When to Record a Lady Bird Deed: A Guide

A common question about Lady Bird Deeds (also known as Enhanced Life Estate Deeds) is when they should be recorded. Below, we explain the recording process, its importance, and key considerations based on expert guidance.

When is a Lady Bird Deed Recorded?

A Lady Bird Deed is typically recorded right after it is executed. Here’s how the process works:

1. Consult an Attorney: You inform your attorney about your chosen beneficiaries, which could be one or more individuals, a trust, or even a primary and secondary beneficiary.

2. Draft and Review: The attorney prepares the deed, and you should double-check it for accuracy.

3. Sign and Notarize: You sign the deed in front of a notary public and two witnesses.

4. Recording: The attorney’s office usually records the deed with the county recorder’s office on the same day or the next business day. You receive a copy of the recorded deed.

Recording the deed is crucial because it puts the public on notice about the current owner and who will inherit the property after the owner’s passing. Without recording, disputes or confusion may arise later.

Some individuals may prefer not to record the deed publicly due to privacy concerns. If this applies to you, discuss the pros and cons with your attorney to make an informed decision.

Does Recording Affect Ownership or Taxes?

Recording a Lady Bird Deed does not change your ownership rights or tax status. Key points include:

• You retain full ownership rights, including homestead status, so your property taxes remain unchanged.

• Beneficiaries (or remaindermen) have no present ownership rights until your passing, meaning they gain no control or interest when the deed is recorded.

• The deed includes language confirming that homestead rights are preserved, ensuring no impact on your property’s status.

You can still sell, rent, take out a mortgage, or refinance the property without needing permission from the beneficiaries. The Lady Bird Deed does not hinder your ability to manage the property during your lifetime.

Can You Change a Lady Bird Deed After Recording?

Yes, you can change the beneficiaries or revoke the deed at any time. To do so:

• Work with an attorney to prepare a new Lady Bird Deed with updated beneficiaries.

• Sign and notarize the new deed, then record it to replace the previous one.

• You can repeat this process as often as needed during your lifetime.

This flexibility ensures you maintain full control over the property and can adjust your estate plan as circumstances change.

Challenges with Lady Bird Deeds

Some confusion arises because Lady Bird Deeds (Enhanced Life Estate Deeds) differ from traditional Life Estate Deeds. With a traditional Life Estate Deed, you cannot sell the property without the consent of the remaindermen, as they have a vested interest. In contrast, a Lady Bird Deed allows you to retain all ownership rights, so no consent is needed.

However, some lenders or title companies may mistakenly believe that beneficiaries have a vested interest, which can complicate refinancing or selling. For example:

• If a lender refuses to refinance due to the Lady Bird Deed, your attorney can prepare a Quitclaim Deed to transfer the property back to you (or you and your spouse) as the sole owner(s).

• After refinancing, a new Lady Bird Deed can be executed and recorded with the same or updated beneficiaries.

Despite clear language in the deed stating that beneficiaries have no vested interest until your passing (and only if the deed remains unchanged), some lenders may still require this workaround.

Why Record a Lady Bird Deed?

Recording the deed ensures it is part of the public record, clarifying who the current owner is and who will inherit the property upon your passing. This transparency helps prevent disputes or challenges after your death. Most estate planning attorneys record the deed immediately after it is signed and notarized to provide legal clarity and protection.

If you have questions about Lady Bird Deeds, estate planning, Medicaid, or probate in Florida, contact an experienced estate planning attorney for guidance.

Disclaimer: This article is for informational purposes only and is not a substitute for professional legal advice. Always consult with a qualified attorney for guidance specific to your situation.