You may already know which of your loved ones you wish to inherit your house upon your unfortunate passing. But you may not be ready to give it up just yet, especially if you have already expressed your preference to receive healthcare assistance at home rather than move to a nursing home or residential care facility. You may consider a transfer-on-death deed to get the best of both worlds. Well, please read on to discover whether you can utilize a transfer-on-death deed and how a seasoned Broward County estate administration lawyer at The Probate Lawyers can help you make a legally enforceable estate plan.
Can I have a transfer-on-death deed in my estate plan in Florida?
If your house resides in Florida, you must understand that this state does not observe or offer transfer-on-death deeds. However, it allows for an enhanced life estate deed, which is more commonly referred to as a lady bird deed.
Transfer-on-death and lady bird deeds are similar in that they allow you, the property owner, to transfer the property directly to your named beneficiary upon your death, all while avoiding the Florida probate court. Ultimately, you may maintain ownership rights for the rest of your lifetime, including the ability to use, sell, or mortgage the property.
However, the key distinction is that a lady bird deed grants enhanced powers to you, in that you may make these decisions regarding the property without requiring the named beneficiary’s consent first.
What are the potential drawbacks of a lady bird deed?
While you may be drawn to the enhanced property management rights provided with a lady bird deed, you must carefully consider whether its potential drawbacks still make it worth establishing.
For one, when you maintain ownership rights over this property, you may hinder your Medicaid eligibility. This is especially if the property in question is considered a non-exempt property like a rental property, timeshare, or vacation home. And while your primary home may be exempt from Medicaid’s asset limit, this is unless it goes beyond the home equity limit of approximately $713,000, as of 2024.
What’s more, even if you decide to transfer your house to qualify for Medicaid, you must not do so within five years of applying. This is because Medicaid has a five-year look-back period, and if this is discovered in your financial history, your eligibility may be undoubtedly delayed.
On top of this, transferring your property through a lady bird deed may not afford your named beneficiary the same creditor protection as if this was accomplished through a trust document. Notably, a trust may curb the dreaded probate process in the same manner.
No matter what, you do not need to feel alone in this process. A competent Broward County estate administration lawyer is ready to be in your corner and support you throughout. So please reach out to The Probate Lawyers whenever you are ready.
