If you live in the state of Florida, you need to know about a lady bird deed. This is a relatively new type of deed which is why most people do not actually know how it works. It is recommended that you know what this deed is as well as how it works and what it can do for you.
What Is A Lady Bird Deed?
A lady bird deed is a new type of deed in the state of Florida. The deed allows a property to be passed automatically to a recipient upon the death of the deed owner. The primary benefit of a lady bird deed, when compared to a traditional deed, is the fact that there will be no need for probate. It is important to note that Florida is only one of a handful of states that actually recognizes lady bird deed. Some of the other states will include Texas.
How A Lady Bird Deed Works
If you decide to use a lady bird deed, you need to understand how it works. To use this deed, you will have to sign a deed that transfers your property to a group of people or single person known as the remainder beneficiaries upon your death. However, the deed will state that you have the right to sell, use and otherwise handle the property while you are still alive.
If you have a lady bird deed and choose to sell the property or re-mortgage during your lifetime, you can do so without consulting the remainder beneficiaries. This is the primary difference between a lady bird deed and a life estate deed which is often used as well. If you do this, you will need to update your other legal documents to reflect the change.
After passing, your remainder beneficiaries will need to file your death certificate with the land records office. This needs to be done as proof that the lady bird deed is to be transferred to the beneficiaries. When this transfer is done, there will be no need for probate which can save your family a lot of heartache.
The Advantages Of The Lady Bird Deed
A lady bird deed allows you to retain control of your property while you are still alive and using it. Other deeds may require you to consult with the remainder beneficiaries before you sell or re-mortgage the property. You will also avoid triggering any Federal gift tax on the transfer in your lifetime as well as avoiding probate of the property after your death.