Lady Bird Deed Explained and Drawn Out // Elder Needs Law

[@janetgonzalez7640]

Are the property taxes affected with implementation of a Lady Bird Deed?

[@elderneedslaw]

Property taxes are not impacted. This is because a lady bird deed does not actually change the current owner of the property (ownership only changes after property owner passes away).

[@ruabadkitty]

Thank you Jason.

[@elderneedslaw]

You are very welcome! I hope this video on lady bird deeds in Florida too. If you prefer to read information - the lady bird deed article is here: www.elderneedslaw.com/lady-bird-deed

[@ungarlinski7965]

And Medicaid of Owners 1 and 2?

[@elderneedslaw]

The lady bird deed does not negatively impact Florida Medicaid eligibility for the original owners.

[@donaleigh2352]

Does the mortgage become immediately due to the beneficiary?

[@elderneedslaw]

Likely yes. The mortgage lender probably has the right to accelerate the loan (depends on the actual language) since at the time of the title transfer, there is a new owner. The lender needs to protect their loan secured by the real estate.

[@donaleigh2352]

@@elderneedslaw Thank-You!

[@xxxxxx-jq2bz]

Would you please advise what specific steps one must take to "record a death certificate" as shown in the graphic? Thank you.

[@elderneedslaw]

Hi there - you can go down to your county clerk's office and they will do it for you...or rather the county clerk in which the real estate is located (you'll pay a recording fee). Or an attorney will have access to an online portal (only available to attorneys, title companies, etc...) that can do so electronically.

[@xxxxxx-jq2bz]

@@elderneedslaw Thank you for the helpful information. Much appreciated.

[@FirmBelieversFtL]

get a copy of the death cert from the Dr and walk into the court house records office with and say " record this' to the lady at the counter , thats it

[@morganpam]

In my research for my mom, WV resident, on ways to protect her home from Medicaid recovery, I discovered this type of deed. When my mom and I asked her lawyer about it, she said it doesn’t protect from recovery which doesn’t line up with everything I’ve read. She said mom should do do a life estate instead. I don’t have much faith in this lawyer as she wasn’t familiar with what a Lady Bird deed was and stated, even is found it to be a legal action, she wouldn’t draw one up. Am I correct in that it would protect the home from recovery and wouldn’t trigger the five year look back if my mom became Medicaid eligible for nursing home care? I’m the named executor of her will and have delved into research on this subject matter. Thank you!

[@elderneedslaw]

Unfortunately, I can only comment on Florida law. Not all states recognize lady bird deeds and Medicaid is more aggressive in certain states compared to others. Id suggest consulting with a Medicaid planning attorney in WV (you can find one here: www.naela.org)

[@giannaperez8240]

My husband seems to think you can make deductions from the capital gain by adding the renovations that you’ve done in the house to increase value. Is that true?

[@elderneedslaw]

I do not know. That would be a better question for a tax professional.

[@kenyu4258]

Thank you for the explanation and the chart....I understand that the original owner of the house is excluded from the first $250k ($500k for couples) of the capital gain from selling the house; is it true that once the owner drafted a Lady Bird Deed and sell the house during their life time, the owner will no longer have that capital gain tax exclusion?

[@elderneedslaw]

I have never heard that before. That being said, I am no tax expert. I’m going to ask a tax attorney colleague of mine. However, my initial instinct tells me that this would not be the case because using a ladybird deed is in fact, not a sale at all.

[@lewisautomatic]

I have a will. I have POD's on my bank accounts and TOD's on my retirement/brokerage accounts. All of my personal items and belongings are given to beneficiaries in my will. With all that in place , wouldn't a Lady Bird Deed be better than going to the expense and hassle of setting up a living trust just to leave my house to someone? And can you Lady Bird Deed a house that has an existing mortgage? Thank you.

[@elderneedslaw]

A lady bird deed might be all that is needed assuming that everything goes according to plan. There are certain circumstances where one would prefer a Revocable Living Trust to a Lady Bird deed (check out these videos: kzbin.info/www/bejne/qGTYhJWQrJ2ipac and kzbin.info/www/bejne/rnKonHhsiq2tbJo, which discuss Lady Bird Deeds vs. Revocable Trusts). Lady Bird Deeds do not trigger the due-on-sale clause with your mortgage lender (because no ownership interest is being changed and the LBD is not a sale). But call them to verify.

[@lewisautomatic]

@@elderneedslaw Thank you Jason.

[@elderneedslaw]

@@lewisautomatic you are very welcome!

[@ginaprespare1316]

Does the remainder man own the property on paper even though they can't do anything with it? Also, if the house is in the revocable trust, if the trust is sued doesn't that mean the house is included? Thanks.

[@elderneedslaw]

In a lady bird deed, the remaindermen have zero ownership interest until the primary owner passes away. Whether or not the house is potentially subject to collection/creditors has more to do with whether or not it is homestead. For the next generation set to inherit the property, the revocable trust can be a fantastic asset protection tool if drafted properly.

[@stevemacdonald3522]

May a Canadian Snowbird use the Lady Bird deed to transfer the home in Fla. to another Canadian partner? Thank you.

[@elderneedslaw]

As long as the property is located in Florida, it shouldn’t be a problem. We certainly cannot opine as to whether there are any estate taxes (upon original owner’s passing) or other issues to consider that would be Canada-specific.

[@Mztee42]

Judgment Against Remainderman (Designated Beneficiary), lady bird deed Can a lien be put on the property ?

[@elderneedslaw]

Check out this article. Scroll down to section called: How Are Judgments and Liens Handled with Lady Bird Deeds in Florida. www.elderneedslaw.com/lady-bird-deed