A Lady Bird deed is a legal instrument used in estate planning. It is also known as an Enhanced Life Estate Deed. People use it to transfer property while retaining certain rights during the grantor’s lifetime.
This unique type of deed has gained popularity among Florida residents seeking to protect their assets and streamline the transfer of real estate.
What a Lady Bird deed does
A Lady Bird deed functions like a traditional life estate deed but includes additional provisions that offer flexibility and control to the grantor. With a Lady Bird deed, the grantor retains the right to revoke or modify the deed during their lifetime without the consent of the remainder beneficiaries. This distinguishes it from other types of deeds, providing the grantor with greater autonomy over his or her property while preserving eligibility for Medicaid and other benefits.
Differences between regular Life Estate Deed and Lady Bird Deed
In normal life estate deeds, the Grantee actually actually owns an interest in the property at the time the deed is signed and recorded. This means that if a creditor records a judgment against the Grantee in the public records in that county, that judgment is a lien on the Grantor’s home. Not a desirable result!. However, with a Lady Bird Deed, because the Grantor retains the right to change their mind, transfer, sell, lease, or mortgage without the Grantee’s permission or signature, the Grantee owns nothing until the Grantor dies. This is why a Lady Bird Deed is not considered an actual transfer by Medicaid. Nothing actually changes hands until the Grantor dies.
Why people might need one
Florida residents may find Lady Bird deeds beneficial due to the state’s unique real estate laws and probate process. With a Lady Bird deed, individuals can transfer property to beneficiaries without the need for probate, which can save time and reduce administrative costs. The grantor also retains control over the property throughout his or her lifetime. This allows the grantor to maintain his or her residence or make changes without interference. Lady Bird Deeds
Lady Bird deeds offer an innovative solution for those seeking to protect their assets and simplify the transfer of real estate. These deeds provide peace of mind and financial security for both grantors and heirs, making them a valuable consideration during estate planning.
