QUESTION

I'm in Florida. Can I file a quit claim deed and a Lady Bird Deed simultaneously? Want to come off title to mom's house yet avoid probate at death.

Asked on Jul 03rd, 2017 on Real Estate - Florida
More details to this question:
Currently on title to mom's house. Would like to change to beneficiary. Can i file a quit claim and a lady bird deed simultaneously?
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1 ANSWER

Asset Protection Attorney serving Vero Beach, FL at Charles H. Sanford Law Offices P.L.
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Ok, I'm assuming that neither you nor your mom is married. If this is the case then you file the quit claim deed to mom, then mom executes a separate Lady Bird deed reserving herself a life estate and naming you as beneficiary. However, there are risks, especially with homestead property. The Lady Bird Deed is in effect a will and the remainderman is a beneficiary. This can have title consequences unless spouse or descendants of the life estate holder entitled to the property are included as remaindermen. The following is an excerpt from an article re problems with lady bird deeds   Homestead. Homestead issues must be considered in every transaction and enhanced life estates are no different. Art. X, Sec. 4(c), Fla. Const., restricts the devise of homestead property where the decedent is survived by a spouse or minor child. An enhanced life estate deed differs from a standard life estate deed in one major way; in an enhanced life estate deed, the life tenant retains the ability to divest the remaindermen of their interest in the property until the moment of their death. As such, the transfer to the remaindermen is not complete until the life tenant has died. Therefore, the enhanced life estate essentially becomes a substitute will for the life tenant and, upon the death of the life tenant, the “devise” of homestead property to the remaindermen may run afoul of the Constitutional restrictions on the devise of homestead property. Due to these Constitutional concerns, The Fund will not insure title from an enhanced life estate after the death of the life tenant until any homestead issues have been resolved.  The Fund will consider insuring title in cases where there are homestead issues if an affidavit listing all of the heirs of the deceased life tenant and deeds from the remaindermen and all of the heirs of the deceased life tenant is obtained. Fund Members should contact Fund Underwriting Counsel to discuss the facts of their case. During the lifetime of the life tenant, The Fund may insure a sale or mortgage from the life tenant, without joinder of the remaindermen, to a third-party, bona fide purchaser for full value and consideration or to a third-party lender.
Answered on Jul 05th, 2017 at 6:54 AM

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