Lady Bird Deeds Attorneys Serving Central Florida
In Florida, the Lady Bird Deed lets you bypass probate court, keep your powers to yourself, keep your Medicaid eligibility, and qualify for the Florida Homestead exemption. The first important advantage of a lady bird deed is that it avoids probate court in Florida for the real estate being deeded.
The lady bird deed’s second important advantage is that it permits you to keep your Florida homestead benefits. This implies you won’t lose your homestead exemption in your real estate for tax reasons, and your property taxes won’t go up as a result of the deed change. Furthermore, you will be able to keep your homestead protected against forced sale for your stake in the Homestead.
Most importantly for our elder law clients, a Lady Bird Deed allows you to maintain Medicaid eligibility. In Florida, Medicaid takes your assets into account when determining your Medicaid eligibility. Your homestead, on the other hand, is usually not counted as an asset for Medicaid eligibility purposes to some extent. To the degree that it is your homestead, a Florida lady bird deed should not affect your Medicaid eligibility.
Finally, a lady bird deed is not considered a completed gift for tax purposes. Because you have the power to revert ownership and retain many of the rights in the actual property, it is not a fully completed gift.
The IRS Code Section 1014 allows for a step-up in basis after you die. A step-up in basis has the advantage of allowing your beneficiaries to sell the real estate without incurring any federal income tax penalty. Our attorneys can help you establish a Lady Bird Deed, protecting your assets and Medicaid eligibility. We have office locations in Orlando, Lake Nona, Tavares, DeLand, and Port Orange, Florida. Reach out to us today to learn more about our services.