Death is not a topic that anyone particularly enjoys thinking about. However, when it comes to a person’s home, this topic is necessary when considering the Florida Lady Bird Deed. This deed is a legal form that allows you to transfer ownership of your home to your beneficiary upon the death of the homeowner, without probate and at relatively low cost.
The Law Offices of Daryl L. Jones, P.A, is a Florida real estate law firm dedicated to ensuring our clients are knowledgeable about all real estate laws and transactions. There are several key factors that are important for you to know about the Florida Lady Bird Deed.
What Must a Lady Bird Deed Include in Florida?
The Florida Lady Bird Deed (also referred to as an enhanced life estate deed) is fully legal in the state. It allows the property owner(s) to have full use and control of the property during their lifetime, and the property will automatically transfer to their beneficiary upon their death(s). In order for the deed to be valid in Florida, it must include:
- Grantor: The current owner(s) of the property
- Enhanced Life Estate Deed: Allows the property owner(s) to have control over the property during their lifetime
- Remainder Beneficiary: This is the person or persons who will inherit the property after the owner(s) passes away
- Legal Description: This is a formal description used to identify the property
- Homestead Provisions: For those who own a homestead property, this is a paragraph that allows the property owner(s) to keep the homestead exemption
If you have questions about what should be included in a Lady Bird Deed for your home, it is essential that you speak with a trusted real estate attorney in Florida.
What Are the Advantages and Disadvantages of the Lady Bird Deed?
If you are considering a Lady Bird Deed for your Florida home, it is crucial that you understand its advantages and disadvantages.
Advantages of the Lady Bird Deed
Compared to a trust, the Lady Bird Deed has many advantages that may make this a more attractive option for homeowners. These advantages include:
- Avoids probate
- Low cost
- Simple process
- Owner(s) maintain complete control over the property. At any time after obtaining a Lady Bird Deed, they can remove the Lady Bird Deed, obtain a mortgage, and/or change the designated beneficiaries.
While there are many advantages when it comes to the Florida Lady Bird Deed, it is important that you also understand the disadvantages you may face.
Disadvantages of the Lady Bird Deed
It is crucial that you understand the full picture when entering into any deal concerning your property. That includes understanding the disadvantages as well as the advantages. The disadvantages of the Lady Bird Deed include:
- Lack of asset protection
- Constitutional restrictions
- Changes to the estate plan
- Unexpected deaths of beneficiaries
While there are some disadvantages, the lady bird deed is still a popular and simple option for property owners to help ensure that their home is passed on to their beneficiaries after they have passed away. To better understand the Florida Lady Bird Deed, speak with a knowledgeable real estate lawyer.
Contact a Florida Real Estate Lawyer for Help Today
Deciding what will happen with your property after you have passed may not be something you want to think about right now. However, it is important that you take a little time to decide who will be your beneficiaries, and ensure they will have the ability to take over your property.
The Law Offices of Daryl L. Jones, P.A, has over 30 years of experience helping clients with the Florida Lady Bird Deed and any other needs they may have concerning real estate laws and transactions. To schedule a free initial strategy session, contact us here or call 305-969-3602.