People spend a lifetime accumulating their assets, and most often have very specific wishes about how they would like their estate to be distributed upon their death. There are legal designations that determine how the process of the distribution of the estate proceeds. A qualified attorney can help ensure that your final wishes are captured in legal documents, such as a beneficiary deed, and that your heirs or beneficiaries will receive the assets you leave them without having to go through probate. Show
DOES THE STATE OF FLORIDA HAVE BENEFICIARY DEEDS?Yes. Florida uses TOD (Transfer-on-Death) and POD (Payable-on-Death) designations which allows the beneficiary (or beneficiaries) to automatically receive the specified asset upon the death of the current owner. TOD designations are often used to transfer the funds in an IRA or brokerage account to a beneficiary. POD designations are generally used for bank accounts and stocks. One of the benefits of TOD and POD designations is that the beneficiary (or beneficiaries) do not have any right to the funds until the death of the owner. However, in the State of Florida, TOD and POD designations cannot be used to transfer real estate or property. Instead, Florida recognizes enhanced life estate deeds, also known as Lady Bird deeds to transfer property to one or more beneficiaries. This designation works similarly to TOD and POD designations, but is used strictly for real estate. WHAT EXACTLY IS A LADY BIRD DEED?Only five states currently allow Lady Bird Deeds, and Florida is one of them. The other states are Texas, Michigan, Vermont, and West Virginia. By using a Lady Bird deed, a person transfers all properties and real estate to himself until death. This creates what is called a life estate in the owner. A Lady Bird or beneficiary deed further allows the owner to designate beneficiaries who will receive his property upon his death. One of the key provisions of a Lady Bird deed is that it allows the original owner to retain all the rights of ownership while he is still alive, without having to get consent from the named beneficiaries. This is what makes the Lady Bird deed an enhanced life estate. In a traditional life estate, the owner shares control of the property with the beneficiaries for the rest of his life. By terms of an enhanced life estate, or Lady Bird deed, the owner does not share control of the property with the beneficiaries. The owner retains full and complete control of the property. The owner can change his mind at any time, leave his property to someone else, gift it to someone, mortgage the property, or sell the property – all without having to involve the beneficiaries at all. ADVANTAGES TO USING A LADY BIRD DEEDThere are several benefits to using a Lady Bird or beneficiary deed:
DISADVANTAGES OF A LADY BIRD DEED
Estate planning is extremely important to ensure that your assets are distributed the way you want them to be, minimize or eliminate the tax burden for your heirs or beneficiaries, and ensure that your assets are not eaten up by Medicaid in the event you need
long-term health care in a facility. Consultant with an Experienced Florida Estate Planning Attorney TodaySetting up a beneficiary deed can be complicated. Working with an experienced estate planning attorney is a worthwhile decision when determining what you need to set up for your future. For further guidance, consult with an experienced estate planning attorney today. Schedule AConsultation TodayWe care. We listen. We can help. (305) 614-7379 FAQ Frequently Asked QuestionsA beneficiary deed allows a property owner to designate a beneficiary in the event of their death. With a beneficiary deed, this designated person does not have any ownership of
the property until the current owner passes away. The use of a beneficiary deed depends on your particular financial situation and what your goals are for your estate. An experienced estate planning attorney will be able to best advise you on whether or not a beneficiary deed is a good idea for you specifically. A beneficiary deed does not guarantee that probate will be avoided, but it is an excellent way to help make sure it is far less of a possibility. Is transfer on death valid in Florida?Yes. Florida uses TOD (Transfer-on-Death) and POD (Payable-on-Death) designations which allows the beneficiary (or beneficiaries) to automatically receive the specified asset upon the death of the current owner. TOD designations are often used to transfer the funds in an IRA or brokerage account to a beneficiary.
Does transfer on death avoid probate in Florida?Florida Statute 711.507 provides that financial accounts are made beneficiary accounts by adding a “payable on death” or “transfer on death” designation. These financial accounts are referred to as “POD” or “TOD” accounts. Using POD and TOD checking and savings accounts avoid probate, but they have disadvantages.
How do you transfer house after death in Florida?In most instances, there will need to be a court order to transfer the property. And in Florida, that means opening a probate. In Florida, probate is a court proceeding that is filed in the county where the deceased person last resided. The two types of probate are summary and formal.
Does Florida have a transfer of deed?When you transfer title and ownership of real estate in Florida, you sign a deed conveying or transferring the property to the new owner. In most real estate closings, the seller is responsible for providing the deed that is signed at closing.
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