When purchasing a property in Florida, the decision regarding how to take title is more than just a technicality, it is often the foundation of a client’s long-term estate planning. Understanding how a Lady Bird Deed functions presents an opportunity for Buyers to conveniently arrange for the transfer of their real property to their chosen successor upon their passing, and is an excellent estate planning tool available to Florida Buyers.
What Is A Lady Bird Deed?
A Lady Bird Deed is an estate planning tool that allows a property owner to retain complete control over their property during their lifetime while naming beneficiaries who will automatically receive the property upon the owner’s death. All that is necessary in order to transfer the property is the recording of the decedent’s death certificate in the appropriate county.
The defining feature of a Lady Bird Deed is control. The owner retains the right to sell, mortgage, lease, or otherwise dispose of the property without the consent of the named beneficiaries. If the owner decides to change beneficiaries, sell the Property, or revoke the deed altogether, they can do so. The named beneficiaries have no present interest in the Property, nor do they have any control over the Property whatsoever.Florida is one of the few states that recognizes this enhanced form of life estate deed, and it has become an extremely popular estate planning tool.
Probate Avoidance: A Key Benefit
One of the most significant advantages is probate avoidance.
In Florida, probate can be time-consuming and, in some cases, expensive. Even straightforward estates require court involvement and administration. A properly drafted Lady Bird Deed allows real property to pass automatically at death, bypassing probate entirely in most scenarios.
The Bigger Picture
Real estate is often a client’s most valuable asset. Purchasing real estate is a uniquely convenient time for Buyers to consider how to take title at present and what they would like to happen to the Property in the future upon their passing. For buyers purchasing a primary residence, second home, or investment property, knowing that Florida law provides a relatively simple method to transfer real estate outside of probate upon their passing, while also maintaining full control, can offer convenience, costs savings, and peace of mind.
Lady Bird Deeds are not appropriate in every situation, and proper drafting is critical to ensure the intended benefits are achieved. Realtors should always encourage clients to seek individualized legal advice before implementing any estate planning strategy. Buyers and homeowners alike should consult with a trusted local real estate attorney to determine whether a Lady Bird Deed — or another planning tool — is appropriate for their specific circumstances
