Owners of Florida real estate have always sought ways of transferring title their home or other real property at death without the cost and delay of probate. While inter vivos trusts are popular, such estate planning schemes are usually too expensive for persons of modest means.

A tool employed by Byrd & Barnhill to help our clients avoid probate is a conveyance by deed of the client’s property to the ultimate beneficiary (legally called “remainderman”), but reserving the use and possession of the property for the remainder of the owner’s life (legally called a “life estate”). On the surface this method of transfer is deceptively simple, yet there can be serious unintended consequences of such an outright transfer. First of all, once the deed is signed, sealed and delivered it becomes irrevocable. If the owner needs to mortgage or even sell the property, it cannot be done without the remainderman’s consent. Also, the remainderman’s creditors can attach his or her interest in the property – definitely an unwanted situation.

Florida Enhanced Life Estate Deed

In order to avoid the unintended and unwanted consequences of an absolute conveyance of the owner’s property, Florida legal practitioners have begun to use the so-called “Lady Bird Deed” reputed to have been used by the late President Lyndon Johnson to convey his property to “Lady Bird” prior to his death. The correct name of this instrument is the Enhanced Life Estate Deed. Read More...

Tags: Life Estate, Lady Bird Deed, Enhanced Life Estate Deed, Probate, Avoiding Probate, Remainderman, Estate Planning