In Florida, a Lady Bird deed is an estate planning tool used which can be used to avoid the probate of real property. The property is immediately transferred to the beneficial owner, a.k.a. remainderman, upon the death of the grantor/life tenant.
An “enhanced” life estate deed, a.k.a. Lady Bird Deed, allows the grantor/life tenant to retain control over the property and take any action regarding the property without the joinder and consent of the remainderman. This can include sale of the property, renting the property for profit, and/or taking out a mortgage on the property. Additionally, the grantor/life tenant is not liable to the remainderman for waste or deterioration of the property.
A Lady Bird deed is NOT a standard life estate deed. A standard life estate comes with restrictions on the ability to sell, rent, and/or mortgage the property, and the grantor can become liable to the remainderman if the property loses value.
If you own real property, give us a call for to discuss your options. We will help you achieve your estate planning goals.