[TX] Can a co-owner gift their share by deed to the other owners and create survivorship without all owners signing?

TX Real Estate Law

Legal Eagle

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Based on what you’re trying to do, only the owner who is giving up their interest needs to be listed as the grantor. The two remaining owners would be listed as grantees. The other co-owners do not need to sign or be listed as grantors because they are not conveying anything.

As for the deed type:

A gift deed is commonly used when no money is exchanged.
A warranty deed is also acceptable for a gift and provides stronger title guarantees. The deed type itself does not change how taxes are handled.

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This property in Texas is co-owned by three people. One co-owner wants to transfer their share to the other two. Can the deed list only the transferring owner as the grantor and the other two as grantees, or do all three need to be listed as grantors?

Lexi, Chatbot

I understand. Has the deed already been signed, and are there any special terms we should know about?

Not signed yet. It’s intended as a gift. No other special terms.

Legal Eagle

Hello! Legal Eagle here, and I am an attorney specializing in your area of law. Thanks for explaining. I’m happy to help. First, do you know whether the property is held as joint tenants with right of survivorship or as tenants in common?

I believe it’s joint tenancy, but I don’t see that clearly stated on the deed.

Legal Eagle

As for the deed type:

A gift deed is commonly used when no money is exchanged.
A warranty deed is also acceptable for a gift and provides stronger title guarantees. The deed type itself does not change how taxes are handled.

Does it matter whether the property was joint tenancy or tenants in common for this transfer?

Legal Eagle

Yes, it matters mainly for survivorship rights. A transfer by one joint tenant can break the original survivorship arrangement. However, once the transferring owner conveys their share, the new deed can create a new ownership structure for the remaining owners.

If the goal is for the remaining two owners to have survivorship rights, the deed must clearly state that.

Where do I add that language, and what should it say?

Legal Eagle

You add it directly after listing the grantees and before the legal description. For example:

“To have and to hold as joint tenants with right of survivorship, and not as tenants in common.”

If the grantees are married, another option is:

“To have and to hold as community property with right of survivorship.”

What’s the difference between those two?

Legal Eagle

Both avoid probate. The key difference is taxes.

Community property with right of survivorship gives a full “step-up” in tax basis on the entire property when one spouse dies.
Joint tenancy only provides a step-up on the deceased spouse’s half.

A step-up means the property’s tax value resets to current market value, which can reduce capital gains taxes if the survivor later sells. This does not affect property taxes.

Are there downsides to community property?

Legal Eagle

Yes. Both spouses must consent to sell or transfer, and community debts may attach to the property. With joint tenancy, each owner can act independently, but doing so can destroy survivorship.

If this transfer is a gift and under the gift tax threshold, is a warranty deed still okay?

Legal Eagle

Yes. If the value is under the gift tax threshold, no gift tax is owed. Using a warranty deed is perfectly fine and does not create additional tax consequences.

Great, thank you. That answers everything.

Legal Eagle

You’re welcome. I’m glad I could help.

Legal Eagle

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