Lady Bird Deeds: Conveyance of Real Property for Estate Purposes
Channel: Roy Oppenheim
Date: 2024-03-01

Roy Oppenheim explains the benefits of a lady bird deed as an estate planning tool, allowing control over property transfer to heirs, avoiding probate or trust procedures, and providing flexibility during the homeowner's lifetime.

The recent Federal Court ruling, holding the National Association of Realtors and large brokerages liable for $1.8 billion, raises questions about the future structure of commissions, potentially leading to changes in how Realtor fees are set and paid, with potential shifts in the responsibility for payment and innovative pricing models emerging for buyers and sellers, fostering increased competition and transparency in the real estate market.

Oppenheim Law
2500 Weston Rd Suite 209
Fort Lauderdale, FL 33331 
954-384-6114
https://www.oppenheimlaw.com  

Full Transcript:

Hi, Roy Oppenheim here. A lot of times people ask me what the benefit is of a lady bird deed. A ladybird deed is an estate planning tool that can be used instead of a will if you don't have one or a supplement to a will whereby you designate who you want to receive your home when you pass.

Now if you do a traditional life estate deed, you actually are going to transfer the interest of your title to, for example, let's say your two children. And then if you want to sell or you want to refinance the home later on, you're going to actually need to get them to join in the deed, and if there's a problem with the family dynamics, someone may decide they don't want to sign it, maybe they got married. Maybe there's a third party involved with your child. But if you do a ladybird deed, what you're doing is saying, "Upon my death, the transfer of my interest in my home will go to my two children."

During your lifetime, you can change your mind. You can revoke it. You can sell the house. You can refinance. It's still all in your control. You do give up that control when, in fact, you don't do a ladybird deed. You do a life estate type of deed.

In some cases, people want to do that because they don't want to have interference where someone may make you change your mind in terms of a ladybird deed. But in most circumstances, you probably want to just have the ability to change your mind and remain in control until you pass on. And then the moment you pass on, that real estate will not go through probate. It won't go through a trust. It won't go through anything. It'll go right to your heirs. And so it's a really nice mechanism., and it's something that we like to use sometimes for our clients. Roy Oppenheim, "From The Trenches." Thank you.