If you wish to transfer a property with an existing mortgage to a child, the process is more challenging. This does not necessarily require a refinance, but that is the easiest way to do so Generally, when parents want to give their adult children their homes they do so through quitclaim deeds. Quitclaim deeds are useful for enabling relatively quick and simple transfers of property ownership between parents and their adult children. If you wanted to give your adult daughter your home, for instance, you could fill out a simple quitclaim deed form, have it notarized and have your daughter record it. Quitclaim deeds, however, don't eliminate existing mortgage loans on properties; Tax consequences can end up costing your child more money than if she were to inherit the property. Assume you purchased your home years ago for $128000. It has a current market value of $168,000. Because you transferred the home to your child while you were still living, your cost basis, which would be $128000, becomes your child's basis. If your child sells the home, she would owe capital gains taxes on the difference between the sale price and the cost basis, which would be $40K. At a capital gains rate of 15%( If her tax bracket is higher than 15%), that would equal $6k in taxes.