What is a Life Estate Deed?
A life estate deed is a particular deed that Estate Planning Attorneys utilize, which ultimately depends on the client’s needs and circumstances. A life estate deed allows the owner(s) (aka grantor) to transfer their home to their beneficiaries (aka grantees) upon their death. Not all states allow for this type of deed, but Florida is one of the few states that permits it.
What are the benefits of using a Life Estate Deed?
One of the major benefits of using a life estate deed is that probate is avoided. If you are interested in reading more on probate, read this blog post. The home transfers automatically to the beneficiaries listed on the deed upon the death of the owner(s). Another benefit of using a life estate deed is that it doesn’t affect medicaid eligibility. So, if you are currently receiving medicaid benefits, using a life estate deed will not have any bearing on your medicaid benefits.
What are the disadvantages of using a Life Estate Deed?
If you use a standard life estate deed, it’s quite possible that you will need to have all of the beneficiaries consent to an undoing of the deed after you’ve signed. You must use an enhanced life estate deed with legal language that reserves your rights as owner of the property that will allow you to lease, sell, etc. the property without the consent of the beneficiaries. Another disadvantage is that if one of the beneficiaries die, their share of the interest in the property will be distributed to their estate via Probate.
What if I need more information about a Life Estate Deed?
If you are interested in knowing more about a life estate deed, please call our office anytime (24/7) at (813) 897-0295 and schedule your initial consultation today. Thank you.
