Can You Gift a House to Someone in Boca Raton, Florida?

February 1, 2025 – Barry D. Siegel, Esq.

Boca Raton Estate Planning lawyer answers, "Can you gift a house to someone?" Call (561) 955-8515 to schedule a confidential, complimentary consultation.

When thinking about how to transfer wealth to loved ones, the idea of gifting your house might seem like a thoughtful and straightforward choice. Whether you’re seeking to help a family member financially, simplify the Probate process or provide a sense of permanence to your legacy, this gesture can hold emotional significance. However, gifting a property is not as simple as handing over the keys. Financial, legal and tax considerations can create unexpected complications.

At The Siegel Law Group, P.A., we help families throughout Boca Raton and South Florida protect what matters by making informed Estate Planning decisions customized to their unique needs and goals.

Can you gift a house to someone in Boca Raton, FL?

It’s a complex question that demands a thorough understanding of the potential risks and downsides. This blog, from a Florida Estate Planning lawyer, explains.

What Does Gifting a Property Entail?

Under Florida law, gifting means transferring ownership of real estate without receiving payment or any other form of equivalence in return. While gifting property is legally permissible in Florida, the process involves specific documentation, including the preparation of  a deed—typically a quitclaim deed or warranty deed—outlining the transfer and recording it with the county recorder’s office.

Though this process might sound straightforward, it’s often far more complex due to potential tax implications, obligations to the new owner and eligibility concerns for programs like Medicaid.

What Are the Disadvantages of Gifting a Property?

As we tell our clients, transferring property ownership can be a well-meaning gesture. However, it comes with a number of pitfalls you should weigh carefully.

1. Tax Planning Implications

  • Gift Tax Requirements: According to federal law, any property gifted with a value exceeding the annual exclusion limit of $19,000 per recipient (as of 2025) requires filing a gift tax return. While not everyone will owe taxes due to lifetime exemption limits, the reporting obligation still adds an administrative burden. The extra paperwork is also something worth discussing with your Estate Planning attorney.
  • Capital Gains Taxes for the Recipient: One of the biggest drawbacks of gifting property is the impact on capital gains taxes when the recipient later sells the house. They inherit your original cost basis for the property, not its current market value. For example, if you purchased the house decades ago for $100,000 and it’s now worth $500,000, your recipient could face considerable taxes on the $400,000 gain when selling. By contrast, property inherited after your passing typically benefits from a “stepped-up basis,” reducing or even eliminating these taxes.

2. Loss of Control Over the Property

  • Once the property is legally gifted, the new owner has complete control over it, meaning you can no longer dictate how or when the property is used, sold or modified. If the recipient’s financial constraints lead them to sell the home or use it in ways that don’t align with your intentions, there’s no legal way for you to reverse the transfer.
  • Additionally, gifting your home while you’re still living can leave you without a fallback if you planned on continuing to use or live in the property. Retaining a “life estate” may mitigate some of these issues, but it’s important to structure it correctly with the guidance of a Florida Estate Planning attorney.

3. Potential for Family Disputes

  • Gifting property to one family member, such as a child or grandchild, can inadvertently create resentment among other heirs who may perceive this as favoritism. It can lead to lingering tensions within the family, especially in the absence of fair communication or Estate Planning efforts.
  • Even if family members avoid outright conflict, heirs may worry about losing their stake in your Estate, leading them to question your intentions or attempt legal challenges down the road.

4. Consequences for Medicaid Eligibility

  • Gifting property may jeopardize Medicaid benefits—an especially urgent concern if you anticipate needing long-term care assistance in the future. Under federal guidelines, including those adopted by Florida, Medicaid applies a “look-back” period of five years to financial transactions. If you gift your home during this window, it could result in penalties, such as a period of ineligibility for Medicaid benefits.
  • For seniors in South Florida considering property gifting and Medicaid Planning, consulting an Elder Law attorney prevents them from inadvertently losing access to critical financial assistance.

5. Financial Burden for the Recipient

  • A gifted house may come with costly obligations for the new owner, including property taxes, homeowners’ insurance, maintenance requirements and possible homeowner association (HOA) fees. These recurring expenses could become a financial strain if the recipient isn’t adequately prepared.
  • If the property also has outstanding mortgages or liens, those debts can also transfer to the recipient unless handled properly during the gifting process, creating further complications.

6. Legal Documentation and Risk of Errors

  • The legal and administrative process of property gifting is more involved than many assume. Any misstep—such as an improperly filed deed or unintentional error—can delay the transfer or nullify it altogether.
  • Work with an experienced Estate Planning attorney who will create documents that comply with Florida’s legal standards and safeguard your interests and those of your recipient.

Seeking Alternatives to Gifting

Instead of outright gifting a property, consider alternatives that might achieve your goals with less risk. For example:

  • Creating a Revocable Living Trust allows you to retain control and use of the home during your lifetime while passing it to your beneficiaries seamlessly after your death.
  • Using a Medicaid Asset Protection Trust (MAPT) can safeguard your home while maintaining your eligibility for nursing home benefits.
  • Adding a family member as a Joint Tenant with Rights of Survivorship can transfer the property automatically upon your passing, without going through probate.
  • Retaining a Life Estate allows you to stay on the property for the duration of your life, even after gifting it.

Each of these approaches comes with its own set of pros and cons, so be sure to explore them with your family and a knowledgeable attorney.

Searching for a Florida Estate Planning Lawyer? Protect What Matters with The Siegel Law Group, P.A.

Have you been typing, “Estate Planning lawyers near me” or “Boca Raton Estate Planning lawyers” into your search bar?

At The Siegel Law Group, P.A., we understand that every family’s needs and circumstances are unique. With over 100 years of combined experience in Estate Planning and Elder Law, we offer a full range of Florida Estate Planning services. Whether you live in Boca Raton or anywhere else in Florida, contact us to discover how we can help you protect your assets, plan for the future and resolve complex legal challenges.

Gifting property is just one of the areas where our attorneys can offer knowledge and support. We have also assisted clients in the following areas: Probate, Trust Administration, Asset Protection, Wills, Trusts, Long-Term Care Planning, Medicaid Planning and Veteran’s Benefits Planning.

Schedule a confidential complimentary consultation with our law firm today to discuss your goals, explore your options and protect what matters at (561) 955-8515(561) 955-8515 or complete our online form. Together, we’ll establish a personalized Estate Plan that safeguards your family, your valuable assets, your long-term care and your peace of mind.

I also invite you to pick up a copy of my book, Caught in the Middle: Juggling Your Elderly Parents’ Affairs While Raising Your Own Family, for just 99 cents for information about Elder Care and Medicaid Planning.

Our law firm serves Boca Raton and South Florida. We are here for you and by your side 24/7 to protect what matters. 

Copyright © 2025. The Siegel Law Group, P.A. All rights reserved.

The information in this blog post (“post”) is provided for general informational purposes only and may not reflect the current law in your jurisdiction. No information in this post should be construed as legal advice from the individual author or the law firm, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting based on any information included in or accessible through this post without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from a lawyer licensed in the recipient’s state, country, or other appropriate licensing jurisdiction.

The Siegel Law Group, P.A.
2500 N Military Trail Suite 470
Boca Raton, FL 33431
(561) 955-8515(561) 955-8515
siegellawgroup.com

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