A Lady Bird deed benefits your family by making it easy to pass down your family home.
Estate planning is all about ensuring that your personal property and assets are transferred seamlessly to your chosen beneficiaries. Your estate planning attorney at The Millman Law Group knows the best methods for securing a simple and satisfying transfer. The Lady Bird deed is one of the most popular tools, especially here in Florida. This enhanced life estate deed benefits your family by letting the grantor of the deed retain some control of their property and maintain their Medicaid eligibility. This deed also helps the beneficiaries avoid probate and predatory creditors. If you want to learn more about these effective deeds, contact The Millman Law Group today to see how they fit into your plan.
You Control the Property Until It Passes On to Your Heirs
A traditional life estate deed lets the grantor use the property during their life; the grantor loses the option to change their mind. This means once the life estate deed is conveyed, the grantor cannot sell, mortgage, gift, or otherwise terminate the remainder beneficiaries’ interest without the grantee’s consent.
When you use a Lady Bird deed, the grantor retains complete control of the property during their lifetime. The grantor can sell, use, and mortgage the property without requiring consent from the beneficiaries. Additionally, the grantor of a Lady Bird deed does not have to pay gift taxes to transfer the remainder of the interest. They avoid this because the grantor retains the right to cancel that interest conveyed to the beneficiary.
Maintain Medicaid Eligibility
Generally, a traditional life estate deed starts a five-year waiting period for Medicaid benefits. A Lady Bird deed benefits your family because the execution of this deed is not considered a transfer of ownership. Using a Lady Bird deed with the grantor’s “intent to return” to the property after being moved to a nursing home can avoid this five-year penalty period because that gift can be revoked.
Avoid Probate
A Lady Bird deed benefits your family because it helps your heirs and beneficiaries avoid the lengthy and expensive probate process. Lady Bird deeds transfer the property directly to the beneficiary upon the owner’s death without going through probate first. This means your heir can immediately own this property and turn it into a home.
Protection for Your Heirs
When using an enhanced life estate deed, the property is safeguarded from the grantor’s creditors. This ensures that the intended beneficiaries will receive their inheritance securely. Even if the grantor incurs debts, creditors cannot force the sale of the property to close those debts. This protects the property from outside forces and ensures it is correctly passed down.
Work with Your Attorney to Avoid Mistakes
Mistakes in drafting or filing a Lady Bird deed can result in significant legal and financial consequences. For example, if the deed is not correctly acknowledged, it may not be legally valid, leading to property ownership disputes. If you want to make sure your deed is air-tight, partner with The Millman Law Group estate planning attorneys to avoid such errors.
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.