I don't know what you mean by "gifted."  If you mean gifted by deed, this has one consequence.  If you mean gifted by will and the person has not died, it has a different consequence.  If you mean gifted by will and the person has died, then Mr. Waid's answer applies.If the homeowner is still alive, I suggest he or she consult a lawyer and make all the legal paperwork consistent with his or her current intent.  Allowing legal documents to be inconsistent leads to litigation and unnecessary expense.  It is far cheaper to engage a lawyer to prepare a solid life plan than to clean up a mess later.