If you want to continue living in your home, and having complete control and rights to it, but ensure that it passes down to your beneficiary without it having to go through probate, a Lady Bird deed can accomplish this. Lady Bird deeds are also part of Medicaid planning—you get to continue having access to your home and qualify for Medicaid at the same time if you place your property in a Lady Bird deed. To learn more about this type of transfer of property, the attorneys at Strategic Counsel Law Group, L.C. are here to assist you.
What is a Lady Bird Deed?
A Lady Bird deed (also called an enhanced life estate deed), grants the owner of the deed control over the property until their death. When the owner (called the life tenant) dies, the property is transferred to their named beneficiary or beneficiaries. Florida is one of just five states in which Lady Bird deeds are used.
Benefits of Creating a Lady Bird Deed
There are two main benefits of creating a Lady Bird Deed:
- Avoiding Probate—The first benefit of a Lady Bird deed is to avoid probate—the legal proving of a will. Probate is time consuming, expensive, and all of the assets involved become part of the public record. By placing your real estate in a Lady Bird deed, your beneficiary or beneficiaries will have access and rights to the home much more quickly, and will avoid potential will contests that could strip them of the property you wanted them to have.
- Qualifying For Medicaid—The second traditional reason for creating a Lady Bird deed is to become eligible for Medicaid, which pays for long term care housing. In order to qualify for Medicaid, your assets must be incredibly low—$2,000 for an individual and just $3,000 for a married couple. These assets can include your family home. However, by placing your house or condominium in a Lady Bird deed, you effectively remove it from your countable assets, enabling you or your spouse to qualify for Medicaid benefits and long term care in a nursing home or assisted living facility. Furthermore, instead of having to give up your home, you retain the right to access it for the remainder of your life. When you pass away, the state of Florida cannot file a claim for reimbursement of Medicaid benefits. As such, your beneficiary will take control of the property, ensuring that it stays in the family.
Call a Lady Bird Deed Attorney Today
Whether your goal is to avoid probate or qualify for Medicaid without losing your home, Lady Bird deeds are often just one part of a well-thought-out estate plan. For comprehensive financial planning during the remainder of your lifetime and afterwards, we urge you to seek out the guidance of our Lady Bird deed attorneys at the Strategic Counsel Law Group, L.C. Call us today at 813-286-1700 to schedule a free consultation at your soonest convenience.
