Deeds are used to transfer property into trusts by assuring that the trustee has authority (there are no encumbrances with the title) to transfer real property to the beneficiary. For estate planning, there are a number of different types of deeds that can serve this purpose. Here at the Strategic Counsel Law Group, L.C., our attorneys can advise you on asset preservation and distribution trusts, help you record the deed with the local recording authority, and advise you on other estate planning matters that might be to your and your heirs’ benefit.
General Warranty Deeds
General warranty deeds are used by grantors to prove that a property does not have encumbrances. For example, a property with a lien on the title, a mortgage, or title defects would hinder a transfer to the grantor’s beneficiary, and the property would likely have to pass through probate. A general warranty deed places all of the liability on the shoulders of the grantor in case there is a mistake with the title. As such, general warranty deeds are the most secure for grantees.
Special Warranty Deeds
A special warranty deed accomplishes the same thing as a general warranty deed: ensuring that there are no defects with the title. However, a special warranty deed only provides this guarantee of title before the grantor took possession of the title. As such, special warranty deeds do not provide the same level of protection as a general warranty deed.
Quitclaim Deeds
A quitclaim deed transfers property like special warranty deeds and general warranty deeds by recording the deed with the local registry. However, quitclaim deeds are the least secure for grantees. A quitclaim deed does not make the grantor liable in the event that the grantor did not, in fact, own the property they are transferring to the grantee.
Lady Bird Deeds
A Lady Bird deed is unlike the other three types of deeds mentioned above, in that it allows the grantor access and control over the property until they die. Lady Bird deeds are used to avoid probate, like special warranty, quitclaim, and general warranty deeds are by placing the property in trusts, but Lady Bird deeds effectively remove the property from the grantor’s estate before death. As such, Lady Bird deeds are not only used to avoid probate, but to qualify for the long term care benefits provided by Medicaid.
Call a Florida Deed Attorney Today for Assistance With Your Estate Plan
In order for the smooth transfer of real property to your beneficiaries when you have passed away, it is essential that you choose the correct type of deed and trust, and that you have a clear understanding of any potential encumbrances such as liens, mortgages, or title defects that could interfere. To get started on your estate plan today, or to make a modification of your existing estate plan, do not hesitate to contact a deed attorney at the Strategic Counsel Law Group, L.C. Call 813-286-1700 today to schedule a free consultation.
