Probates can sometimes turn into a drawn-out legal process in court. To avoid this, many Florida property owners choose a Lady Bird deed. But, is this the right choice?
What is a Lady Bird deed?
A Lady Bird deed is a highly efficient legal instrument that helps you pass down your property to your loved one without involving any court or judge. While Florida doesn’t have a statute for this, the Florida real estate transfer laws may apply to this deed.
What are the benefits?
Most of the benefits of this deed are concerned with easing the inheritance process. A few of them include:
- No court fees and more privacy, as it avoids probate court
- Significantly lower attorney fees compared to a revocable living trust
- Reduced exposure to Medicaid estate recovery after your death
These perks offer a straightforward way to secure your primary asset while maintaining full control over it during your lifetime.
What are the disadvantages?
The Lady Bird deed has a very specific function. This can lead to many disadvantages, including:
- Limitation to one property only (requiring separate deeds for multiple properties)
- Hesitation by title insurance companies towards Lady Bird deed properties
- Lack of protection against creditors
Based on an individual’s circumstances, these risks substantially undermine the intended benefits of the deed.
What should you choose?
If you are planning to leave your only home to one person, a Lady Bird deed could be an excellent option. However, if you have multiple properties, you might need a more sophisticated approach. In either case, a legal counselor experienced in probate and wills can help you draft a Lady Bird deed or an elaborate estate plan without costly errors and safeguard your interests as you intended.
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