Lady Bird Deeds
Andrew David Easler, Esq.
Published
Updated
How Do Lady Bird Deeds Help With Estate Planning?
They are designed to let property pass to named beneficiaries without probate while the owner keeps control for life. They can also help with Medicaid planning and generally give a stepped-up tax basis.
Lady Bird deeds, also known as enhanced life estate deeds, give Florida property owners several planning options:
Probate planning: Lady Bird deeds are designed to let property pass directly to named beneficiaries at the owner's death without a probate case for that property. This can reduce delay and court costs.
Control: the owner keeps control during life and can sell, mortgage, change beneficiaries, or revoke the deed without anyone's consent.
Medicaid planning: Florida Medicaid estate recovery is pursued as a claim in the probate estate. Property that passes outside probate under a lady bird deed is generally outside that process, and signing the deed does not start the look-back period under current Florida rules. Rules can change, so each case should be reviewed.
Cost: a lady bird deed usually costs less than a revocable trust and is simpler to set up when real estate is the main asset. See trust vs. lady bird deed.
Taxes: signing the deed is generally not a completed gift. Because the property is still part of the owner's estate at death, beneficiaries generally receive a stepped-up basis, which can lower capital gains tax if they sell.
The deed itself is a public record once recorded. It should fit with the owner's will and any homestead restrictions, which an attorney can review during the consultation.
Disclaimer: This content is for informational purposes only and is not legal advice. No warranties on completeness, accuracy, or suitability. Always consult an attorney for personal guidance.
Related Lady Bird Deeds FAQs
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