Intrafamily Property Transfers: A Broker's Class Notes

In three decades around Florida real estate I have signed off on a lot of family transfers, and I have also seen the cleanup when they go wrong. So treat this like class notes: three instruments, three very different outcomes. The law here is Chapter 201 of the Florida Statutes for the transfer tax and the federal gift and basis rules for everything downstream. Take notes on the basis rules especially — that is where families lose real money.

Three ways to move a home between relatives

Every intrafamily transfer in Florida ultimately rides on one of three instruments: a deed signed during life (usually a quitclaim), an enhanced life estate deed (the “lady bird deed”), or a revocable living trust. All three avoid probate. They differ sharply on taxes.

Florida documentary stamp tax: the mortgage trap

Florida charges documentary stamp tax of 70 cents per $100 of consideration on deeds (s. 201.02, Florida Statutes). The trap: the statute counts the amount of any mortgage or other encumbrance as consideration, “whether or not the underlying indebtedness is assumed.” So gifting a home to a relative for $0 does not make the tax $0 if there's a loan on it.

Two narrow exemptions worth knowing: s. 201.02(7) exempts transfers between spouses or former spouses of the marital home in a dissolution, and certain homestead transfers between spouses where the only consideration is the existing mortgage. Neither extends to transfers to children.

Federal gift tax: usually paperwork, not payment

Florida has no state gift tax. Federally, if the equity you shift to any one person in a year exceeds the annual exclusion — $19,000 for 2026 (IRS) — a gift tax return (Form 709) must be filed. Because the lifetime exemption is far larger, families rarely owe tax out of pocket, but the filing itself is mandatory. A home transfer almost always crosses the $19,000 line.

The step-up-in-basis trap

This is where my strongest caution lives. Transfer the home during life by quitclaim and the recipient takes your original cost basis (“carryover basis”). Let it transfer at death — via lady bird deed, trust or will — and the recipient's basis steps up to fair market value on the date of death.

Homestead, Save Our Homes, and Medicaid

Two more reasons not to rush a lifetime deed. First, giving away ownership can end your homestead exemption and reset the Save Our Homes assessment cap for the new owner, which can raise the property-tax bill sharply. Second, an outright gift of the home starts Florida Medicaid's five-year lookback clock — a poorly timed transfer can delay eligibility for long-term-care benefits. An elder-law attorney should review any transfer where future care is a consideration.

Divorce, siblings, and other title changes

Not every intrafamily transfer is a parent-to-child gift. Two other patterns come up constantly:

• Divorce (“dissolution”). When one spouse keeps the marital home, the departing spouse deeds their interest over — and if the deed is never recorded, both names stay on title, which surfaces years later at refinance or sale. Florida helps here: s. 201.02(7)(a) exempts marital-home transfers between spouses or former spouses in a dissolution from doc stamps, even with a mortgage.
• Sibling buyouts after an inheritance. Three heirs inherit a house; one keeps it and buys out the other two. Money changing hands means the transfer is a sale for tax purposes — doc stamps on the consideration, and the selling siblings measure any gain from their stepped-up basis, which is why acting soon after the estate settles usually keeps the taxable gain small.

Whatever the scenario: the deed only works if it is recorded with the Clerk of Court in the county of record (Duval County Clerk for most Jacksonville property). The classic mistakes — wrong deed type, an unrecorded signed deed in a drawer, missed county forms — are exactly what a modest attorney fee prevents.

So which route fits?

• Quitclaim during life — when the recipient needs ownership now and the basis and homestead consequences have been priced in.
• Lady bird deed — when the goal is “the kids get the house when I'm gone” with no probate and no loss of control. My full guide: the Florida lady bird deed, explained.
• Revocable trust — when the home is one piece of a larger estate plan with conditions, multiple properties or blended-family considerations.

Questions about how a transfer affects a future sale or the property's marketability? That part is my lane — reach out any time.

Frequently asked questions

Can I just quitclaim my house to my child in Florida?

You can, and the deed itself is simple. But if the home carries a mortgage, documentary stamp tax is due on the loan balance under s. 201.02, Florida Statutes, and your child inherits your original cost basis, which can create a large capital-gains bill when they sell. Most families are better served comparing a lady bird deed or trust first.

Do I owe gift tax if I give my house to a relative?

Florida has no gift tax. Federally, a gift above the $19,000 annual exclusion (2026) requires filing IRS Form 709, but because of the large lifetime exemption, tax is rarely owed out of pocket. The filing is still mandatory.

Will transferring my home affect my property taxes?

It can. A lifetime transfer can end your homestead exemption and reset the Save Our Homes cap for the new owner, raising the assessed value to market. Transfers that complete at death, such as a lady bird deed, leave your homestead treatment in place during your life.

This guide is educational information for Florida homeowners, not legal or tax advice. Deed drafting, Medicaid planning and gift-tax filings are attorney and CPA work — please engage a Florida estate or elder-law attorney before signing or recording anything.