How to Gift Land to a Family Member: What You Need to Know
How to Gift Land to a Family Member: What You Need to Know

How to Gift Land to a Family Member: What You Need to Know


If you’re wondering how to gift a land to a family member, you’re not alone. Many landowners want to pass down property to a family member, but aren’t sure how the process works. This guide will walk you through how to gift a land to a family member, legal and tax considerations, and some alternatives you might not have considered.

Can You Gift Land to a Family Member?

You can gift land to a family member. U.S. property laws allow private landowners to transfer ownership to someone else without requiring a sale. This process is typically handled via a legal document known as a deed, which must be properly prepared and recorded to be valid.

Although it may appear straightforward, your decision is a gift, sale, or inheritance. These can affect various aspects, including taxes and future legal rights. Let’s examine your options.

Gifting Land

When you gift land, you’re transferring ownership without receiving payment. This is typically done out of generosity or as part of a long-term estate strategy. The recipient takes ownership immediately once the deed is signed and recorded. However, depending on the land’s value, you may trigger federal gift tax reporting requirements.

Selling Land to a Family Member

Some landowners sell property to a relative for a nominal amount. While this can still be considered a gift by the IRS (if below market value), it’s treated legally as a sale. You’ll need to provide documentation of the sale price, and capital gains taxes may apply based on the property’s value and your basis

Inheriting Land

A family standing front of their house

If you transfer land after passing, you can include the property in your will or living trust. This method allows the land to pass through your estate, and your heirs may benefit from a step-up in basis, reducing future capital gains tax if they sell the land later.

Step-by-Step: How to Gift Land to a Family Member

Once you’ve decided gifting is the right route, here’s how the process typically unfolds:

  1. Confirm Ownership and Title Status

    Before transferring any property, confirm that you legally own it and that there are no liens, mortgages, or unresolved title issues. If the land has been in your family for years or passed down informally, it’s worth doing a title search to avoid disputes later.

  2. Choose the Right Type of Deed

    The deed is the legal document that transfers property ownership. Choosing the right one is critical:

    • Quitclaim Deed: Fast and simple, this deed transfers your interest in the property but doesn’t guarantee the title is free of claims or defects. It is best used when gifting to a trusted family member.
    • Warranty Deed: This provides the strongest protection for the recipient by guaranteeing the property has a clean title. It is commonly used in real estate transactions with strangers, but it is still an option for gifting
    • Grant Deed: Used in some states, this offers basic title assurances without the full protections of a warranty deed.

    3. Not sure which one applies in your state? A local real estate attorney can guide you.

  3. Draft and Sign the Deed

    The deed must include:

    • Legal names of the grantor and grantee
    • A clear property description
    • Statement of intent to gift the property
    • Signatures of all current owners
    • Notarization to validate the document

    4. Some states may require additional affidavits or disclosures, such as property condition forms or transfer declarations.

  4. Record the Deed with the County

    To complete the transfer, you must file the deed with the county recorder or clerk’s office where the property is located. There may be a small recording fee. Once recorded, the land is officially transferred—and your family member is now the legal owner.

Understanding the Tax Implications of Gifting Land

Gifting land is generous, but depending on the property’s value, it could trigger tax consequences for both the giver and the recipient.

Federal Gift Tax: What to Know

The IRS allows a gift tax exclusion of $18,000 per recipient (in 2024). This means you can gift up to that amount each year without filing a gift tax return.

If your land is worth more than $18,000, you must file IRS Form 709. However, you likely won’t owe any taxes unless your total lifetime gifts exceed the $13.61 million exemption (2024).

Capital Gains for the Recipient

When you gift land, your cost basis (what you paid initially) carries over to the recipient. This can lead to significant capital gains tax if they later sell the land for more than that amount. By contrast, inherited land receives a step-up in basis, which is another reason some transfer land via inheritance instead.

State-Specific Taxes

Some states impose transfer taxes, documentary stamp taxes, or local fees when land changes hands, even if it’s a gift.

Consult a local attorney or accountant familiar with your state’s real estate laws.

Real estate appraisal sign in front of a clock

Legal and Financial Considerations

Before signing over that piece of land, take a moment to cover these key issues:

  1. Run a Title Search

    A title search helps verify that the property is free of liens, easements, or ownership disputes. If your land has been in the family for generations, lingering issues may need to be resolved before a clean transfer

  2. Get an Appraisal

    An appraisal will determine the fair market value of the land, which is helpful for:

    • Tax reporting (gift tax thresholds)
    • Estate planning
    • Ensuring transparency between family members
  3. Consider Title Insurance

    While not required, title insurance protects the new owner from future claims against the property. It's beneficial if there's any uncertainty about past ownership or property boundaries.

  4. Talk to a Lawyer or Accountant

    This is a significant financial and legal transaction. A real estate attorney can ensure the deed is properly prepared, while a CPA or tax advisor can help navigate the gift tax and capital gains implications.

Alternatives to Gifting Land

Gifting land to family is a great option in many cases, but it's not the only one. Here are two alternatives to consider:

Option 1: Donate Your Land to Charity

If your land isn’t being used, or you're looking for a way to make a lasting impact, you may want to donate it to a nonprofit organization.

At Giving Property, we help landowners donate real estate in a way that benefits the causes they care about while unlocking tax advantages.

By donating land:

  • You may qualify for a fair market value tax deduction
  • You avoid ongoing property taxes and maintenance
  • You create a meaningful charitable legacy

See how land donation works →

Option 2: Include the Land in Your Estate Plan

If you're not ready to give up the land, you can include it in your will or trust. This ensures the property transfers to your loved one after your death. This approach may offer better tax advantages for your heir, especially with the step-up in basis

Gifting land to a family member can be a powerful act of generosity, legacy, and love—but it should be done thoughtfully. Every step matters, from selecting the right deed to understanding tax rules and recording the transfer properly.

Whether gifting land to your children or looking for a more charitable route, the key is planning and getting professional advice.

If you're exploring alternatives to gifting land or your property no longer serves a personal need, consider donating it to charity. At Giving Property, we facilitate the donation process, making it simple, secure, and impactful.

We'll handle the paperwork, title transfer, and even help you claim your tax deduction.

Ready to donate your land? Start here.