Is Creating A Lady Bird Deed The Right Choice For Your Tampa Home?

If you own a home in Tampa and want to pass it to your family without the cost and delay of probate, a Lady Bird deed may be one of the most practical tools available. It lets you retain control of your property during your lifetime while ensuring it transfers automatically to your beneficiaries when you pass away.

Our experienced Tampa estate planning lawyer explains more about how Lady Bird deeds work and factors to consider when determining whether it is an option for you.

What a Tampa Lady Bird Deed Does and How It Works

A Lady Bird Deed (otherwise known as an enhanced life estate deed) works by splitting your property into two interests: a life estate that you retain and a remainder interest that passes to your named beneficiaries at your death. What makes it different is the greater control you retain over the property.

The benefits of a properly drafted Lady Bird deed make it a popular choice for many Tampa homeowners:

• The property passes directly to your beneficiaries without any court involvement.
• The transfer isn’t complete until your passing, so you keep your homestead tax exemption and Save Our Homes cap.
• It doesn’t trigger documentary stamp taxes, keeping upfront costs low.
• It can help reduce capital gains taxes if your beneficiaries decide to sell.
• You retain the right to change beneficiaries at any time simply by executing and recording a new deed.

Florida does not have a statutory transfer-on-death deed, so a Lady Bird deed serves as the closest practical equivalent.

When a Lady Bird Deed Makes Sense (and When It Doesn’t)

A Lady Bird deed works particularly well for Tampa homeowners whose primary asset is their residence and who want a straightforward, cost-effective way to avoid probate. It also serves an important role in Medicaid planning. Transfers don’t count for Medicaid eligibility purposes and, as the property passes outside of probate, it may also avoid Florida’s Medicaid estate recovery process.

While this is appealing for Tampa homeowners concerned about future long-term care, a Lady Bird deed is not the right choice for every situation:

• Florida Statute 732.4015 restricts the transfer of homestead property when the owner has a surviving spouse or minor children.
• Under Florida Statute 689.111, a married homeowner must have their spouse join in the deed when conveying or encumbering homestead property.
• Homeowners with complex family situations, multiple properties, or significant creditors may benefit more from a revocable living trust.
• A poorly drafted Lady Bird deed can create title problems that surface only after the owner’s death.

For single homeowners or surviving spouses with relatively simple estates, a Lady Bird deed may be the best option for protecting the family home.

Schedule a Consultation With Our Experienced Tampa Estate Planning Lawyer

At Bubley & Bubley, P.A., our experienced Tampa estate planning lawyer helps homeowners put the tools in place to protect their property and provide for their families. To discuss Lady Bird deeds and other options, schedule a consultation today with our experienced Tampa estate planning lawyer.

Source:

floridarevenue.com/property/Documents/pt112.pdf