Transferring property is a difficult component of estate planning. A life estate deed is required when a homeowner is aligned with their beneficiary and wants to transfer property after their death. Aaron D. Millman, Esq., CPA, founded The Millman Law Group in 2018 to assist individuals with estate planning tasks such as drafting a life estate deed in Hillsboro Beach, FL. Our expert staff fights for our clients’ interests and works tirelessly to offer consistently satisfying services. We thoroughly analyze your needs before advising the best course of action. To determine whether a life estate deed is ideal for your estate plan, contact The Millman Law Group.
How Does a Florida Life Estate Deed Benefit You?
A life estate deed is something to consider as part of your overall estate planning strategy. When homeowners sign this deed, they transfer a portion of their property ownership to the recipient of their choice. This can be used to “pregift” a home to an heir while maintaining joint ownership while the original owner is still living. Life estate deeds are commonly used to transfer ownership of family property but can also be used to transfer ownership of land included in your estate.
How a Life Estate Deed Work
Life estate documents define shared property ownership. This can be utilized if a parent intends to leave their house to their adult child after death. A life estate deed can ensure a smooth transfer of ownership.
In this situation, the parent would create a life estate where they are the “life tenant” and their heir is a beneficiary. The parent stays in the house and is responsible for paying the insurance and property taxes.
However, when utilizing a life estate deed, the parent has limited authority over the property. Before making significant changes, such as taking out a mortgage or selling the home, the parent must obtain an agreement from the beneficiary. Because the initial owner cannot cancel the life estate deed without the approval of the heir, all parties must agree on property usage before creating the deed.
An Alternative Option: The Lady Bird Life Estate Deed
The “Lady Bird Deed,” or improved life estate deed, is an alternative to the life estate deed available to Florida families.
When you use a Lady Bird Deed, the grantor keeps ownership of the property while they are alive. The homeowner can mortgage, sell, and utilize their property without the beneficiary’s permission. Because a Lady Bird Deed is not considered an ownership transfer or a gift, it does not affect taxes owed or possible Medicaid benefits.
Why Do People Use Life Estate Deeds?
A life estate deed in Hillsboro Beach, FL, might help your family simplify the estate planning procedure. Homeowners who utilize this deed often do so for the following reasons:
- Emotional Relief: The homeowner can have peace of mind knowing that their home will transfer to their chosen heir.
- Avoid Gift Tax: Avoid taxes when transferring a property as a gift.
- No Will Changes Needed: The property does not need to be listed in your Will.
- Avoid Probate: Without a probate court proceeding, the heir immediately becomes the new property owner after the parent’s death.
- Retain Home Ownership: A life estate deed retains ownership of a home for someone as long as they live. They are not required to move out and make way for the new owner, and the property will automatically transfer upon their death.
Contact The Millman Law Group if a life estate deed sounds like an ideal fit for your estate plan.
Contact The Millman Law Group to Draft Your Life Estate Deed in Hillsboro 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.