Are you a Florida homeowner looking for ways to transfer real estate smoothly, maximize control, and preserve important exemptions? The Lady Bird Deed—also called an enhanced life estate deed—offers key advantages if you want flexibility, avoid probate, and protect your Medicaid eligibility.
Why Consider a Lady Bird Deed in Florida?
- Keep Total Control: Maintain your rights as owner—you can sell, refinance, change, or remove beneficiaries, all without anyone else’s permission.
- Probate Avoidance: On your death, the property passes straight to your chosen beneficiaries—no probate court, no delay.
- Preserve Homestead Benefits: Your homestead exemption stays in place, giving you ongoing property tax advantages.
- Medicaid Planning: Lady Bird Deeds generally don’t count as a completed gift for Medicaid purposes, so you don’t risk eligibility.
- Step-Up in Tax Basis: Your beneficiaries typically receive the property at a new, higher tax basis, likely reducing capital gains tax if they sell.
How Is a Lady Bird Deed Different from an Ordinary Life Estate?
- With a Lady Bird Deed, future heirs have no guaranteed (vested) interest while you’re alive—you make all crucial decisions.
- Traditional life estates restrict your powers; you’d need the heirs’ consent to sell or mortgage the home.
- There’s no legal duty to preserve or maintain the property for others under a Lady Bird Deed; your use and enjoyment come first.
What Are the Pitfalls?
- Devise Restrictions: Florida law can limit who inherits your homestead—if you have a spouse or minor children, consult a qualified attorney.
- Creditor Issues: Laws about whether creditors can reach a remainder beneficiary’s interest before you pass away are unsettled—be careful.
- Heir Complications: Multiple beneficiaries or family disputes can lead to probate or legal challenges if not planned for.
- Legal Complexity: These deeds aren’t “fill-in-the-blank” forms. Each situation is unique and legal guidance is necessary.
Need Clarity on Lady Bird Deeds?
If you want answers about Lady Bird Deeds, estate planning, or how to secure your home’s future, reach out for a tailored consultation. Get practical, Florida-specific solutions designed to fit your goals and protect your peace of mind call (813) 787-6121