How Do Life Estate Deeds Work in Tampa?
If you’re planning to leave behind your family home after you pass away, you might be interested in something called a “life estate deed.” Many families choose this option when considering estate planning strategies in Tampa, but is this truly the right choice for you? To answer this question, you might want to meet with a Tampa estate planning lawyer and discuss your specific circumstances.
What Is a Life Estate Deed?
If you own your own home in Florida, you (and perhaps your spouse) might be the only people on the “deed.” With a normal life estate deed, you’ll add one or more people to the deed. Why would you want to do this? Because when you pass away, your family home will automatically pass to the other people on the deed. The key benefit of this arrangement is that your home won’t go through probate. Probate is an expensive and time-consuming process that most families strive to avoid in Florida.
The Downside of a Traditional Life Estate Deed
If you choose a normal life estate deed, you’ll experience a few potential disadvantages. First, you need to understand that when you add someone to your deed, the IRS might see this as a gift. This could present potential tax issues, although most families do not have to worry about federal tax due to extremely high exemption levels in the modern era.
The more pressing concern is the lack of control you may have over your own home. When you choose a normal (traditional) life estate deed, you’ll need your family member’s permission if you want to rent or sell the property. Many families are not comfortable with this for obvious reasons.
What About Enhanced Life Estate Deeds?
An enhanced life estate deed can solve this problem. Also known in Florida as a “lady bird deed,” this option gives you more control over your home while still offering your beneficiaries estate planning advantages. Florida is one of a handful of states that allow these deeds, so it makes sense to consider them if you live in the Sunshine State.
The concept is exactly the same, but you’ll retain complete control over your property throughout your lifetime. Suppose you add your adult child to the deed using an enhanced life estate deed. In this situation, you won’t need to get their permission to sell or rent the home in the future. Upon your passing, your beneficiary can inherit the family home without going through probate.
If your spouse is still alive after you pass, they retain the same level of control as a “life tenant.” It is only when they pass away that your chosen beneficiary finally gains control of the home.
Can a Seminole Estate Planning Lawyer Help Me?
A New Port Richey estate planning lawyer may be able to help if you’re wondering how to leave your family home to your loved ones. While a life estate deed is a common and effective choice for many families, it is not your only option. Consider discussing your specific circumstances in more detail with Knudsen Law today.
Source:
floridabar.org/the-florida-bar-journal/lady-bird-deeds/
