What Is A Florida Lady Bird Deed?

A Florida Lady Bird deed, also known as an enhanced life estate deed, is a legal tool used in estate planning. It allows property owners to transfer ownership to their beneficiaries while retaining the right to use and control the property during their lifetime.

The name "Lady Bird Deed" isn't based on a specific person or historical figure. It comes from a legal case in the 1980s where President Lyndon B. Johnson used a similar deed to transfer property to his wife, Lady Bird Johnson.

With a Florida Lady Bird deed, the grantor can still sell, mortgage, or otherwise transfer the property without the beneficiaries' approval. Upon the grantor's death, the property automatically passes to the named heirs, bypassing the probate process.

One of the main benefits of using a Florida Lady Bird deed is that it can help avoid the often lengthy and costly probate process. These deeds are also more flexible than many other estate planning tools, and the grantor can modify or revoke the deed as needed. Other benefits include, but are not limited to:

• Avoids probate: Property automatically transfers to the beneficiaries upon the grantor's death, bypassing the often lengthy and costly probate process.

• Flexibility: The grantor retains control over the property during their lifetime, including the right to sell, mortgage, or revoke the deed without the consent of the beneficiaries.

• No gift tax implications: The transfer of property through a Lady Bird deed is not considered a taxable gift, as the grantor retains the right to use and control the property during their lifetime.

• Medicaid eligibility: A Lady Bird deed can help preserve Medicaid eligibility, as the property is not considered a countable asset for Medicaid purposes.

• Stepped-up basis: Upon the grantor's death, the beneficiaries receive a stepped-up basis on the property, which can reduce their capital gains and tax liability if they choose to sell the property.

It's worth noting that using a Florida Lady Bird deed may have legal and tax implications. It's always a good idea to consult a qualified attorney to ensure that the deed follows all applicable laws and regulations and meets your estate planning needs.