Being gifted SFH in Oregon

[Louis DeNitto]

My wife's elderly grandmother, who owns her home outright, has decided to gift her home to my wife. If I'm not mistaken, she has even already mailed her the deed. Her grandmother will continue to live in the home indefinitely. My wife and I live in Texas. What is the best way to approach this from a property tax standpoint?

[Benjamin Weinhart]

If you own the home under the eyes of the state, you are responsible for the property tax on the home. If it's possible still, it would be better for the grandmother to keep possession of the house and have the ownership transfer upon her death due to the step-up in basis the house would get. This would get around a potentially giant tax bill when going to sell the home if she isn't otherwise subject to estate tax already. You may be able to ask for her to pay the property tax portion, but that's more a matter of opinion if you ask me.