Boynton Beach Lady Bird Deed Frequently Asked Questions
How do I tell whether my life estate deed is the good kind?
Read the reservation. An enhanced life estate deed, the Lady Bird Deed, expressly reserves to the owner the power to sell, convey, mortgage, lease and revoke during life without the joinder or consent of the remaindermen. A traditional life estate deed reserves a life estate and stops there. On the page the two documents can look almost identical, often a single paragraph apart, but the difference decides whether you can sell your own house without asking your children. If you cannot find that reservation language, assume nothing and have the deed read.
What actually goes wrong with a traditional life estate deed?
You become a life tenant rather than an owner in the ordinary sense. You can live there for life, but you generally cannot sell, mortgage or grant an easement without every named remainderman signing. That is tolerable while everyone is alive, well and on good terms. It stops being tolerable when one has died and their own heirs must be found, when one is a minor and a court-appointed guardian is needed, when one lives abroad, when one is incapacitated, or when one simply says no. The moment you most need to sell, to fund care or to move closer to family, is exactly the moment the door is locked.
Can I just revoke it and start again?
No, and this is the hard part. A traditional life estate deed gave away the remainder interest when it was recorded. Those people own something now, not at your death, and you cannot take it back by yourself. Fixing it generally requires a conveyance back from every remainderman, or their joinder in a new deed, which means every one of them must be located, alive, competent and willing. Recording a new deed on your own over the top of the old one does not undo it, and can leave the record more tangled than before.
Are there tax and creditor problems too?
Often, yes, and they are the quieter half of the problem. Transferring a remainder interest is generally treated as a completed gift when the deed is recorded, which can carry a gift tax reporting obligation. Because the remaindermen own a present interest, that interest can be exposed to their creditors, their divorces and their bankruptcies while you are still living in the house. And because a real transfer occurred, the transaction can raise Medicaid look-back questions that an enhanced life estate deed would not. Confirm the tax treatment of your situation with a tax advisor.
Who was signing these deeds in Boynton Beach?
A great many people, over a long period. Boynton Beach has a large stock of older villa, condominium and active-adult housing, and a population where 22.5% are 65 or older. Deeds prepared decades ago from stationery-store forms, from software, or by well-meaning non-lawyers are common here, and so are deeds prepared correctly for a situation that has since changed entirely. The point of this page is not that old deeds are bad. It is that a deed you signed twenty years ago deserves ten minutes of reading now, while every option is still open.
What if a remainderman on my old deed has already died?
It depends what the deed says. If the remainder was vested, it generally passed into that person's own estate rather than lapsing, which can mean their heirs now hold the interest and their signatures are needed. If the deed named a class or used per stirpes language, the answer may be different. Either way it is a question of construing the document, and it is why the list of named remaindermen and what has happened to each of them is the first thing worth writing down. Our Plantation page covers what happens when a beneficiary dies first in more detail.
Is a Lady Bird Deed better in every case?
Not in every case, and it would be wrong to say so. An enhanced life estate deed keeps you in control and avoids probate on that property, which suits most owners passing a home to capable adults. But where a beneficiary is a minor or needs protecting, where you want to direct a sale and divide proceeds rather than hand several people a jointly owned house, or where property sits in more than one state, a trust does things no deed can do. What is nearly always true is that a traditional life estate deed is the worst of the available options, because it gives up control without buying anything the alternatives do not offer.
Where do I find my recorded deed?
In the Palm Beach County Official Records, maintained by the Clerk of the Circuit Court & Comptroller. The records are searchable by name, and the last recorded deed for your property is the operative one. If you would rather not do it yourself, bring whatever paperwork you have to a consultation. Ten minutes with the recorded instrument answers the question, and the answer is either reassuring or worth knowing.
Where is a new Lady Bird Deed recorded in Palm Beach County?
With the Clerk of the Circuit Court & Comptroller, Palm Beach County, which differs from Broward where deeds go to the county Records, Taxes & Treasury Division instead. The main recording counter is at 205 North Dixie Highway, Room 4.2500, West Palm Beach, generally open 8 a.m. to 4 p.m. weekdays, with branch counters at the South County Courthouse in Delray Beach, the North County Courthouse in Palm Beach Gardens, the West County Courthouse in Belle Glade and the Royal Palm Beach branch. Documents may also be mailed or submitted through e-recording.
Do my beneficiaries get a stepped-up basis?
Under an enhanced life estate deed, generally yes. Because you keep the enhanced powers, the property remains in your gross estate at death, which normally produces a stepped-up cost basis. Under a traditional life estate deed the analysis is different for the remainder interest that was given away during your lifetime, which is one more reason the distinction between the two documents matters financially and not just practically. Confirm the treatment with a tax advisor.
Can a Boynton Beach Lady Bird Deed be changed or revoked later?
Yes, and that is the entire difference between the two instruments. Under a properly drafted enhanced life estate deed you can sell the property, refinance it, lease it, add or remove beneficiaries, or revoke the deed entirely without the consent of the people named to receive it. A new deed is prepared and recorded to make the change effective. Nothing you sign locks you out of your own home or requires you to ask permission later.
More general questions are answered on our Florida Lady Bird Deed FAQ page.