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Live Oak

Is The Tennessee Real Estate Transfer Tax Applicable With Estate Planning Deed Gifts?

Monday, December 19 2011 07:36 PM

Does the Tennessee Real Estate Transfer Tax apply to deed gifts transfering ownership interest in a property to another part owner/family partner in the same property when done for estate planning purposes?  

In this particular case would the Tennessee Real Estate Transfer Tax apply in the deed gift ownership transfer from parents to children in which the parents transfer $13,000 dollars per parent to their son and his wife who were part owners in the property from the beginning intial purchase.  

The deed gifting is being down for estate planning purposes to gift ownership in land without incurring the federal or state gift tax.  

This seems to be a very vague and unclear area our county Register of Deeds is not clear on or sure if the tax applies.

Thanks in advance.  

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