Mather, PA asked in Real Estate Law for Pennsylvania

Q: Can a person give a relative a house for no cost?

Related Topics:
1 Lawyer Answer
  • Allentown, PA
  • Licensed in Pennsylvania

A: Sure. However, a transfer without being paid full value is a "gift" and is, accordingly, subject to Federal gift tax if, as would be expected, the value of the house exceeds the permissible annual gift tax exemption levels or you fail to file a gift tax return and take this as a reduction against what otherwise would be future estate tax exemptions. If a qualified estates and gifts attorney is consulted, it is most probable that an appropriate return can be filed and no gift tax would be assessed. Also, there are other things in a transaction like this that would need to be discussed with the lawyer. The question, as phrased, is very simple and, as such, gets a simple one word answer. However, the transaction itself is not so simple.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.