Attorney
Yes, you can still sell your home after creating a Lady Bird Deed in Florida. This unique estate planning tool, formally known as an enhanced life estate deed, allows you to retain full control of your property during your lifetime, including the right to sell, lease, or mortgage it. For Pensacola homeowners, a Lady Bird Deed offers a flexible way to avoid probate while preserving ownership rights. Below, our Pensacola estate planning attorneys explain how it works, what to watch out for, and why proper legal drafting is essential.
What Is a Lady Bird Deed and How Does It Work?
A Lady Bird Deed, or enhanced life estate deed, is a legal instrument that allows a homeowner to name beneficiaries who will automatically inherit the property upon the homeowner’s death. A Lady Bird Deed allows inheritance without the need for probate. What sets it apart from a traditional life estate deed is that it allows the grantor (the homeowner) to retain full control of the property during their lifetime.
This means the grantor can sell, mortgage, lease, or even change the designated beneficiaries at any time without needing anyone else’s consent. In contrast, a traditional life estate deed typically restricts these rights once executed. Because of this flexibility, Lady Bird Deeds have become increasingly popular in Florida, including in Pensacola, as a way to simplify estate planning and avoid probate delays.
Can You Sell Your Home After Executing a Lady Bird Deed?
Yes, you can sell your home after executing a Lady Bird Deed in Florida. The deed explicitly reserves your right to manage the property as you see fit, including selling it. The named beneficiaries have no legal interest in the property while you are alive, so their consent is not required for any transactions.
If you sell the home, the proceeds from the sale become part of your personal assets. This can have implications for Medicaid eligibility or other asset-based benefits. For example, if the funds are not spent down or otherwise protected, they may count against Medicaid asset limits. It’s important to plan accordingly if you are considering long-term care or other needs that depend on asset thresholds.
To ensure your rights are fully preserved, the Lady Bird Deed must be drafted with precision. Ambiguous or incorrect language can lead to legal disputes or even trigger probate, defeating the purpose of the deed. That’s why working with an experienced estate planning attorney is essential.
Why Proper Drafting and Legal Guidance Are Crucial
A Lady Bird Deed is only as effective as its language. Poorly drafted deeds can create confusion, lead to probate, or even invalidate the intended transfer. That’s why it’s critical to work with a qualified estate planning attorney who understands Florida law.
Pensacola homeowners benefit from legal professionals who are familiar with the state’s specific requirements for enhanced life estate deeds. A local attorney can ensure the deed clearly reserves your rights, complies with Florida statutes, and is properly recorded. They can also advise you on how to document any property transactions after the deed is executed to avoid future complications.
Is a Lady Bird Deed Right for Your Estate Plan?
A Lady Bird Deed can be an excellent option for Florida homeowners who want to avoid probate while maintaining full control of their property. It’s particularly useful for those who want to ensure a smooth transfer to loved ones without giving up the ability to sell or refinance.
However, it’s not a universal solution. You’ll need to consider how it fits into your broader estate plan, including Medicaid planning, creditor exposure, and family dynamics. A consultation with an experienced estate planning attorney can help you determine whether this tool aligns with your long-term goals.
Protect Your Property and Your Future with a Lady Bird Deed in Pensacola
A Lady Bird Deed can be a powerful estate planning strategy for Florida homeowners, but only when it’s properly drafted and executed. If you’re considering creating one, or already have one and are thinking about selling your home, consult with a knowledgeable estate planning attorney. At Staples Law in Pensacola, we help clients protect their assets and plan for the future with clarity and confidence. Contact us today to schedule a consultation.