylvania, there is no state gift tax. Transfers of property by gift are exempt from the Pennsylvania property transfer tax (91 Pa. C.S. 193), but are subject to the federal gift tax described above.