How A Lady Bird Deed May Help Avoid Probate In Clearwater

A Lady Bird Deed is a powerful estate planning tool. It is a type of deed that allows you to put a loved one’s name on your home or other property, yet it only goes into effect in the event of your death, allowing you to retain control until then. Our Clearwater estate planning attorney explains more about Lady Bird deeds and factors to consider in determining whether it is right for you.
How Does A Lady Bird Deed Work?
Legend has it the Lady Bird deed is named after “Lady Bird” Johnson, the former First Lady. Allegedly her husband, former U.S. President Lyndon B. Johnson, used one to transfer property to her name, ensuring she was provided for in the event of his death. However, according to the Lyndon B. Johnson Library, this is a myth. An alternate version is the term was coined by a Florida attorney in 1982, ten years after President Johnson’s death.
A Lady Bird deed, formally known as an enhanced life estate, is not available in all 50 states. Aside from Florida, only four others offer it. Though it may not be widely available, according to a July 2024 Smart Asset report, it offers the following potential benefits:
- Ensures property is seamlessly passed to loved ones upon your death;
- Avoids having potentially time-consuming and costly probate court proceedings;
- Allows you to retain rights and control of the property over the course of your life;
- Can help in qualifying for Medical benefits, which offset high long-term care costs;
- Provides homestead benefits and potential tax exemptions.
The Role Of Lady Bird Deeds In Estate Planning
In the event of your death, your estate passes through probate. Your will acts as a guide through Pinellas County Probate Court proceedings, but it can still be a complex and confusing process. To begin with, all property must be collected and accounted for, which may prevent an intended beneficiary from taking immediate possession. Ways a Lady Bird deed can help in this situation:
- It allows the property to bypass probate;
- It acts in much the same way as designating bank accounts as ‘payable on death,’ allowing for a seamless transfer.
Discuss whether this type of deed is your best choice with our Clearwater estate planning attorney. Depending on the specific circumstances, we can advise you on whether a trust and other estate planning tools may help complement a Lady Bird deed or be a better choice to replace it.
Schedule A Consultation Today With Our Clearwater Estate Planning Attorney
William Raumbaum has protected the rights of clients for over 40 years and is certified in elder law by both the Florida Bar and the National Elder Law Foundation, something only a select few can claim. He can advise you on your options in creating a Lady Bird deed and other estate planning documents to protect yourself and provide for those you love. Call or contact our office online to schedule a consultation with our Clearwater estate planning attorney today.
Source:
smartasset.com/estate-planning/lady-bird-deed-in-florida