In Florida, a Lady Bird Deed, also known as an Enhanced Life Estate Deed, is a legal instrument used for estate planning purposes. It allows property to be transferred to heirs or beneficiaries outside of the probate process while allowing the grantor (the person transferring the property) to retain control and use of the property during their lifetime. The Lady Bird Deed is named after Lady Bird Johnson, the former First Lady of the United States, who was rumored to have used a similar type of deed.
Regarding taxes on a Lady Bird Deed in Florida, it’s important to note that I can provide general information, not a substitute for legal advice. Laws and regulations can change, and specific details can vary depending on your individual circumstances. Therefore, it’s advisable to consult with a qualified attorney or a tax professional in Florida for personalized guidance.
In general, the creation of a Lady Bird Deed in Florida does not typically trigger immediate state or federal income tax consequences. The grantor retains control and ownership of the property during their lifetime, so there is no transfer of ownership for tax purposes until the grantor’s death.
However, it’s essential to be aware of potential estate tax implications. Florida does not have a state-level estate tax, but the federal government does have an estate tax that may apply to larger estates. The value of the property transferred through the Lady Bird Deed could potentially be included in the grantor’s estate for federal estate tax purposes.
It’s also important to consider property tax consequences. In Florida, certain property tax benefits may be available to homesteaded properties. Transferring a property through a Lady Bird Deed could affect the property’s classification as a homestead, which may impact property taxes. The specific rules and regulations regarding property taxes can vary by county, so it’s advisable to consult with your local property appraiser’s office for guidance on how a Lady Bird Deed might affect your property tax status.
Again, for professional advice and to fully understand the tax implications of a Lady Bird Deed in Florida, it’s strongly recommended to consult with an attorney or tax professional with expertise in Florida real estate and estate planning. They can provide guidance tailored to your specific situation.
