My Account Deeds.com Real Estate Deeds

Illinois Gift Deed

Gifts of Real Property in Illinois

Gift deeds convey title to real property from one party to another with no exchange of consideration, monetary or otherwise. Often used to transfer property between family members or to gift property as a charitable act or donation, these conveyances occur during the grantor's lifetime. Gift deeds must contain language that explicitly states that no consideration is expected or required. Ambiguous language or references to any type of consideration can make the gift deed contestable in court.

A lawful gift deed includes the grantor's full name and marital status, as well as the grantee's full name, marital status, vesting information, and mailing address. Vesting describes how the grantee holds title to the property. Generally, real property is owned in either sole ownership or co-ownership. For Illinois residential property, the primary methods for holding title are tenancy in common, joint tenancy, and tenancy by the entirety. An estate conveyed to two or more unmarried persons is considered a tenancy in common, unless otherwise specified (765 ILCS 1005/1). A conveyance to a married couple vests as tenancy by entirety unless otherwise specified (765 ILCS 1005/1c).

As with any conveyance of realty, a gift deed requires a complete legal description of the parcel. Recite the source of title to maintain a clear chain of title, and detail any restrictions associated with the property. In Illinois, if the signer is not personally known to the notarial officer, a witness must acknowledge and sign the deed (765 ILCS 5/24). All signatures must be original.

In Illinois, most conveyances of real property are subject to a Real Estate Transfer Tax and require a Real Estate Transfer Declaration (Form PTAX-203). However, because a gift deed transfers real property from one party to another with no exchange of valuable consideration, this type of conveyance is exempt from the tax and does not require a declaration (35 ILCS 200/31-45e). Record the completed gift deed with the recorder's office where the subject property is located. Contact the same office to confirm recording fees and accepted forms of payment.

With gifts of real property, the recipient of the gift (grantee or donee) is not required to declare the amount of the gift as income, but if the property accrues income after the transaction, the grantee is responsible for paying the requisite state and federal income tax [1].

In Illinois, there is no state gift tax. Gifts of real property in Illinois are, however, subject to the federal gift tax. The person or entity making the gift (grantor or donor) is responsible for paying the federal gift tax; however, if the donor does not pay the gift tax, the donee (grantee) will be held liable [1]. For questions regarding state and federal tax laws, consult a tax specialist.

In accordance with federal law, individuals are permitted an annual exclusion of $15,000 on gifts. This means that gifts valued below $15,000 do not require a federal gift tax return (Form 709). Even so, donors should consider filing one for many gifts of real property [2].

This article is provided for informational purposes only and is not a substitute for the advice of an attorney. Contact an Illinois lawyer with any questions about gift deeds or other issues related to the transfer of real property.

[1] http://msuextension.org/publications/FamilyFinancialManagement/MT199105HR.pdf

[2] https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-taxes

Deeds.com Illinois Gift Deed Forms Have Been Updated as Recently as Thursday October 17, 2019

4.7 out of 5 (910 Reviews)

What others like you are saying:


David A. said: Excellent service. I have been looking for a beneficiary deed for quite a wile with no success. My friend found your site and I was overjoyed. Fast, easy to use, and understand.I recommend this site to anyone.

Reply from Staff: We appreciate your business and value your feedback. Thank you. Have a wonderful day!


ronnie y. said: nice to get everything I need for the county that the property is located.

Reply from Staff: Thank you for your feedback. We really appreciate it. Have a great day!


Seth T. said: THE BEST WEBSITE I HAVE EVER SEEN FOR LEGAL DOCUMENTS!!! THANKS

Reply from Staff: Thanks Seth, we appreciate your feedback.


Steven C. said: Easy but a little overpriced

Reply from Staff: We appreciate your business and value your feedback. Thank you. Have a wonderful day!


sonja E. said: It's very easy to find your way around on deeds.com, Excellent layout on this website and user friendly!

Reply from Staff: Thank you!


Carol F. said: Instructions were easy to follow and it was reasonable

Reply from Staff: Thank you for your feedback. We really appreciate it. Have a great day!


Select County where the property is located.

Illinois Gift Deed Form