Lady Bird Deeds / Enhanced Life Estate Deeds
An enhanced life estate deed, also known as a lady bird deed, allows real property to pass automatically from the owner known as the Grantor upon death to one or more designated beneficiaries known as Remainderman without the need for probate.
Upon death of the Grantor, the Remainderman simply files the Grantor’s death certificate with the County the property is located in, serving as proof of death, and the property then passes directly to the Remainderman without the need for probate. An enhanced life estate deed can be a great, easy to use tool at the disposal of Florida estate planning attorneys.
Advantages of an Enhanced Life Estate Deed / Lady Bird Deed
While a traditional life estate deed allows the Grantor to use the property during their life, the grantor may not change their mind. Once a traditional life estate is created, the Grantor may not sell, mortgage, convey, gift, or otherwise terminate the interest of the Remainderman without their consent.
A major benefit of using an enhanced life estate deed or lady bird deed rather than a traditional life estate deed is the retention of Grantor’s ability to sell, mortgage, convey, gift, or terminate the interest of the Remainderman without their consent.
Other benefits of using an enhanced life estate deed or lady bird deed include:
- An enhanced life estate deed or lady bird deed avoids probate as previously mentioned.
- An enhanced life estate deed or lady bird deed allows the Grantor to maintain their homestead for property tax purposes.
- There are no tax consequences to an enhanced life estate deed or lady bird deed as there is no completed gift for estate tax purposes. Upon the Grantor’s death, the property will be distributed to the Remainderman with a step-up in basis, meaning they will now be able to sell the property tax-free.
- The execution of enhanced life estate deed or lady bird deed is not considered a transfer of ownership (i.e., a gift) for purposes of applying for Florida Medicaid benefits.
- An enhanced life estate deed or lady bird deed is not subject to documentary stamps.
Know Your Rights Before You Act
Stephen K. Hachey, an experienced estate planning attorney, can help you determine your options and advise you on the best course of action based on your unique situation. And with offices spread out across Tampa Bay, he’s available and accessible to begin representing you. We proudly serve Tampa, St Petersburg, Clearwater, Wesley Chapel, Brandon, Riverview, South Tampa and everywhere in between.
Call 813-549-0096 TODAY for a FREE, No-Obligation Consultation
Phone & Fax
Phone: (813) 549-0096
Fax: (813) 377-4968
The Law Offices of Stephen K. Hachey, P.A.
15619 Premiere Drive Ste 104A
Tampa, FL 33624
(By Appointment Only)