When estate planning, the transfer of property is a primary concern. However, if a homeowner is in agreement with their beneficiary and wants to transfer property ownership in the simplest way possible, a life estate deed can do just that. The Millman Law Group, established in 2018 by Aaron D. Millman, Esq., CPA, can help you formulate your ideal life estate deed in Boca Raton. Our team of skilled attorneys always advocates for our clients and provides the consistent, patient, and professional services they require. Every person’s estate needs are different, so we listen carefully before advising the best actions to take. A life estate deed is a legally binding document and must be considered carefully. The Millman Law Group in Boca Raton can help our clients discover whether this step is the best decision for their personal and financial interests.
What Is a Life Estate Deed?
When estate planning, you may consider signing a life estate deed in Boca Raton. When a homeowner signs this deed, they are passing part of their homeownership to another person. You can think of this as a way to “pregift” your home to your heirs while still retaining joint ownership. Life estates are most often used for homes, but they can be used for any land you own or anything attached to the land.
How Does A Life Estate Deed Work?
Life estate deeds create legal joint ownership of a property. For instance, if a mother wants to pass her home down to her son when she passes away, she may use a life estate to make the transaction as smooth as possible.
This mother would establish a life estate for her home, making her the life tenant and her heir the remainderman or beneficiary. The mom continues to live in her home for as long as she wants and is responsible for property tax and insurance payments.
However, when using a traditional life estate deed, the mother no longer has complete control over her house. She will need approval from her son to make significant changes like selling it or taking out a mortgage. She cannot revoke the life estate without his consent, so it is crucial to make sure that this is the right decision for all parties before making the commitment.
A Better Option: The Lady Bird Life Estate Deed
Property owners can utilize a “Lady Bird Deed” or enhanced life estate deed in certain states, including Florida.
When using a Lady Bird Deed, the grantor maintains complete control of their property during the grantor’s lifetime. The grantor may sell, use, and mortgage the property during their lifetime without requiring the consent of the beneficiaries. Executing a Lady Bird Deed is also not considered a transfer of ownership or a “gift,” so it does not negatively impact Medicaid benefits or taxes owed.
The Benefits of Life Estate Deeds
Creating a life estate deed in Boca Raton can be very helpful when families want to simplify the estate planning process. The primary benefits of creating a life estate deed include the following:
- Avoid Probate: When a parent dies, the heir becomes the new owner without a probate court proceeding.
- No Will Necessary: The property does not have to be included in a will. The life estate deed is signed, and the transaction is done.
- Emotional Relief: When the homeowner signs the deed, they can experience relief knowing that their property will go to their chosen heir after their death.
- Avoid Gift Tax: Using a life estate deed can be preferable to transferring the property as a gift from the parent to an heir because that gift would be subject to tax.
- A Home: A life estate deed provides housing for someone until they die. There is no transfer or moving required before they pass, and the transfer of property happens instantaneously.
If a life estate deed sounds like the best plan for your property, contact The Millman Law Group today.
Contact The Millman Law Group to Draft Your Life Estate Deed in Boca Raton
Millman Law Group, PLLC is one of the only law firms that offers life planning in South Florida. From life care planning to the preparation of detailed estate plans, Millman Law Group has committed to serving Floridian elderly communities in Boca Raton, Palm Beach County, Ocean Ridge, Hillsboro Beach, and many other areas since 2018. Our dedicated team specializes in special needs trusts and catering to any age demographic because we know that it’s never too early to start preparing for your future. For the latest news in estate planning and elder care law, follow us on Facebook, Twitter, LinkedIn, and Pinterest. You can also contact us at 561-463-6480.