LADY BIRD DEEDS VERSUS TRUSTS IN FLORIDA – A GENERAL OVERVIEW

Lady Bird Deeds and Revocable Living Trusts are two estate planning tools that serve different purposes. The following is a comparison between the two:

Lady Bird Deed:

  • Also known as an Enhanced Life Estate deed.
  • Allows an individual to retain control and use of the property during their lifetime.
  • Automatically transfers the property to named beneficiaries upon the owner’s death, avoiding probate.
  • Can be a cost-effective way to transfer a homestead property in Florida without giving up homestead protections.
  • The property owner retains the ability to revoke the deed, change beneficiaries, and maintain the property without obligations to the beneficiaries.
  • Does not require ongoing management or administration.

Revocable Living Trust:

  • A legal agreement created by a settlor or grantor (the party who creates the Trust) to manage assets during their lifetime and distribute them upon death.
  • Provides flexibility in managing various assets, not limited to the family home.
  • Avoids probate for all assets placed within the trust.
  • Can offer creditor protection for beneficiaries named in the trust.
  • May require the transfer of homestead property into the trust, potentially losing homestead protections.
  • Requires ongoing management and administration, including funding assets into the trust and updating beneficiary designations.

Choosing Between a Lady Bird Deed and a Revocable Living Trust:

  • Each option has its advantages and disadvantages, depending on individual circumstances.
  • Lady Bird Deeds are suitable for those primarily concerned with avoiding probate for their homestead property while maintaining control and flexibility.
  • Revocable Living Trusts are more comprehensive estate planning tools, suitable for those with extensive assets or specific needs such as creditor protection.
  • Consulting with an experienced estate planning attorney is crucial to determine the best option or combination of strategies for each individual’s situation.

Ultimately, the decision between a Lady Bird Deed and a Revocable Living Trust depends on a Florida resident’s goals, assets, and preferences, which can be best addressed through consultation with legal professionals specializing in estate planning.

The foregoing is a brief and general overview of the topic. If you have any additional questions regarding the foregoing or have any legal issue or concern, please contact the law firm of CASERTA & SPIRITI in Miami Lakes, Florida.