Planning your estate can be a daunting task. Fortunately, Florida residents have the option of a Life Estate Deed, giving them greater flexibility to protect their legacy. This special type of deed, also known as a Beneficiary Deed or Transfer on Death, allows for the automatic transfer of your property upon your death by creating a life estate. After the execution of this deed, you continue to possess and use the property as a life tenant for the remainder of your life.

Instead of ownership transference through an estate after your death, a Life Estate Deed allows for the irrevocable transfer of your property to pass from you to your remaindermen [person or people who stand to inherit] without going through probate. Property transferred via a Life Estate Deed does not count when determining Medicaid eligibility; thus, it cannot be recovered by the state after your death. This also eliminates the opportunity for someone to contest ownership of property by invoking inheritance rights.

There are financial considerations when using a Life Estate Deed, both tax savings and fewer legal fees. The property is considered to be held until death so that any appreciation that may have accrued is not considered. Since the property does not transfer until your death, it maintains its Homestead Exemption status, reducing taxes.

Once a Life Estate Deed is executed, you cannot mortgage, lease, rent, or sell the property without the consent of the remaindermen; you only have the right to live on the property. The Enhanced Life Estate Deed or Lady Bird Deed is an Enhanced Life Estate Deed, allowing the life tenant to maintain complete control over the property for their lifetime. Allowing them to mortgage, lease, rent, or sell the property without the consent of the remaindermen in addition to the benefits of the Life Estate Deed.