What is a Lady Bird Deed?  Basically, a Lady Bird Deed is like a beneficiary designation on real property.  As generally written, a Lady Bird Deed (also called an enhanced life estate deed) transfers a piece of property immediately after the death of the owner.

Perhaps the biggest advantage of a Lady Bird Deed is that it allows your property to transfer to your beneficiaries without going through probate.  Probate is an added expense and another headache for your family members when they are already dealing with your loss.

Unlike some other ways to avoid the probate process to transfer your property, with a Lady Bird Deed, you still own the property.  You keep the right to do anything you want with your property.  You can still sell it, mortgage it, or change the beneficiary designation.  Additionally, like property inherited through the probate process, the beneficiaries get a step-up in basis when the property passes to them at your death.

Lady Bird Deeds have some disadvantages which should be discussed with your estate planning attorney before you go with this approach.

If you want to determine if a Lady Bird Deed is a good vehicle to include in your estate plan, talk to your favorite estate planning attorney who will advise you on whether a Lady Bird Deed would work in your situation.

Disclaimer:This article contains general information directed to Florida residents.This firm does not intend to give legal advice through this article.If you need legal advice, we encourage you to find an estate planning attorney licensed in your state.Additionally, this article does not create an attorney-client relationship between you and this firm.