Legal Question in Real Estate Law in New Hampshire

There are several areas of law that get involved in your situation. She has certain rights to make "gifts," but that impacts her lifetime gift allowance. She can sell it to you, take back a mortgage and then use "gift forgiveness" as a technique to reduce the debt over a period of time with potentially no tax implications. Another area of concern is the "basis" in the house. How will it be valued for tax purposes (federal) when it is transferred. Is there a reason for her to have gain or loss from the sale? Is there a benefit to you to have a higher basis?

In summary, you're going to need tax and legal advice to make an intelligent decision based upon the unique facts and figures of your particular case.