A Lady Bird Deed, a nickname for an Enhanced Life Estate Deed, is an excellent way to pass your real estate to your children, or other beneficiaries, and avoid the cost and delay of the Probate process. When you execute this type of deed you are not making a life-time transfer of a part or all of your property, which is what happens when you put someone else’s name on the deed. The property remains yours until you pass away, and then passes automatically to your designated beneficiaries. Some states call this a Transfer on Death deed.
There are many benefits to using a Lady Bird Deed in your Estate Plan. It not only avoids Probate, but avoids or eliminates any potential capital gains for your beneficiaries. Also, unlike other types of Life Estate transfers, the real estate remains in your name until you die so you can sell, mortgage or rent the property anytime without the consent of the named beneficiaries. If the real estate is your homestead in Florida, you will also retain the right of creditor protection for your home. Thus, creditors of your named beneficiaries, including divorcing spouses, will not be able to make a claim on your home.
The Law Office of Debra G. Simms will help you achieve your Estate Planning goals.