My mother wants to transfer the deed of her home to her sons now. What's the best way to do it?

If the real property is located in Texas, your mother, as grantor, may transfer the real property via a gift deed or a special warranty deed. After the grantor signs the deed, she should file the deed in the real property records of the county in which the real property is located. Since a gift is only a completed gift upon acceptance by the grantee, it may also be advisable for the sons to sign the deed as well (as grantees). In the alternative, it may be better for your mother to leave the real property to her sons via a testamentary bequest in order to receive the step-up in basis (basis in the real property will now be the value of the real property at the date of death of the owner of the property); this will also eliminate any gift tax consequences of an inter-vivos gift (gifting the property while your mother is living). Also, keep in mind that your mother can only convey that which she owns; if there is another owner (co-owner or co-owners), then any deed that your mother signs will convey only her interest in the subject property, nothing more. I suggest that your mother contact an experienced attorney (possibly even board certified) in either the area of estate planning/probate law, or in residential real property law, in the state where the real property is located to advise her of her options. Good luck!

The best (and only) way your mother should do this is by contacting a quality estate planning lawyer. She can explain what she is trying to accomplish and the lawyer will give her the options and the pros and cons of each. There are a number of concerns, depending on whether your mother wishes to avoid probate, minimize taxes, shelter assets from creditors or qualify for Medicaid. The lawyer can help with these considerations and others, and make sure that this is done properly so there will not be any problems in the future. James Frederick

The real question is why does she want to do this? Does she have creditors, is she trying to get into a nursing home, is she trying to avoid probate, does she want to protect it from a lawsuit, does she simply want to give a gift, etc. Each reason will give a different answer. In addition to the tax consequence my colleague gave, there are many other issues she needs to address and be aware of. If she's trying to qualify for medicaid, this transfer could disqualify her, whereas if she kept it, it would not disqualify her. If she has creditors or a pending lawsuit, this would be fraud. If she's trying to avoid probate, transferring it to her sons in trust would be better. If she transfers it to her sons and they have creditors or a divorce, they could lose the property. If they each own 1/2, should there be an agreement in place governing what happens in the event one of them wants to sell their share? You mentioned that the property is her home. If she transfers it to her sons, she will lose her constitutional homestead exemption so it will no longer be protected from her creditors or lawsuits. She will also lose her homestead tax exemption. Often time people come up with their own solution that they think will accomplish their goals and are unaware of the adverse consequences. I would advise her not to transfer the property until she has consulted with an estate planning attorney in her area so she is aware of the potential consequences of transferring the property. That attorney will be able to draft the necessary deeds as well. Simply finding a fill in the blank deed form is not a substitute to consulting with an attorney. The best way to make the transfer is for her to set up an appointment for a consultation with an estate planning attorney. They will guide her from there.