A Lady Bird Deed, also known as an Enhanced Life Estate Deed, is a popular estate planning tool in Florida. It allows property owners to retain control of their property during their lifetime while ensuring a seamless transfer to beneficiaries upon their passing. This type of deed is widely used to avoid probate and provide flexibility in estate management. Below, we discuss the key benefits and the process of obtaining a Lady Bird Deed in Florida.

What is a Lady Bird Deed?

A Lady Bird Deed is a legal document that grants the owner (grantor) complete control over their property during their lifetime. Unlike a traditional life estate deed, the grantor can sell, mortgage, or change beneficiaries without their consent. Upon the grantor’s death, the property automatically transfers to the named beneficiaries without going through probate.

Benefits of a Lady Bird Deed in Florida

1. Avoiding Probate

One of the biggest advantages of a Lady Bird Deed in the state of Florida is that it allows property to bypass probate. This means that the beneficiary receives the property immediately upon the grantor’s passing, saving time and legal costs.

2. Retaining Control Over the Property

Unlike a traditional life estate deed, a Lady Bird Deed allows the grantor to sell, refinance, or change beneficiaries without needing approval from anyone. This provides greater flexibility in estate planning.

3. Medicaid Planning Benefits

A Lady Bird Deed in Florida can be useful for Medicaid planning. Since the property does not go through probate, it is generally not considered a recoverable asset under Medicaid’s estate recovery rules. This can protect the property from Medicaid liens.

4. Tax Advantages

A Lady Bird Deed may offer tax benefits, such as maintaining the homestead exemption for property taxes and providing a step-up in basis for capital gains tax purposes upon the owner’s death.

5. Protection Against Creditors

Since the property is not part of the probate estate, creditors generally cannot claim it after the owner’s death. This provides additional asset protection for beneficiaries.

Process of Obtaining a Lady Bird Deed in Florida

Step 1: Consult an Attorney

Although a Lady Bird Deed in Florida is relatively simple, consulting an estate planning attorney ensures that the document is properly drafted and aligns with state laws.

Step 2: Drafting the Deed

The deed must include:

• The grantor (current owner)
• The grantee (beneficiary who will receive the property)
• A legal description of the property
• Language specifying that the grantor retains control and can revoke or modify the deed

Step 3: Signing and Notarization

The deed must be signed by the grantor in the presence of a notary and two witnesses, as required by Florida law.

Step 4: Recording the Deed

To be legally valid, the Lady Bird Deed must be recorded with the county clerk’s office in the jurisdiction where the property is located. This ensures public notice of the transfer.

Conclusion

A Lady Bird Deed in the state of Florida is a powerful estate planning tool that allows homeowners to maintain control over their property while ensuring a smooth transfer to beneficiaries. It provides numerous benefits, including probate avoidance, Medicaid protection, and tax advantages. If you are considering a Lady Bird Deed for your property, consulting with a legal expert can help ensure that it aligns with your estate planning goals.

By understanding the Lady Bird Deed in Florida, property owners can make informed decisions to protect their assets and streamline the inheritance process for their loved ones.