If you want to protect your Florida home and avoid probate, a lady bird deed might fit your needs. Available only in Florida and four other states, lady bird deeds are a valuable estate planning tool.
What is a lady bird deed?
Lady bird deeds is another name for enhanced life estate deeds. The type of deed offers a way to transfer property to your beneficiaries while still maintaining control during your lifetime.
How lady bird deeds protect your property
A lady bird deed separates the ownership of your property into two parts: while you’re alive and after you pass away. It lets you keep full ownership rights of your property as long as you live.
But at the same time, the property is no longer part of your estate. Since it’s already under the name of your chosen beneficiary, it will automatically transfer upon your death. This helps your loved ones avoid the probate process entirely for that property.
Benefits of setting up a lady bird deed
Lady bird deeds offer several significant advantages, like:
- Probate bypass: Your beneficiaries receive the property automatically upon your death, saving them time and money on probate costs.
- Medicaid planning: The deed won’t affect your Medicaid eligibility if you transfer outside the lookback period. Additionally, the property remains protected from Medicaid estate recovery after your death.
- Retain control: Unlike traditional life estate deeds, you maintain the right to sell, mortgage, or change your mind about the property without asking for beneficiary approval.
- Total flexibility: You can also revoke or revise the lady bird deed, unlike a standard life estate deed.
- Tax advantages: The transfer doesn’t trigger gift tax consequences during your lifetime.
These benefits make lady bird deeds an especially valuable tool for Florida homeowners who want to protect their property while maintaining flexibility for the future.
Making the most of your lady bird deed
As a Florida resident, you have access to a powerful estate planning tool that many others don’t. You just need to structure it correctly. Working with an experienced estate planning attorney can help ensure your lady bird deed works properly and fits your overall estate plan.