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a gift deed is a legal document that is used to transfer ownership of real property from one person to another without receiving any compensation or exchange of money in Texas the process of transferring property through a gift deed is governed by the Texas property code a gift deed is typically used in situations where a person wants to give a gift of real property to a family member friend or other loved one the main reason for using a gift deed is to avoid the cost and hassle of probate which is the legal process that transfers ownership of property after a person dies by using a gift deed the property is transferred immediately and the recipient does not have to go through probate to create a gift deed in Texas you will need to include certain information such as the names and addresses of the donor person giving the gift and the recipient a description of the property being gifted and a statement that the transfer is a gift and not a sale the gift deed must be signed by the donor