A Lady Bird Deed in FL is one tool used by a lawyer when the client’s estate includes real property. An experienced estate planning attorney uses many tools or strategies to create effective estate plans for clients. An estate plan, or life care plan, covers many aspects of a person’s life including what type of end-of-life treatment they want, who will make medical or financial decisions for them if necessary, and how to dispose of property after death. Schedule a Complimentary Discovery Call Table of Contents What is a Lady Bird Deed? 3 Benefits of a Lady Bird Deed in FL Preserving Medicaid Eligibility Preserving Assets for Your Family Owner Maintains Control of the Property Disadvantages of an Enhanced Life Estate Deed in FL Property Passing to Minor Beneficiaries. Property passing to multiple beneficiaries. How Does a Lady Bird Deed Work? Looking to Establish a Deed in Florida? What is a Lady Bird Deed? Also called an “enhanced life estate deed”, Lady Bird Deeds transfer real property to one or more beneficiaries after the owner of the property has passed away. This type of deed is used in a handful of states, including Florida, Michigan, and Texas. 3 Benefits of a Lady Bird Deed in FL Enhanced life estate deeds are used for several reasons, including: Preserving Medicaid Eligibility It can allow a Florida homestead to remain exempt from consideration during the Medicaid eligibility process. In addition, estates sometimes face claims for reimbursement from Medicaid. Because this deed allows property to pass to beneficiaries without going through probate, there’s little to no risk that it will be used to pay this type of claim. Preserving Assets for Your Family Since the property will not be sold to repay the former owner’s Medicaid benefits, it passes to the heirs. Property passes automatically without going through probate. Owner Maintains Control of the Property Unlike instruments like the life estate deed (as opposed to an enhanced life estate deed), the owner of the property retains control over the property until his or her death. Disadvantages of an Enhanced Life Estate Deed in FL Almost any legal process is not ‘one-size-fits-all.’ Some of the drawbacks to using an enhanced life estate deed may include: Property Passing to Minor Beneficiaries. If a minor is named as beneficiary, the minor may need a guardian to manage the property until attaining adulthood. Another option is to name a trust as beneficiary of the Lady Bird Deed and name the minor as the beneficiary of the trust. Property passing to multiple beneficiaries. One alternative option is to form a trust, name the trust as beneficiary of the enhanced life estate deed, and name multiple beneficiaries in the trust. This is just one aspect of the Lady Bird deed that you may discuss with your lawyer. How Does a Lady Bird Deed Work? Florida is one of the states that allows Lady Bird Deeds. Under the Lady Bird deed, an individual acquires an advanced “life estate” stake in real property while designating the “remainder” interest to another party upon their eventual passing. The holder of the “life estate” maintains exclusive rights over the property throughout their lifetime. This unique arrangement permits them to sell the property, utilize it, or make decisions regarding the property, free from the constraints of approval from the remainder beneficiaries. Interestingly, the remainder beneficiaries possess no inherent rights or authority concerning the property. While the life estate holder is alive, the beneficiaries hold no sway over property transactions. If the Lady Bird deed stays valid and the person who owns the property doesn’t sell it while they’re alive, the property will automatically go to someone else when they pass away. This way, there’s no need to go through probate. Avoiding probate is thus one of the major benefits of a ladybird deed and it makes this a powerful estate planning tool. Looking to Establish a Deed in Florida? Do you question the need for attorney guidance with so many online resources? Because laws and regulations are complex, and because every person has a lot at risk, more people than ever are seeking professional guidance from an experienced, knowledgeable source. That helps explain the rapid growth of our firm. Schedule a Complimentary Discovery Call Whether you happened upon this website by accident or are one of the many referrals we receive from a nearly 15-year collection of satisfied clients, our Palm City estate planning attorney can provide customized estate planning guidance for you from our office in Palm City or Stuart, FL. Click the button above to schedule a consultation or call us at (772) 266-5108 now!
