Transferring property is a primary concern of most people during estate planning. When a homeowner agrees with a beneficiary and wants to transfer property ownership to them in the simplest way, a life estate deed can help accomplish this. The Millman Law Group, established in 2018 by Aaron D. Millman, Esq., CPA, can help you plan your most effective life estate deed in Boynton Beach. Our team of expert attorneys always advocates for our clients and provides consistent and professional services. We always consider each family’s unique needs before advising the best course of action. The Millman Law Group in Boynton Beach can help you determine whether a life estate deed is the best choice for your personal interests.
The Primary Purpose of Your Life Estate Deed
When estate planning, you might consider signing a life estate deed. When homeowners sign this document, they pass part of their property ownership to another person. This can be seen as a way to “pregift” a home to heirs while retaining joint ownership. Life estate deeds are often used to pass down homes, but they can be used to transfer ownership of any land in your estate.
What Does Your Life Estate Deed Do?
Life estate deeds outline the legal joint ownership of a property. For example, if a mother wants to transfer her home to her daughter when she dies, she can utilize a life estate deed to make this transaction as smooth as possible.
In that instance, the mother would establish a life estate for her home that makes her the tenant and her heir the remainderman or beneficiary. The mom can continue to live in her house for as long as she wants and is responsible for paying property tax and insurance.
However, the mother would no longer have complete control over her house when using this traditional life estate deed. She would then need approval from her heir when making significant changes like selling the home or taking out a mortgage. She cannot revoke the life estate without her consent, so it is critical to ensure that this is the wisest decision for all involved parties.
Another Option: The Lady Bird Life Estate Deed
Fortunately, another life estate option exists. A “Lady Bird Deed,” also known as an enhanced life estate deed, is available in some states, including Florida.
When you use a Lady Bird Deed, the grantor maintains complete control of their property during their lifetime. The homeowner can sell, use, and mortgage their property without consent from beneficiaries. A Lady Bird Deed is not considered an ownership transfer or a gift, so it will not negatively impact any taxes owed or Medicaid benefits.
The Benefits of Life Estate Deeds
Creating a life estate deed in Boynton Beach can be beneficial for families hoping to simplify the estate planning process. When using this deed, homeowners enjoy the following advantages:
- Emotional Relief: After signing the deed, the property owner can relax knowing that their property will go to their chosen heir.
- Avoid Probate: After the parent’s death, the heir can immediately become the new property owner without a probate court proceeding.
- Avoid Gift Tax: When you transfer the property as a gift, instead of through a life estate deed, that gift is subject to tax.
- No Will Changes Necessary: The property does not have to be included in your will.
- Retain Home Ownership: A life estate deed provides housing for a person for the rest of their life. No moving or transfer is required before they pass, and the property transfer occurs instantly.
Contact The Millman Law Group today if a life estate deed sounds like an ideal option for your property.
Contact The Millman Law Group to Draft Your Life Estate Deed in Boynton Beach
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.