(239) 676-7492 Estero, FL | (239) 514-5048 Naples, FL
Blog Layout
Enhanced Life Estate Deeds
dged@ged-law.com
– A Simple Estate Planning Tool for Floridians
An enhanced life estate deed is a unique type of deed recognized in Florida and just four other states. It is sometimes referred to as a “Lady Bird” deed and can be used to transfer ownership of real property to intended beneficiaries upon death without the need for probate.
With an enhanced life estate deed, the owner of the real property is called the “life Tenant” and retains full and complete control over the property during the owner’s lifetime. The life tenant has the right to sell, convey, mortgage and even rent the property without the consent of the beneficiaries named in the deed which are sometimes referred to as “remainderman”.
In addition, a home transferred to beneficiaries by virtue of an enhanced life estate deed is included in the value of the life tenant’s estate for estate tax purposes as it is considered an inheritance. However, only estates that are valued greater than $11.4 million are subject to federal taxation as of 2019.
Property acquired by beneficiaries through an enhanced life estate deed does not trigger any gift tax liability for the owner since the property is being conveyed at the time of the owner’s or life tenant’s death.