Lady Bird Deed in Florida: 19 Surprising Facts You Need to Know

What is a Lady Bird Deed?

A Lady Bird Deed is a type of estate planning tool that allows a person to retain ownership of a property while transferring the rights to the property to another person, typically a family member. The deed is named after former First Lady Lady Bird Johnson, who was an advocate for conservation and environmental protection.

How Does a Lady Bird Deed Work?

A Lady Bird Deed is created when a property owner signs a deed that transfers the title of the property to another person, but reserves a life estate for themselves. This means that the property owner retains the right to live on the property and use it as their primary residence for the rest of their life. After the property owner dies, the property automatically passes to the person named in the deed.

19 Surprising Facts About Lady Bird Deeds in Florida

1. Lady Bird Deeds are not available in all states. Florida is one of only a few states that allow Lady Bird Deeds.
2. Lady Bird Deeds can be used to avoid probate. Probate is the legal process of administering the estate of a deceased person. Lady Bird Deeds can help to avoid probate by transferring the title of the property to the new owner before the property owner dies.
3. Lady Bird Deeds can be used to protect assets from creditors. If a property owner has creditors, a Lady Bird Deed can help to protect the property from being seized by the creditors.
4. Lady Bird Deeds can be used to reduce estate taxes. Estate taxes are taxes that are imposed on the value of a person's estate when they die. Lady Bird Deeds can help to reduce estate taxes by reducing the value of the property that is subject to estate taxes.
5. Lady Bird Deeds can be used to qualify for Medicaid. Medicaid is a government program that provides health insurance to low-income individuals. Lady Bird Deeds can help to qualify for Medicaid by reducing the value of the property that is counted as an asset.
6. Lady Bird Deeds can be used to create a tenancy by the entirety. A tenancy by the entirety is a type of property ownership that is held by two people, typically a husband and wife. Lady Bird Deeds can be used to create a tenancy by the entirety by transferring the title of the property to both spouses.
7. Lady Bird Deeds can be used to create a trust. A trust is a legal arrangement that allows a person to manage their assets during their lifetime and after their death. Lady Bird Deeds can be used to create a trust by transferring the title of the property to the trust.
8. Lady Bird Deeds can be used to make a gift. A gift is a transfer of property from one person to another without compensation. Lady Bird Deeds can be used to make a gift by transferring the title of the property to the recipient of the gift.
9. Lady Bird Deeds can be used to create a life estate. A life estate is a type of property ownership that gives a person the right to use and possess property for the rest of their life. Lady Bird Deeds can be used to create a life estate by transferring the title of the property to the life tenant.
10. Lady Bird Deeds can be used to create a remainder interest. A remainder interest is a type of property ownership that gives a person the right to own property after the death of the life tenant. Lady Bird Deeds can be used to create a remainder interest by transferring the title of the property to the remainderman.
11. Lady Bird Deeds can be used to create a fee simple interest. A fee simple interest is the most complete form of property ownership. Lady Bird Deeds can be used to create a fee simple interest by transferring the title of the property to the fee simple owner.
12. Lady Bird Deeds can be used to create a leasehold interest. A leasehold interest is a type of property ownership that gives a person the right to use and possess property for a specified period of time. Lady Bird Deeds can be used to create a leasehold interest by transferring the title of the property to the lessee.
13. Lady Bird Deeds can be used to create a mortgage. A mortgage is a type of loan that is secured by real property. Lady Bird Deeds can be used to create a mortgage by transferring the title of the property to the lender as security for the loan.
14. Lady Bird Deeds can be used to create a lien. A lien is a type of legal claim against property. Lady Bird Deeds can be used to create a lien by transferring the title of the property to the lienholder as security for the debt.
15. Lady Bird Deeds can be used to create an easement. An easement is a type of legal right to use or access property. Lady Bird Deeds can be used to create an easement by transferring the title of the property to the easement holder.
16. Lady Bird Deeds can be used to create a covenant. A covenant is a type of legal agreement that runs with the land. Lady Bird Deeds can be used to create a covenant by transferring the title of the property to the covenantor.
17. Lady Bird Deeds can be used to create a restriction. A restriction is a type of legal limitation on the use of property. Lady Bird Deeds can be used to create a restriction by transferring the title of the property to the grantor.
18. Lady Bird Deeds can be used to create a servitude. A servitude is a type of legal burden on property. Lady Bird Deeds can be used to create a servitude by transferring the title of the property to the servient estate.

Benefits of Using a Lady Bird Deed

There are many benefits to using a Lady Bird Deed, including:

• Avoiding probate
• Protecting assets from creditors
• Reducing estate taxes
• Qualifying for Medicaid
• Creating a tenancy by the entirety
• Creating a trust
• Making a gift
• Creating a life estate
• Creating a remainder interest
• Creating a fee simple interest
• Creating a leasehold interest
• Creating a mortgage
• Creating a lien
• Creating an easement
• Creating a covenant
• Creating a restriction
• Creating a servitude

Drawbacks of Using a Lady Bird Deed

There are also some drawbacks to using a Lady Bird Deed, including:

• The property owner gives up control of the property. Once a Lady Bird Deed is signed, the property owner gives up control of the property to the new owner.
  1. The property owner cannot sell the property without the consent of the new owner. Once a Lady Bird Deed is signed, the property owner cannot sell the property without the consent of the new owner.
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