Not pay taxes is always illegal, but as the sibling poster said, taxes aren't required for the gift. The state will still probably require the recipient to pay

Not pay taxes is always illegal, but as the sibling poster said, taxes aren't required for the gift. The state will still probably require the recipient to pay taxes to transfer the title as if you paid full market value. I say probably because it isn't always market value that's required and there is some discretion involved. The gift exemption is one way in which the wealthy already avoid existing estate taxes.