What is the Difference Between a Lady Bird Deed and Enhanced Life Estate Deed?
A Lady Bird Deed is also known as an Enhanced Life Estate Deed. This is a valuable estate planning tool in Florida that allows homeowners to transfer their property to a designated beneficiary while retaining control over the property during their lifetime. This type of deed can simplify the transfer of real estate upon death, bypassing probate and ensuring a smooth transition for loved ones. At our Pensacola law firm, we help clients understand the benefits of Lady Bird Deeds and how they can be used to protect assets, avoid legal complexities, and provide peace of mind for future generations.
Why is it Called a Lady Bird Deed?
A Lady Bird Deed is named after President Lyndon Johnson’s wife, Lady Bird Johnson. Lady Bird Johnson was a big advocate for the Enhanced Life Estate Deed, and was very important in popularizing the Enhanced Life Estate Deed. As a result, the Enhanced Life Estate Deed is also known by the name Lady Bird Deed.
How Does a Lady Bird Deed Work in Pensacola, Florida?
The owner of the home (known as the “Grantor”) gives their home to their heirs (known as the “Grantee”), BUT the owner of the home reserves the right to live in the home for the rest of their life (this is known as a “Life Estate”). The owner of the home further reserves the right to sell the home and keep all the proceeds from the sale of the home. Thus, the owner of the home is saying “I give my home to my heirs and I reserve the right to live there until I die; however, if I choose to sell the home, then I get to keep all the proceeds from the sale”.
What is the Benefit of a Lady Bird Deed?
A Lady Bird Deed also known as an Enhanced Life Estate Deed allows you to give your home in Florida to your heirs without losing Florida’s homestead protections and without making the heirs go through probate. Thus, you get the benefit of homestead protections and your heirs do not have to worry about going through probate in order to put the home in their name. Moreover, the value of the property is determined by the value on the date of death. Thus, the heirs receive the property at fair market value on the date of your death, so there should be NO Federal Capital Gains Tax.
Draft Lady Bird Deeds with Staples Law Group
Lady Bird Deeds/Enhanced Life Estates are covered under the Prepaid Legal Plan by Staples Law Group, P.A. By allowing you to maintain control of your home during your lifetime while avoiding probate, this deed can be an essential part of a well-rounded estate plan.
Contact Our Pensacola Lady Bird Deed Lawyer Today
If you’re considering how to best protect your assets and provide for your loved ones, our firm is here to guide you through the process, ensuring that your estate planning needs are fully addressed with clarity and confidence. Contact our Pensacola lady bird deed attorney today to learn more.