Estate & Disability Planning Archives - Page 2 of 2

The Intricacies of Estate Planning

by Elderly Care Law Firm | Dec 2, 2022 | Estate & Disability Planning

Estate planning is not just for the rich or retired. It provides instructions should you become incapacitated or how to care for minor children. More importantly, it becomes a living document as assets fluctuate and conditions change. Without it, acquired assets can wind up in probate for years while ex-wives, children and business partners all via for inheritance of the assets. With a little planning, you can avoid having your assets tied in probate while the court determines the distribution of your assets.

The first step is to have a will or trust. They have their differences and share some similarities and which is appropriate for you will take some analysis. One basic distinction between the two is that a will does not take effect until the owner dies, while a trust becomes effective once it is signed. This usually avoids the property being tied up in probate as things get sorted out. Once the will or trust is completed, then an executor or power of attorney makes sure that the assets are distributed as instructed. For instance, the beneficiary may not be entitled to assets until she/he reaches the age of 21; Or the owner may become incapacitated and has the power of attorney to carry out final decisions.

Proper estate planning is an intricate process that requires delibrate planning to maximize tax benefits and avoid any confusion. We here at Elder Care Law Firm would love to take the time to go over your unique situation and start an Estate plan for you. You can learn more about us at https://www.elderlycarelawfirm.com/estate-disability-planning/.

Lady Bird Deed

by Elderly Care Law Firm | Jan 22, 2018 | Estate & Disability Planning

What is a Lady Bird Deed?
A Lady Bird Deed is a type of deed that allows the owner of a property to transfer that property to a specified beneficiary upon their death without the need for that beneficiary undergo the probate administration process. The original property owner maintains complete control over the property until their death – including the right to change their minds and sell the property if they so choose. The technical term for a Lady Bird Deed is an “Enhanced Life Estate Deed”. These are also sometimes known as a “Transfer on Death Deed”. Lady Bird Deeds are only available in a limited number of states, including Florida.

How do Lady Bird Deeds work?
Lady Bird Deeds split the ownership of a property into two types of interests – a life estate and a remainder interest (i.e. ownership in the property after the life tenant dies). As a life tenant, the original owner of the property would maintain ownership and control of the property for their lifetime. Upon their death, the property would automatically transfer to the beneficiary or beneficiaries of their choosing (remaindermen). This effectively means that the property will never be a part of the original owner’s probate estate because upon their death, the property is no longer theirs. Therefore, the beneficiaries may own the property outright without waiting for the property to be transferred to them after the estate has been administered through probate – a process that can take years in many instances.

Lady Bird Deed

What are the benefits of Lady Bird Deeds?

1. Avoidance of Probate
Once the original owner of a property subject to a Lady Bird Deed dies, the property automatically transfers to the remaindermen without going through probate.

2. Maintained Control
In addition to maintaining complete control over the property up until death, the original owner of the property also maintains the ability to change their minds and sell the property if they chose to do so. Unlike with standard life estates, any changes the original owner decides to make – including mortgaging, selling, do not require the consent or approval of the remaindermen.

3. Medicaid Planning
When applying for Medicaid, an applicant may not have transferred any property within 5 years of submitting their application. Because the owner maintains control of the property throughout their lifetime, a Lady Bird Deed is not considered a transfer of assets for Medicaid purposes.

What is the downside to Lady Bird Deeds?

Homestead rules.
Florida Statutes provide a prohibition against disinheriting one’s spouse or minor children from the family homestead. If the property subject to a Lady Bird Deed is the owner’s primary residence and the owner has a spouse or minor child, then their rights may impact those of the chosen remaindermen upon the owner’s death.

How can I learn more?

Our staff here at the Elderly Care Law Firm are well versed in the laws surrounding Lady Bird Deeds and other matters of estate planning. Give us a call at (305) 564-6606 to schedule a consultation.

Contributed by Rosa Newman, JD