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Estate planning in Florida often involves a range of tools to ensure your assets are protected and your wishes are honored. One such tool is the Lady Bird Deed, a popular choice for many Florida residents. In this article, we’ll focus on a critical question: Do property taxes change when you use a Lady Bird Deed in your Florida estate plan?
What Is a Lady Bird Deed?
A Lady Bird Deed, also known as an enhanced life estate deed, is a legal instrument that allows a property owner to retain ownership and control of their property during their lifetime while naming beneficiaries to inherit the property upon their death. This type of deed is widely used in Florida estate planning because it offers several benefits, including avoiding probate and maintaining eligibility for Medicaid.
Key Benefits of a Lady Bird Deed
Avoiding Probate: The property passes directly to the named beneficiaries, bypassing the probate process.
Medicaid Eligibility: Retaining control of the property helps preserve eligibility for Medicaid benefits.
Flexibility: The owner retains the right to sell, mortgage, or otherwise manage the property during their lifetime.
Do Property Taxes Change with a Lady Bird Deed?
One of the most common concerns about using a Lady Bird Deed in Florida is whether it will trigger a reassessment of property taxes. The good news is that there is no reassessment of property taxes when you create a Lady Bird Deed. Here’s why:
No Ownership Change
When you establish a Lady Bird Deed, you are not conveying a present interest in the property to your beneficiaries. The current owner—the person creating the deed—retains full ownership and control of the property during their lifetime. Since the title doesn’t change, there is no trigger for a property tax reassessment.
Homestead Exemption Protection
For Florida residents claiming a Homestead Exemption, this is particularly beneficial. Florida’s Homestead Exemption provides valuable property tax savings, including a 3% cap on annual property tax increases. By using a Lady Bird Deed, you ensure that this exemption and cap remain intact because there is no immediate transfer of ownership.
Avoiding Tax Pitfalls
To fully protect your property tax benefits, working with a knowledgeable Florida estate planning attorney is crucial. They will ensure that the deed properly reflects the Homestead Exemption and complies with Florida law, safeguarding you from any unexpected issues.
Why Choose a Lady Bird Deed?
In addition to the tax benefits, a Lady Bird Deed offers peace of mind. It allows you to:
Maintain control of your property during your lifetime.
Simplify the transfer of your property to loved ones.
Avoid potential disputes by clearly outlining your wishes.
This makes the Lady Bird Deed an excellent tool for many Florida estate plans.
Partner with a Florida Estate Planning Lawyer
When it comes to creating a Lady Bird Deed or any other component of your Florida estate plan, professional guidance is essential. An experienced Florida estate planning attorney can ensure that your documents are properly drafted and your goals are achieved without unexpected complications.
AtCause Law Office focuses on estate planning, asset protection, elder law, and Medicaid planning. Our team is here to answer your questions and help you craft a plan tailored to your unique needs.
Contact atCause Law Office Today
If you’re ready to discuss your Florida estate planning needs or have questions about Lady Bird Deeds, contact atCause Law Office at 727-477-2255. Our experienced team of Florida estate planning lawyers is here to provide the guidance you need. Don’t wait—secure your future and protect your loved ones today!
The content provided on this blog is for informational purposes only. It is not intended to be, nor should it be construed as legal advice. While we strive to ensure the accuracy and reliability of the information presented, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability concerning the blog or the information, products, services, or related graphics contained on the blog for any purpose. Therefore, any reliance on such information is strictly at your own risk.
We strongly recommend you consult an attorney for specific legal advice tailored to your circumstances.
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