Consider the differences between lady bird deeds and revocable trusts for estate planning.
When it comes to estate planning, homeowners have a variety of tools at their disposal to manage their property and assets efficiently. Lady Bird Deeds and Revocable Living Trusts are two popular options for transferring real estate to loved ones while avoiding probate. Each has its own set of advantages and potential drawbacks, depending on your unique situation. If you want to learn more about how these tools may benefit your family, speak with your estate planning attorney at The Millman Law Group today.
What Can Lady Bird Deeds Do?
A Lady Bird Deed, a form of enhanced life estate deed, is a legal tool that allows a person to create a life estate in real property and transfer that property to his or her heirs after their death. A Lady Bird Deed lets the property owner use and control the property during their lifetime and then automatically transfers the property upon the owner’s death. Significantly, this happens without the need for probate.
In Florida, a Lady Bird Deed can effectively transfer a homestead without needing to give up any of the homestead protections. Unlike a standard life estate deed, the beneficiaries have no interest in the property during the owner’s lifetime. The owner under a Lady Bird Deed can decide to return the property to themselves or make other changes – the deed is revocable.
How Do Lady Bird Deeds Compare to Revocable Living Trusts?
The advantages of Lady Bird Deeds include:
- Avoiding probate
- Keep your homestead protections
- Low cost
- Revocable so that owners can change their minds about the property
While Lady Bird Deeds have their advantages that may suit you, there are other estate planning tools, such as a Revocable Living Trust, which may help you as well.
Revocable Living Trusts
Trusts are flexible estate planning tools that can also help you avoid probate. However, you can add assets beyond your homestead to a Trust. A Revocable Living Trust may be an ideal estate planning tool if you have extensive assets or want to protect more than your family home.
Trusts can also help shield heirs from creditors. However, moving a homestead to a trust may mean losing homestead protections. Your estate planning lawyer at The Millman Law Group can help you determine which is better for your unique circumstances.
Which One Is Better For You?
Estate planning can make use of Lady Bird Deeds and Trusts where appropriate. Determining whether a Lady Bird Deed or Revocable Living Trust is helpful to you depends on numerous factors that your skilled attorney can help you navigate. If you want to make sure you have explored all potentially cost-saving and protective options for your estate, schedule a meeting with The Millman Law Group today.
Estate Planning Made Easy With Millman Law Group
Millman Law Group, PLLC is rare because it’s one of the only law firms that offer life planning in South Florida. From life care planning to the preparation of detailed estate plans, Millman Law Group has committed to serving Floridian elderly communities in Boca Raton, Palm Beach County, Ocean Ridge, Hillsboro Beach, and many other areas since 2018. Our dedicated team also specializes in special needs Trusts and catering to any age demographic because we know for certain it’s never too early to start preparing you and your family for your future. For the latest news in estate planning and elder care law, follow us on Facebook, Twitter, Linked In, and Pinterest. You can also contact us at 561-463-6480.