Legal Question in Real Estate Law in Texas

How to Transfer Property

What is the best way to transfer ownership of a family ''farm''?

Should a property title transfer be done over time by gifting the property (which would involve federal tax liability)? Or can it be sold for a small amount of money (less then the actual value)? Or can it simply be transferred over? There is a clear deed holder. There are no outstanding liens.


Asked on 6/14/03, 2:42 am

1 Answer from Attorneys
Cheryl Rivera Smith The Smith Law Firm

Re: How to Transfer Property

In many cases, depending on value, it is best to place the farm in a Family Limited Partnership and in other cases it is just best to inherit outright at a "stepped-up basis." Transferring title prematurely may cause unnecessary capital gains taxes in the future. Estate planning is complicated and should not be done haphazardly. Each individual situation is unique and if you don't have an estate planning attorney, I will be glad to give you a free initial phone consultation to discuss your circumstances in more detail.

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Answered on 6/14/03, 2:37 pm


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