Enhanced Life Estates/Lady Bird Deeds

An Enhanced Life Estate Deed is another tool available for asset protection planning for Florida residents. The use of this type of deed provides a simple mechanism to convey real estate to your heirs outside of probate while protecting the asset from creditors. You give up no rights to the property. The heirs named in the deed to receive the property after your death have no interest in the property until your death. You retain the right to sell, mortgage, convey, gift or cancel the remainder interest to your heirs at any time during your lifetime.
  • Avoids the need to probate your estate
  • The transfer does Not affect your homestead tax exemption.
  • There is No need to file a gift tax return as the IRS considers the transfer an incomplete gift.
  • The value of the interest transferred will Not be considered a completed gift for Medicaid purposes and will Not be subject to the “look back” rules.
  • The transfer does Not affect your mortgage or your mortgage company.
  • There is no capital gains tax if the property is sold shortly after your death.

Patricia L. Ferrari has decades of experience in helping her clients with estate planning and asset protection and offers a free initial consultation.