A Florida Lady Bird deed, also known as an Enhanced Life Estate Deed, offers several advantages to property owners in Florida. In this blog post, we will explore the advantages of a Florida Lady Bird deed in detail.
What Is A Lady Bird Deed?
A Florida Lady Bird deed, also known as an Enhanced Life Estate Deed, offers distinct advantages to property owners in Florida. It provides a seamless method of transferring property to designated individuals upon the owner’s death while allowing the owner to maintain control, use, and ownership during their lifetime.
With a Lady Bird deed, the property owner holds an enhanced “life estate” interest in the real property, while transferring the “remainder” interest to someone else after their passing. This arrangement grants the owner ongoing control over the property throughout their lifetime, empowering them to sell, use, and manage the property as they please, without involving the remainder beneficiaries.
Advantages of Creating a Florida Lady Bird Deed
One of the primary advantages of a Lady Bird deed is its ability to help property owners avoid probate upon their death. In Florida, the property automatically passes to the named remainder beneficiaries outside of the probate court system. This means that the property can be transferred seamlessly and efficiently to the intended beneficiaries without the need for probate proceedings.
Maintain Control of Property During Lifetime
With a Lady Bird deed, the property owner retains complete control over the property during their lifetime. This means they can make decisions about the property, such as selling or using it, without seeking consent from the remainder beneficiaries. This flexibility is particularly valuable for property owners who wish to maintain control and use of their property while still planning for its eventual transfer to their chosen beneficiaries.
Keep Medicaid Benefits
Another significant advantage of a Lady Bird deed is its impact on Medicaid eligibility. Properties subject to Lady Bird deeds are disregarded when determining Medicaid eligibility. Additionally, these properties are excluded from the estate when calculating the amount that can be recovered by the state after the owner’s death. By utilizing a Lady Bird deed, property owners can strategically plan for Medicaid benefits while ensuring the transfer of their property to their intended beneficiaries.
How Do I Create A Florida Lady Bird Deed?
Despite their widespread recognition and usage in the state, Florida does not have a specific statute governing the use of Lady Bird deeds. This lack of specific guidance on the required language makes it crucial to ensure proper interpretation of the deed in the future when the original life estate tenant passes away, and interests are to be vested in the named remainder beneficiaries.
A reliable indicator of the validity of a Lady Bird deed is its acceptance and insurance by Florida title companies. This emphasizes the importance of not attempting such deeds without the expertise of a qualified and trained professional. Novice drafters should refrain from creating Lady Bird deeds on their own to avoid potential complications. Seeking the assistance of a professional will help ensure that your objectives are met, and your assets are adequately protected.
Talk to an Experienced Estate Planning Attorney
If you are considering creating a Florida Lady Bird deed or need assistance with any estate planning matters, it is highly recommended to consult an experienced estate planning attorney. Casal & Moreno is a reputable law firm serving the Coral Gables area and surrounding suburbs, including Coconut Grove, Miami, Pinecrest, South Miami, Doral, and Brickell. Contact us at 305-476-508 for expert advice and guidance in your estate planning needs.