When developing an estate plan, you should explore strategies to help manage your property and pass on assets to your beneficiaries without hitting major roadblocks.
Enhanced life estate deeds, sometimes known as “Lady Bird Deeds,” can help transfer real estate ownership outside the probate process. In addition, some people use enhanced life estate deeds as part of Medicaid planning.
Deeds and estate planning
There are many steps you can take to facilitate the transfer of assets for your beneficiaries. Many people place their property in living trusts or use documentation that exempts their property from probate. Florida and several other states allow property owners to create enhanced life estate deeds. With an enhanced life estate deed, you can name an heir for a real estate property you own and retain control of the property during your lifetime.
Benefits of enhanced life estate deeds
When planning for your future, using an enhanced life estate deed has many advantages. Depending on your situation, this type of deed can help you become eligible for Medicaid and protect your home from creditors. Furthermore, an enhanced life estate deed can reduce taxation on your property by avoiding federal gift taxes. In addition, probate can be costly and time-consuming. You can save time and money for your beneficiaries and the personal representative you name to administer your estate. Finally, unlike a basic life estate deed, an enhanced deed gives you the ability to sell your property, profit from its use and alter the deed at any time.
Enhanced life estate deeds can enable you to minimize costs for your beneficiaries while maintaining control of your real estate property.