Transfer of Real Estate for $1

What is the name of your state (only U.S. law)? Indiana

What, if any, would be the consequences of selling a parcel of real estate to a direct relative for the consideration of $1?

The approximate market value of the property is $200K.

If the goal were to avoid having assets, it could be unwound as a transfer without fair value. Otherwise it is a gift of $199,999 to the relative who would take the giver's basis plus any gift tax paid.

tranquility said:

If the goal were to avoid having assets, it could be unwound as a transfer without fair value. Otherwise it is a gift of $199,999 to the relative who would take the giver's basis plus any gift tax paid.

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The goal is to transfer title of the property between direct family members while avoiding any nonessential taxes.

Tried researching "transfer without fair value". Not sure what this references.

One issue that comes tom mind is that you could cloud the title, making the property unmarketable.

Tried researching "transfer without fair value". Not sure what this references.

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To avoid debtors(including trying to get medicaid), sometimes people transfer assets without getting fair value for them. These can be unwound.

The goal is to transfer title of the property between direct family members while avoiding any nonessential taxes.

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Then, you've made a gift. If there are transfer taxes for this in the state, you will need to look at state laws regarding gifts. Some states for property tax purposes will bring up the value of the property to Fair Market Value on such a transfer. (In CA, certain transfers would not be valued to FMV, I don't know Indiana.)