Q: I want to give a home that I own (no mortgage) to a friend. How do I do that? Are there any tax implications?

A: You give a home to someone else by executing a No Consideration Deed. Any real estate attorney can help with preparing such a deed. There are several possible tax implications.

First, most deeds in this state are subject to transfer and recordation tax. A true gift deed, without any mortgage, and without anything else of value changing hands shouldn't incur tax since $0 x tax = $0. That said, Maryland law exempts certain deeds from transfer and recordation tax based on the relationship of the person giving and receiving (e.g., mother to son, brother to brother, husband to wife, etc.) and the clerks may question a $0 consideration deed without an exempt relationship and try to subject it to tax. Someone giving away property should be prepared to document under oath and face at least the possibility of an attempt to tax the deed regardless.

Second, if the property is worth more than $15,000, it will most likely require the filing of a gift tax return with the IRS. Filing a return doesn't necessarily mean that there will be any gift/estate tax (the thresholds are quite high for federal tax) but the return still must be filed for any gift over the annual exemption of $15,000.

Third, if a grantor (the person giving away the property) dies within 2 years of the gift, an unrelated recipient will need to pay inheritance tax in this state (currently 10% of the total value).

Fourth, the person receiving the property may need to pay capital gains tax if & when they sell the property - using the "basis" or starting point of the giver.

The deed itself is relatively straight-forward, but one or more of the taxes described above may be triggered.

You are welcome to call my firm, or any other real estate lawyers in Maryland to get more information. While this post isn't legal advice or a promise to represent I hope that it helps.

A: There will be transfer and recordation taxes based, usually, on the appraised value of the house. There are also likely gift taxes, and you might be better off doing it differently, like through an irrevocable trust or a will.

A: Title transfers trigger many payment obligations, some of which are "taxes." When you make the transfer also determines what is due, and when. For instance, you can transfer now, you can make a conditional transfer (a life estate for you or others), or you can promise a transfer at a later date, or upon death. A fuller answer depends on what and when.