Orlando Lady Bird Deeds
An Orlando lady bird deed is a type of deed that provides a way for the owner of real estate property to maintain the use and control of their property throughout their life, with an heir or beneficiary becoming the rightful owner upon the previous owner’s death. Lady bird deeds are particularly beneficial because they allow heirs to avoid the probate process and take immediate control of the property. Orlando lady bird deeds contain two important provisions, known as the life estate provision and the transfer on death deed. Our Orlando lady bird deed lawyers can help draft your documents.
The Life Estate Provision
Owned property is typically known as ‘fee simple,’ which means the current property owner has total control and ownership of the property. Any time a person wishes to transfer ownership through a standard deed with a life estate provision, the fee simple ownership divides into two different categories. These are the life estate and the remainder. The grantor, or the existing owner of the property, will retain control and use of the property until their death. The grantee, or the person the property is being transferred to, will take ownership of the remainder of the property upon the original owner’s death.
Without a lady bird provision, the grantor must first obtain the grantee’s permission to sell the property during their lifetime. A lady bird deed though, is also known as an enhanced life estate deed, which means obtaining the consent of the grantee is not necessary.
The Transfer on Death Deed
The transfer on death deed, otherwise known as the TOD deed, automatically and immediately transfers ownership to the grantee upon the grantor’s death. People often use TOD deeds in place of a will, as legal wills still have to go through the probate process. It is important to note that TOD deeds are not legally recognized on their own in Orlando. However, a lady bird deed is an effective way to achieve the same solution.
Drawbacks to Lady Bird Deeds in Florida
An Orlando lady bird deed can provide a solution for many people that wish to transfer property without the need for probate, but there are some drawbacks it is important to know about. These include:
- Creditors can still place liens on the remaining interest outlined in the lady bird deed.
- Lady bird deeds cannot be used to disinherit a minor child or a spouse.
- If the grantee passes away before the grantor, it can become legally unclear about what happens to the remaining property after the death of the grantor.
- Should a grantor decide in the future not to transfer the property to the grantee, it can create issues within the estate plan.
An attorney can fully advise on lady bird deeds, and when they are appropriate and when they are not.
Need a Lady Bird Deed in Orlando? Call Us!
An Orlando lady bird deed can bring many benefits and when you need one drafted, our attorneys at My Florida Deed can help. Call us today at 407-205-2906 or fill out our online form to obtain the deed form you need and to learn more about how we can help.