Land records · Parcel maps · October 5, 2026
What Is a Gift Deed? Transfers With No Payment
What is a gift deed? A deed that transfers property for no payment, often within a family. See what it must say, the tax effects, and how it is recorded.
What is a gift deed? It is a deed that transfers real estate from one person to another without any payment in return. The person giving the property is the donor or grantor, and the person receiving it is the donee or grantee. Gift deeds are most common between parents and children, between spouses, and to charities. They are simple on paper, but they carry tax and planning effects worth understanding before anyone signs. This page is general land-records background, not legal or tax advice.
What makes it a gift deed
Most deeds state a “consideration,” the payment or value exchanged. A gift deed states instead that the transfer is made for love and affection, or for no consideration, or it recites a nominal amount. Many states do not have a separate gift deed form; the transfer is made with a warranty, grant, or quitclaim deed that simply shows no payment. What matters is that the donor intends to give the property now, the deed is delivered, and the donee accepts it.
What a gift deed should include
- The full legal names of the donor and donee.
- A statement that the transfer is a gift or is made without payment.
- The legal description of the property and its parcel number.
- How the donee will hold title, if there is more than one.
- The donor’s signature and a notary acknowledgment.
- Any transfer tax form or exemption statement the county requires.
Tax effects to know about
- Federal gift tax reporting. A gift of real estate worth more than the annual gift tax exclusion generally requires the donor to file a federal gift tax return. Tax is rarely owed because of the large lifetime exemption, but the filing still matters.
- Cost basis. A donee usually takes the donor’s original cost basis. Property inherited at death often gets a basis reset to its value at the date of death. For a home that has gained a lot of value, that difference can mean a much larger capital gains tax when the donee sells.
- Property tax reassessment. Some states reassess property when ownership changes, even as a gift, and others offer exemptions for transfers between family members. Check with the county assessor.
- Transfer taxes. Many states and counties exempt gifts from real estate transfer tax, but you usually have to claim the exemption on a form.
Because of the basis rule, families sometimes compare a gift deed with a transfer on death deed or a life estate deed, which pass property at death instead.
Gifts of property with a mortgage
Giving away property does not remove the loan. The mortgage or deed of trust stays attached to the land, and many loans include a due-on-sale clause that can be triggered by a transfer. Federal law protects some family transfers from that clause, but the details depend on the situation, so talk with the lender first.
Can a gift deed be undone?
Once a gift deed is signed, delivered, accepted, and recorded, the donor generally cannot take it back on their own. Courts may set aside a gift for fraud, undue influence, or lack of capacity, but that requires a lawsuit. Treat a gift deed as permanent.
Finding a recorded gift deed
Gift deeds are recorded with the county recorder or register of deeds like any other deed. They often show a zero or nominal transfer tax, which is a clue when you are scanning an owner’s history in the index. See how to get a copy of my deed for ordering copies.
What is a gift deed FAQ
Do I have to pay tax on a gift deed?
The recipient usually does not owe income tax on the gift. The donor may need to file a federal gift tax return if the value exceeds the annual exclusion, though tax is rarely due.
Is a gift deed better than leaving property in a will?
It depends. A gift transfers the donor’s cost basis, while inherited property often gets a stepped-up basis. That can make inheritance better for appreciated property.
Can a gift deed be revoked?
Generally not, once it is delivered, accepted, and recorded. A court may cancel one for fraud, duress, or lack of capacity.
Does a gift deed need to be notarized?
Most counties require a notary acknowledgment before they will record any deed, including a gift deed.
Can I gift a house that still has a mortgage?
Yes, but the loan stays attached to the property, and a transfer can trigger a due-on-sale clause. Talk with the lender before recording.