What You Need to Know About Gift Deeds in Ohio
Ohio has different requirements for the gift deed process. Here’s what you need to know about forms and requirements for gift deeds in Ohio.
Ohio has laws outlining requirements, and processes grantors and grantees must follow. Both parties must fill out the county, state, and federal-specific forms during the gift deed process.
What is a Gift Deed in Ohio?
A gift deed is a legal document stating one party (the grantor) will transfer property to another party (the grantee) as a gift. A gift deed does not require monetary compensation or consideration. A grantor can use a gift deed to transfer property ownership to family members, charities, or non-profits.
Related: How to Get a Restraining Order in Ohio
Gift Deed Requirements in Ohio
Ohio requires gift deeds to have the following listed on the deed:
- Grantor and grantee’s full name,
- Grantor and grantee’s marital statuses,
- Grantor and grantee’s mailing addresses,
- Vesting (how a grantee holds property title),
- Instrument granting title,
- Document’s volume and page or instrument number, and
- Name of the county grantor filed the deed.
The transferred property will result in a grantee either having sole ownership or co-ownership of the property. Two or more parties can split co-ownership by having a set percentage of ownership. Grantees can also hold residential property in Ohio through tenancy in common or survivorship tenancy.
Tenancy in common is when a grantor transfers an estate to two or more parties. The transfer in property does not mean that each party receives an equal share of the property title. Survivorship tenancy is when one title owner dies, the estate transfers to the other co-owners. This estate is not included in the inheritance because the title will directly go to the other owner(s).
Related: Ohio Surrogacy Laws & Legal Process
Gift Deed Laws in Ohio
Ohio has several laws outlining gift deed requirements. One law involves dower rights in gift deeds. Dower rights in Ohio allow spouses to receive one-third interest of their spouse’s share of the property their spouse owns.
There are several exceptions to dower rights in Ohio, including:
- An Ohio court bars a spouse from asserting dower rights due to infidelity or abandonment,
- A spouse voluntarily waived their dower rights,
- Divorce and/or,
- The original owner dies.
If the spouse with the ownership title dies, their spouse can still assert dower rights if they did not relinquish dower rights in specific situations. Dower rights cases can be complex and may require the help of an attorney.
Ohio also has laws surrounding taxes for gift deeds. Grantees do not legally need to declare the property on their tax forms. However, if the property becomes a source of income after the grantee has received the title from the grantor, the grantee is responsible for paying federal and state taxes on the property.
Ohio does not have state gift taxes, but there is a federal gift tax for all property received through a gift deed. Federal laws state that while the grantor is responsible for paying the federal gift tax, a court can still hold a grantee liable if the grantor does not pay the taxes. Gifts valuing less than $15,000 are not subject to federal gift tax returns, although the IRS can still dispute this. In case of a dispute, it is advised for a grantor to file Form 709.
Gift Deed Process in Ohio
Grantors must fill out the deed with all required information and outline restrictions with ownership. The grantor must sign the deed before a notary public for Ohio to recognize the deed as legitimate. After signing and notarizing the gift deed, a grantor will submit the deed to their county auditor’s office, and the auditor will put the grantee on the tax list for that county.
The grantee must ensure that the county’s recorder’s office records the deed. Every county has different filing fees. Grantees must sign a Conveyance Fee Statement to include with the deed when filing for a gift deed.
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