If you own Florida real estate and you’re trying to build an estate plan, you might have received advice to look into a Lady Bird Deed. A Lady Bird Deed is one legal tool that might fit your situation when you’re trying to figure out how to pass down your assets to the next generation.
This type of deed is especially important if you want to maintain current control of your property while you’re still alive. And, it’s commonly used to avoid probate.
William C. Roof is here to help you navigate whether a Lady Bird Deed might be right for your situation. Call us today to set up a consultation.
What is a Lady Bird Deed?
A Lady Bird deed is a legal document that transfers ownership of your property to a named person (beneficiary) upon your death. This structure allows the property to avoid Probate, the sometimes long and public legal process of having your estate distributed after you pass away.
A Lady Bird Deed allows you to maintain control of the property until you pass, because the title does not vest in the beneficiary until you pass. This means you can decide to change the named beneficiary. Or, you can even decide to sell the property instead. You don’t have to consult your named beneficiary, because he or she does not yet have title.
For these reasons, this deed is also known as an “Enhanced Life Estate Deed.” This means that the property owner can sell, mortgage, or gift the property without seeking consent from the designated beneficiaries.
Are Lady Bird Deeds Allowed in Florida?
Yes. Florida is one of the few states that recognizes Lady Bird Deeds to transfer property. Using a Lady Bird Deed means that you become a “life tenant” on your property. You live there, but you’ve already executed a document transferring the property to a named person upon your death. The Lady Bird Deed gives you more power over the property than a basic “life estate.”
Requirements for a Lady Bird Deed in Florida
There are a few basic building blocks that make a functioning Lady Bird deed in Florida:
- Competent Grantor
This means you, as the “grantor” (or person transferring the property) have to be of sound mind. If you are not mentally competent and your family is pressuring you to do it, you probably wouldn’t be considered a competent grantor. If you have questions about the competence of a loved one, seek guidance from a Lady Bird Deed Attorney. - Property Ownership
This might seem obvious: You, as the grantor, have to actually own the property you want to transfer to the grantee (the person you are transferring to). And, you have to have real proof that you own the property you are transferring to the grantee. Additionally, the property should be free from any kind of dispute, liens, or encumbrances. If found otherwise, then it should be addressed immediately before executing the deed, or else it may directly impact the validity of the deed.
- Beneficiary Designation
To execute a Lady Bird deed, you have to name the person you want to transfer the property to (the beneficiary). In Florida, it is crucial to clearly identify and specify the beneficiary’s name, stating the relationship between the grantor and the beneficiary in the deed. The named beneficiary in the deed becomes the owner of the property after the grantor’s death without going through the probate process. If you want to leave a property to multiple people, you can list each of the people and their percentage ownership of the property. Whether they own as tenants in common or as joint tenants with a right of survivorship are issues you should discuss with your Lady Deed Attorney. - Estate’s Legal Description
You have to give an accurate legal description of the property being transferred in the deed. This legal description includes the property’s address, size, shape, relevant boundaries, and any physical markers that define the property or restrictions. It serves the purpose of identifying the property which is associated with the deed. Be sure to avoid any ambiguity.