By T.R Smith, Esq
When it comes to estate planning in Florida, the Lady Bird Deed, or Enhanced Life Estate Deed, is a powerful tool that many homeowners may not be aware of. Named after former First Lady “Lady Bird” Johnson, this type of deed allows property owners to transfer a remainder interest in real estate to their heirs while retaining control over the property during their lifetime. The beneficiaries’ interest in the property does not vest, or go into effect, until the grantor (the property owner) passes away, at which point the property automatically transfers to the named beneficiaries without the need for probate. Therefore, during their lifetime the grantor retains the right to: (i) use and live in the property; (ii) sell the property without the consent of the beneficiaries; (iii) collect all proceeds generated by the property; and (iv) change or modify the beneficiaries designated to receive the property upon their passing.
One of the most significant benefits of a Lady Bird Deed is that the property automatically transfers to the beneficiaries upon the grantor’s death without going through probate. Avoiding the probate process for the grantor’s real estate will save the grantor’s family time, money, and emotional stress. Another advantage of a Lady Bird Deed is that the grantor retains full control over the property during their lifetime. It is important to note that if a standard Life Estate Deed is used instead of a Lady Bird Deed, the grantor loses some control over the property and consent of the beneficiaries would be required to sell the property or make changes to the ownership interests. Therefore, using the correct form of Life Estate Deed is vital to effectuate the grantor’s estate plan.
Deciding whether a Lady Bird Deed is the best option for your estate planning needs
depends on your specific circumstances. Contact your trusted real estate attorney for
additional information.
