Loune-Djenia Askew, Esq.
Dec 28, 2023
A Lady Bird deed is designated to allow property owners in Florida to transfer property to others automatically upon their death while maintaining use, control and ownership while alive. With a Lady Bird deed, a person takes an enhanced “life estate” interest in real property while transferring the “remainder” interest to someone else after they pass away.
A Lady Bird deed is designated to allow property owners in Florida to transfer property to others automatically upon their death while maintaining use, control and ownership while alive. With a Lady Bird deed, a person takes an enhanced “life estate” interest in real property while transferring the “remainder” interest to someone else after they pass away.
Benefits of Florida Lady Bird Deeds
Avoids probate upon death of the life estate holder in Florida since the property automatically passes to the named remainder beneficiaries outside the probate court.
Allows the life estate holder to maintain complete control over the property during their lifetime.
In Florida, an owner's homestead protection and exemption are very important. And since the transfer using a Florida Lady Bird deed does not take place until after the death of the life estate holder, these protections are not affected and remain in effect.
A transferor may avoid the assessment of immediate Florida Documentary Stamps,if they retain the life interest in the property.
The life estate interest held by the owner allows federal tax laws to deem the property owned by the life estate holder until their death.
Disadvantage of Lady Bird Deeds
Due to FL homestead laws, a Lady Bird deed cannot be used to create a remainder interest in third parties without the consent and involvement of the life interest holder’s spouse and minor children.
Title insurers are often skeptical to insure Lady Bird deeds in certain situations.
Lady Bird deeds may complicate matters when there are multiple remaindermen.
Lady Bird Deeds vs. Life Estate Deeds.
A traditional Life Estate deed prohibits the life estate holder from selling, transferring or encumbering the subject property without the explicit consent of the remainder beneficiaries. Lady Bird deeds, on the other hand, provide the enhanced benefit of allowing the life estate holder to act without the permission of the remainder beneficiaries.
For more information, contact our office at Askew & Associates, P.A. by calling 954-546-2699.
Disclaimer: this blog post is not intended to be legal advice. We highly recommend speaking to an attorney if you have any legal concerns.