Nicknamed for President Lyndon B. Johnson’s wife, Claudia Alta “Lady Bird”, the Florida Ladybird Deed can be a valuable addition to estate planning practices. This legal document allows a homeowner to pass their home on to a beneficiary while retaining their rights of ownership until their passing.
By using a Florida ladybird deed, a homeowner can transfer property to someone else while remaining in – and retaining full control of – their residence during their lifetime. The property would then avoid probate and be received by the named beneficiary without any further action needed at the time of the original owner’s death.
While the beneficiary will receive the home’s title at the time of the owner’s passing, they have no right to it while the owner still lives. The owner may sell or rent as they see fit, and can even cancel the Florida ladybird deed or change its beneficiary.
Florida ladybird deeds have several benefits:
Allows the grantor to remain in their home with continued homestead protection.
Grantor retains full control of their property until their passing.
Seamlessly transfers property onto the beneficiary, avoiding probate May avoid the property from being subject to a federal gift tax.
Published: Sep 25, 2022
Updated: Aug 17, 2022