Transfer Property Prior to Death

Up until 2012, Tennessee was one of 3 remaining states which had a gift tax which imposed limits on how much an individual could give away each year.  Your questions has a lot of different issues in that the transfer of real estate is normally accomplished by quitclaim deed to avoid paying Tennessee's 37.5 cents per $100 transfer tax.  However, transferring real property also would involve determining if this is the best route because the property may be appreciated (subject to capital gains tax upon sale at 15%) and therefore the best route may be to hold onto the property until your passing to receive a step-up in basis. This answer is for general informational purposes only and is not intended to constitute legal advice or a recommended course of action in any given situation. This answer is not intended to be, and should not be, relied upon by the recipient in making decisions of a legal nature with respect to the issues discussed herein. The recipient is encouraged to consult independent counsel before making any decisions or taking any action concerning the matters in this answer. This answer does not create an attorney-client relationship between the author (John R. LaBar)/Henry, McCord, Bean, Miller, Gabriel & LaBar, P.L.L.C. and the recipient.