What is a lady bird life estate?
A “Lady Bird Deed” is a way to transfer property to someone else outside of probate while retaining a life estate in the property. Johnson used it to convey the property to his wife, Lady Bird Johnson. In Massachusetts, it is more commonly known as an Enhanced Life Estate Deed.
How does a Lady Bird deed enhance an estate?
A life estate becomes “enhanced” when it is not limited by the need for the remainderman’s consent. A Lady Bird deed does this by expressly reserving the life tenant’s right to transfer, mortgage, or otherwise use the property as he or she wishes, regardless of the remainderman’s future interest.
Can a Lady Bird deed be transferred without title insurance?
Title Insurance. A well-drafted Lady Bird Deed contains language that states that the grantor can transfer the property without the grantee’s consent or approval. However, some title insurance companies still require that the grantee sign a quit-claim deed in order to allow a conveyance which they will insure. Less Flexibility with Distribution.
What is a contingent remainder on a Lady Bird deed?
The grantor’s interest is called a life estate, and the grantee’s interest is called a contingent remainder. A Lady Bird deed form contains a provision to the effect that the life estate is “coupled with an unrestricted power to convey during the Grantor’s lifetime.”
Do you have to pay stamp tax on a Florida Lady Bird deed?
Although the Florida documentary stamp tax applies to transfers of real estate by deed, lady bird deeds escape taxation in most circumstances. The Florida Department of Revenue does not assess a full documentary stamp tax if the person who transfers the property is the same person that retains the life interest.
Can a grantor of a Lady Bird deed sell the property?
In other words, the grantor of the deed retains the right to live in the property during their lifetime, but he cannot not sell or transfer the real estate during his life without the remainderman’s consent. All lady bird deeds create a life estate, but not all life estate deeds are also lady bird deeds.
What’s the difference between a Quit Claim Deed and a Lady Bird deed?
The difference between a lady bird deed and a quitclaim deed in Florida is that a lady bird deed allows the current property owner to retain an enhanced life estate in the property during his life, while a quit claim deed typically transfers all title and rights to the property to the grantee, or the person receiving the property.
Why are Lady Bird deeds important to Medicaid?
Important: Lady bird deeds are an estate planning tool, not a planning strategy to become Medicaid eligible. These life estate deeds allow Medicaid recipients to protect their homes as an inheritance for loved ones without jeopardizing Medicaid eligibility. There are other techniques that help persons become eligible for Medicaid.
What’s the difference between a Lady Bird and enhanced life estate?
The enhanced life estate is the key and distinguishing feature of lady bird deed. Only states that allow an enhanced life estate, therefore, can have a lady bird deed. For that reason, a lady bird deed is often called an enhanced life estate deed. What’s the difference between a regular life estate and an enhanced life estate?