Pass Your Assets Forward With A Lady Bird Deed
A lady bird deed, also known as an enhanced life estate deed, is a unique estate planning tool. It allows you to retain control of your property during your lifetime while designating a beneficiary to inherit it upon your death. This deed originated in Florida and has gained popularity for its flexibility and benefits in estate planning.
If you are interested in incorporating a lady bird deed into your estate plan, I can help you. I am Russell G. Marlowe. I bring 37 years of experience to estate planning. I am honored to serve the people of New Port Richey, Pasco County and the surrounding community with estate law concerns. I prioritize efficient solutions that are cost-effective. I offer virtual appointments and flexible scheduling to accommodate your needs.
Benefits Of Lady Bird Deeds In Florida
Lady bird deeds offer several advantages over traditional trusts. Some of these benefits include:
- Avoids probate: Property transfers directly to the beneficiary, bypassing probate.
- Maintains control: You retain the right to sell, mortgage or change beneficiaries.
- Medicaid planning advantages: Helps preserve Medicaid eligibility.
- Property tax implications: May offer favorable tax treatment.
- Cost-efficacy: Provides similar benefits without the complexity or cost of a trust.
If lady bird deeds are a tool that intrigues you, I can sit down with you to help you explore whether you could benefit from creating one.
How Lady Bird Deeds Work In Florida
Understanding how lady bird deeds function is key. Many people planning their futures are not familiar with lady bird deeds, as they are not widely known documents. With a lady bird trust, the grantor retains lifetime property rights and can revoke the deeds. You have the right of sale, mortgage and change of beneficiaries. Your remainder beneficiaries receive the property upon your death.
When considering a lady bird deed, compliance with state laws is essential for validity. You need to work with an estate planning attorney to ensure that you meet all requirements, including two witnesses, a property description, power-to-sell clauses and other details.
Lady Bird Deeds Vs. Other Estate Planning Tools
Comparing lady bird deeds with other options helps determine the best fit for you. This is how they measure up to other estate planning documents:
- Traditional life estate deeds: Lady bird deeds offer more control.
- Differences from regular quitclaim deeds: By comparison, lady bird deeds offer enhanced rights and protections.
- Living trusts: Lady bird deeds provide similar benefits without the complexity.
All told, lady bird deeds can complement other estate planning strategies. Using them in a cohesive estate plan ensures that you and your beneficiaries have adequate legal protection.
Common Uses For Lady Bird Deeds
Lady bird deeds are versatile and can address various needs. For instance, they can protect property for your adult children. They ensure that your children inherit without probate. If you have a blended family, these deeds work well to accommodate complex family dynamics. For single people planning their estates, they simplify the transfer of property. Finally, for widows and widowers, lady bird deeds offer security and control for the surviving spouses.
Advantages And Limitations
Before creating a legally binding document, you should always weigh the pros and cons. What follows are some of their pros and cons:
- Pros: Medicaid eligibility preservation, avoiding probate, maintaining control.
- Cons: Difficult to get title insurance considerations; may be subject to gift and estate taxes.
I have seen firsthand the many ways that lady bird deeds can give you and your loved ones an advantage in asset protection and tax minimization. I can also address any concerns that you have about them.
Frequently Asked Questions
Here are answers to common concerns that some of my prospective clients bring up about lady bird deeds.
Can I Sell Or Mortgage My Property With A Lady Bird Deed?
Yes, you retain these rights.
How Does This Affect My Homestead Rights?
It does not impact your homestead rights.
What Happens if I Want to Change Beneficiaries?
You can change beneficiaries at any time.
Does This Affect Property Taxes?
Typically, it does not affect your taxes.
Steps To Create A Lady Bird Deed
Creating a lady bird deed involves specific steps:
- Regulation compliance: Ensure compliance with Florida laws.
- Required documentation: Gather necessary documents for drafting.
- Recording process: Properly record the deed with local authorities.
- Pay the costs: Understand the costs involved in drafting and recording.
Because I have a particular focus on lady bird deeds, I have gone through these steps hundreds of times. I can advise you of everything that is to come and how best to prepare.
Common Mistakes To Avoid
Like all legal documents, there are a variety of mistakes that can arise when incorrectly making a lady bird deed. Avoid these pitfalls to ensure effectiveness:
- DIY deeds that lead to legal issues
- Improperly drafted deeds
- Legally noncompliant deeds
- Unrecorded deeds that go unrecognized
- Beneficiary designation errors
You do not have to worry about these errors when you have an experienced estate planning lawyer such as me on your team.
When To Consider Professional Help
It is never wise to tackle your estate plan on your own. Professional guidance is even more crucial in certain situations. For instance, complex family situations in which you need to address all family members’ interests. Or if you have multiple real properties to pass along or sell. If you need to protect your eligibility for Medicaid benefits, you should consult an attorney who can help you plan. To minimize potential tax liabilities, you should have a lawyer as well.
Ask An Estate Planning Attorney About Lady Bird Deeds
If you are considering a lady bird deed, I am here to assist you. As your lawyer, I will ensure your estate plan meets your needs and protects your interests. Contact me at 727-490-8877 or use my online contact form to schedule an initial consultation.