Learn when it’s best to establish a life estate deed in Deerfield Beach.
Transferring property is challenging for any person navigating estate planning. When a homeowner agrees with their beneficiary and wants to transfer property after their death, they must establish a life estate deed. The Millman Law Group was established in 2018 by Aaron D. Millman, Esq., CPA, and is here to help you draw up your life estate deed in Deerfield Beach, FL. Our experienced team advocates for the needs of our clients and works hard to provide consistently satisfying services. We consider your needs carefully before recommending the best course of action. Contact The Millman Law Group to decide whether a life estate deed is right for your estate plan.
How a Florida Life Estate Deed Benefits You
A life estate deed is worth considering as part of your comprehensive estate plan. When homeowners sign this deed, they transfer a portion of their property ownership to the selected beneficiary. This can be a way to “pregift” a home to an heir while keeping joint ownership while the first owner is alive. Life estate deeds are typically used to pass down family property, but they can be used to transfer the ownership of land included in your estate.
How Does Your Life Estate Deed Work?
Life estate deeds outline joint ownership of a property. This can be used when a parent plans to transfer her home to their adult child after death. A life estate deed can prepare for a more seamless transition of ownership.
In that scenario, the parent would establish a life estate that names them the “life tenant” and their heir as a beneficiary. The parent continues living in the home and is responsible for paying insurance and property taxes.
However, in this case, the parent will only partially control the property when using a life estate deed. The parent needs approval from the beneficiary before making significant changes, like taking out a mortgage or selling the property. The first owner cannot revoke the life estate deed without the heir’s consent, so all parties must be in agreement about property use before establishing the deed.
A Second Option: The Lady Bird Life Estate Deed
An alternative option to the life estate deed is the “Lady Bird Deed,” or enhanced life estate deed available to Florida families.
When you utilize a Lady Bird Deed, the grantor retains control of the property when they live. The homeowner can mortgage, sell, and use their property without requiring consent from the beneficiary. A Lady Bird Deed is not classified as an ownership transfer or a gift, so it doesn’t negatively impact taxes owed or potential Medicaid benefits.
Why People Choose to Use Life Estate Deeds
Creating a life estate deed in Deerfield Beach, FL, can help your family simplify your estate planning process. When you use this deed, homeowners enjoy the following advantages:
- Avoid Probate: Without a probate court proceeding, the heir becomes the new property owner immediately after the parent’s death.
- No Will Changes Necessary: The property does not need to be listed in the will.
- Avoid Gift Tax: Avoid taxes that occur when you transfer property as a gift.
- Retain Home Ownership: A life estate deed retains a home for a person as long as they live. They do not need to move out to make way for the new owner, and the property transfers automatically upon their death.
- Emotional Relief: The homeowner can relax knowing their home will transfer to their chosen beneficiary.
Contact The Millman Law Group if a life estate deed is a good fit for your estate plan.
Contact The Millman Law Group to Draft Your Life Estate Deed in Deerfield 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.