For many Floridians, passing property to loved ones after death is a top priority. Yet, the probate process can complicate matters, causing delays, additional costs, and stress for heirs.
Thankfully, Florida offers a powerful tool to avoid probate and ease the transition of property: the Lady Bird Deed, also known as an Enhanced Life Estate Deed. This estate planning option allows homeowners to transfer property while retaining control during their lifetime. Here's a closer look at why Lady Bird Deeds have become a popular choice for people seeking efficient and secure property transfers.
What is a Lady Bird Deed?
A Lady Bird Deed is a type of life estate planning deed that allows a homeowner (the life tenant) to retain full control of their property during their lifetime. The life tenant can live in, sell, mortgage, or even give away the property without needing the consent of the future beneficiaries (remaindermen). However, upon the life tenant's death, the property automatically transfers to the remaindermen without the need for probate, saving time, money, and reducing potential stress for family members.
The ability to bypass probate is one of the main reasons Lady Bird Deeds are widely used in Florida estate planning. The probate process, which involves court oversight, can take months to complete and rack up legal fees. By using a Lady Bird Deed, homeowners can ensure a seamless transfer of their property, allowing their beneficiaries to avoid these complications entirely.
Who Should Consider a Lady Bird Deed?
While Lady Bird Deeds offer clear benefits, they are not suitable for everyone. Here are some groups of people who may benefit the most from consulting an estate planning lawyer about this option:
- Elderly Homeowners. Older Floridians who want to maintain control of their home while ensuring it goes to the right person after they pass should consider a Lady Bird Deed. It allows them to avoid probate while still retaining full rights to the property during their lifetime.
- Families with Significant Real Estate. Homeowners who have multiple properties or valuable real estate assets may find a Lady Bird Deed useful to ensure that each property is smoothly transferred to the intended beneficiaries without delays.
- Medicaid Applicants. Lady Bird Deeds can also aid in Medicaid planning. Typically, giving away property can affect Medicaid eligibility due to the look-back period. However, because the Lady Bird Deed doesn't constitute a completed gift until the life tenant's death, it won't trigger penalties or disqualify the homeowner from receiving Medicaid benefits.
- Property Owners Seeking Simplicity. For individuals who want a straightforward estate planning tool that ensures their home passes to loved ones without probate, the Lady Bird Deed is a simple and effective solution.
Additionally, Lady Bird Deeds provide capital gains tax benefits by allowing beneficiaries to inherit property at its current market value, reducing potential taxes if the property is later sold. Finally, these deeds offer flexibility and control, as homeowners can sell or change beneficiaries without needing their heirs' consent.
Why It's Important to Consult an Estate Planning Attorney
Though Lady Bird Deeds provide many benefits, they are not a one-size-fits-all solution. Mistakes in drafting or executing the deed could have serious consequences, such as unintentionally triggering probate or losing out on Medicaid benefits. That's why it's important to consult an experienced Florida estate planning attorney to determine if a Lady Bird Deed is right for your situation.
An attorney will review your unique circumstances — such as your assets, family dynamics, and long-term care plans — and recommend the best approach to protect your estate. Additionally, they will ensure that the deed is properly drafted, filed, and executed according to Florida law, minimizing the risk of costly errors.
Is a Lady Bird Deed Right for Your Property? Contact Us Today.
Estate planning is not something to leave until the last minute. The best time to consult an estate planning attorney about a Lady Bird Deed in Florida is as early as possible. By addressing your plans now, you can ensure your property will be transferred according to your wishes and that your loved ones are spared from unnecessary legal and financial burdens in the future.
Whether you're exploring Lady Bird Deeds, tax-saving strategies, or broader estate planning options, contact The Levy Firm, PLLC, based in Fort Lauderdale, for a free consultation. With over a decade of experience in South Florida, Attorney Geoff Levy offers knowledgeable estate planning guidance for your unique situation.
"Geoff handled my case, did a great job, very honest & caring, with great results."
- Donna G.