ENHANCED LIFE ESTATE DEED (LADY BIRD DEED)

State of Florida

Common Law Enhanced Life Estate Deed

NOTICE: THIS DEED CONVEYS A REMAINDER INTEREST IN REAL PROPERTY TO THE NAMED REMAINDER BENEFICIARY(IES), SUBJECT TO AN ENHANCED LIFE ESTATE RETAINED BY THE GRANTOR. THE GRANTOR RETAINS THE ABSOLUTE AND UNCONDITIONAL RIGHT TO SELL, MORTGAGE, LEASE, OR OTHERWISE DISPOSE OF THE PROPERTY DURING THE GRANTOR'S LIFETIME WITHOUT THE CONSENT OF ANY REMAINDER BENEFICIARY. THE REMAINDER INTEREST IS SUBJECT TO COMPLETE DIVESTMENT BY THE GRANTOR AT ANY TIME.

Prepared by and return to:
[________________________________]
[________________________________]
[________________________________]

Property Appraiser's Parcel Identification Number: [________________________________]

ARTICLE I -- GRANTOR INFORMATION

Date of Execution: [__/__/____]

Grantor Name: [________________________________]

Grantor Date of Birth: [__/__/____]

Grantor Mailing Address:
[________________________________]
[________________________________]
[________________________________]

Grantor Marital Status:
☐ Single / Unmarried
☐ Married to [________________________________]
☐ Widowed
☐ Divorced

Co-Grantor / Spouse (if applicable):

Co-Grantor Name: [________________________________]

Co-Grantor Date of Birth: [__/__/____]

Co-Grantor Mailing Address:
[________________________________]
[________________________________]

ARTICLE II -- PROPERTY DESCRIPTION

The Grantor hereby conveys the following described real property located in [________________________________] County, State of Florida:

Property Street Address:
[________________________________]
[________________________________]

Legal Description:

[________________________________]
[________________________________]
[________________________________]
[________________________________]
[________________________________]

ARTICLE III -- HOMESTEAD DISCLOSURE AND ACKNOWLEDGMENT

Pursuant to the Florida Constitution, Art. X, § 4, and Fla. Stat. §§ 732.401 and 732.4015, the Grantor makes the following homestead declaration:

☐ Homestead Property. The above-described property is the Grantor's homestead as defined under Article X, Section 4 of the Florida Constitution.

☐ Non-Homestead Property. The above-described property is NOT the Grantor's homestead.

Homestead Restrictions -- Important Notice

If the property is the Grantor's homestead and the Grantor is survived by a spouse or minor child, Florida law imposes significant restrictions on the devise of homestead property:

• If survived by a spouse but no minor child: Under Fla. Stat. § 732.4015, the homestead may only be devised to the spouse. An attempt to devise homestead to anyone else while a spouse survives is void, and the surviving spouse may elect to take a life estate in the homestead with a vested remainder to the lineal descendants, or a one-half interest as tenant in common.

• If survived by a minor child (with or without a surviving spouse): The homestead may not be devised and descends pursuant to Fla. Stat. § 732.401.

Spousal Joinder Requirement: If the Grantor is married and the property is homestead, the spouse must join in the execution of this Deed to make a valid conveyance under Florida law (Fla. Const. Art. X, § 4(c)).

Spousal Joinder (if applicable)

I, [________________________________], spouse of the Grantor, hereby join in the execution of this Enhanced Life Estate Deed for the purpose of conveying, relinquishing, and waiving any and all rights I may have in the above-described property, including but not limited to homestead rights, dower rights, and any other spousal interest.

Spouse Signature: ________________________________

Printed Name: [________________________________]

Date: [__/__/____]

ARTICLE IV -- GRANT OF ENHANCED LIFE ESTATE AND REMAINDER INTEREST

Section 4.1 -- Conveyance

The Grantor, [________________________________], for and in consideration of Ten Dollars ($10.00) and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, does hereby grant, bargain, sell, alien, remise, release, convey, and confirm unto:

The Grantor -- An enhanced life estate in the above-described property, as set forth in Section 4.2 below; and

The Remainder Beneficiary(ies) -- A remainder interest in the above-described property, subject to the Grantor's enhanced life estate, as designated in Article V below.

Section 4.2 -- Enhanced Life Estate Powers

The Grantor reserves unto himself/herself an enhanced life estate in the above-described property for the duration of the Grantor's natural life, together with the following absolute and unrestricted powers (the "Enhanced Powers"):

1. Power to Sell or Convey. The Grantor retains the absolute right to sell, convey, transfer, or otherwise dispose of all or any part of the property, including the fee simple interest, without the joinder, consent, or agreement of any remainder beneficiary.

2. Power to Mortgage or Encumber. The Grantor retains the absolute right to mortgage, pledge, encumber, or otherwise hypothecate the property, including the fee simple interest, without the joinder, consent, or agreement of any remainder beneficiary.

3. Power to Lease. The Grantor retains the absolute right to lease all or any part of the property for any term, including a term extending beyond the Grantor's lifetime, without the joinder, consent, or agreement of any remainder beneficiary.

4. Power to Revoke. The Grantor retains the absolute right to revoke, amend, modify, or terminate this Deed and the remainder interest created herein at any time during the Grantor's lifetime, by executing and recording a new deed or other recorded instrument, without the joinder, consent, or agreement of any remainder beneficiary.

5. Power to Change Beneficiaries. The Grantor retains the absolute right to change the remainder beneficiary(ies) at any time during the Grantor's lifetime by executing and recording a new deed.

6. Power to Consume. The Grantor retains the absolute right to use, consume, deplete, or waste the property without any duty of preservation, maintenance, or accounting to any remainder beneficiary.

7. Power to Collect Rents and Profits. The Grantor is entitled to all rents, profits, income, and other benefits from the property during the Grantor's lifetime.

8. No Duty to Remainder Beneficiary. The Grantor has no obligation or duty to the remainder beneficiary(ies) with respect to the property during the Grantor's lifetime, including no duty to maintain, insure, or preserve the property.

ARTICLE V -- REMAINDER BENEFICIARY DESIGNATION

Section 5.1 -- Primary Remainder Beneficiary(ies)

Upon the Grantor's death, and subject to the Enhanced Powers retained by the Grantor during lifetime, the remainder interest in the property shall vest in and belong to the following remainder beneficiary(ies):

Total percentage must equal 100%.

Section 5.2 -- Form of Co-Ownership Among Multiple Beneficiaries

If more than one remainder beneficiary is designated, the beneficiaries shall take title as:

☐ Tenants in Common -- Each beneficiary receives an undivided fractional interest in the property as specified above.

☐ Joint Tenants with Right of Survivorship -- All beneficiaries hold equal shares with right of survivorship.

☐ Tenants by the Entireties (married couples only)

Section 5.3 -- Alternate (Contingent) Remainder Beneficiary(ies)

If any primary remainder beneficiary does not survive the Grantor, the deceased beneficiary's share shall pass to the following alternate beneficiary(ies):

Section 5.4 -- Survivorship Requirement

☐ A remainder beneficiary must survive the Grantor by at least [____] days to receive the property interest under this Deed.

☐ If no primary or alternate beneficiary survives the Grantor by the required period, the property shall pass through the Grantor's probate estate.

ARTICLE VI -- NATURE OF REMAINDER INTEREST

The remainder interest created by this Deed is an unvested remainder subject to complete divestment by the Grantor through exercise of any of the Enhanced Powers during the Grantor's lifetime. See Oglesby v. Lee, 73 Fla. 39, 73 So. 840 (Fla. 1917).

The remainder beneficiary(ies):

1. Have no present possessory interest in the property during the Grantor's lifetime;
2. Have no right to occupy, use, or possess the property during the Grantor's lifetime;
3. Have no right to prevent the Grantor from selling, mortgaging, leasing, or otherwise disposing of the property;
4. Have no right to demand an accounting from the Grantor;
5. May not encumber the remainder interest during the Grantor's lifetime;
6. May not compel the Grantor to maintain or insure the property.

ARTICLE VII -- MEDICAID AND PUBLIC BENEFITS PLANNING

Section 7.1 -- Medicaid Planning Considerations

A Lady Bird Deed may offer significant benefits for Medicaid planning purposes:

1. No Transfer Penalty. Because the Grantor retains the Enhanced Powers (including the absolute right to sell, mortgage, or revoke), the execution of this Deed generally does not constitute a disqualifying transfer of assets for Medicaid eligibility purposes. The Florida Medicaid manual recognizes enhanced life estate deeds and instructs caseworkers that they are not to be treated as a transfer of assets.

2. Probate Avoidance. Because the remainder interest vests automatically upon the Grantor's death, the property passes outside of probate and is generally not part of the Grantor's probate estate.

3. Medicaid Estate Recovery. Under current Florida law, Medicaid estate recovery is limited to the probate estate. Because property passing through a Lady Bird Deed is not part of the probate estate, it is generally not subject to Medicaid estate recovery under current rules.

Section 7.2 -- Important Medicaid Disclaimers

☐ Medicaid rules are complex and subject to change. This template does not guarantee Medicaid eligibility or protection from estate recovery.

☐ The Grantor should consult with an elder law attorney regarding the specific Medicaid implications of this Deed.

☐ If the Grantor applies for Medicaid within five (5) years of executing this Deed, the value of the remainder interest may be examined as part of the Medicaid look-back period analysis.

ARTICLE VIII -- TAX CONSIDERATIONS

Section 8.1 -- Property Tax

Because the Grantor retains the enhanced life estate, the property remains assessed as the Grantor's property for ad valorem tax purposes:

☐ The Grantor's homestead exemption under Fla. Stat. § 196.031 is preserved.
☐ The "Save Our Homes" assessment cap under Fla. Const. Art. VII, § 4(d) is preserved.
☐ Any senior citizen exemption is preserved.

Section 8.2 -- Documentary Stamp Tax

Under current Florida Department of Revenue guidance, no documentary stamp tax is due upon recording this Deed because no present beneficial interest is transferred. Documentary stamp tax may be due upon the Grantor's death when the remainder interest vests.

Section 8.3 -- Federal Tax Considerations

1. No Gift Tax. Because the Grantor retains the Enhanced Powers, including the power to revoke, the transfer of the remainder interest is generally not treated as a completed gift for federal gift tax purposes.

2. Stepped-Up Basis. Because the Grantor retains powers sufficient to include the property in the Grantor's gross estate under IRC § 2036, the property should receive a stepped-up basis to fair market value as of the date of the Grantor's death under IRC § 1014.

3. Estate Tax Inclusion. The property will be included in the Grantor's gross estate for federal estate tax purposes.

ARTICLE IX -- ENCUMBRANCES

The remainder interest conveyed herein is subject to:

☐ All recorded mortgages and liens
☐ All recorded easements and rights-of-way
☐ All recorded covenants, conditions, and restrictions
☐ All property tax liens and assessments
☐ All ad valorem taxes not yet due and payable
☐ All zoning regulations and building codes
☐ Any other encumbrances of record

ARTICLE X -- RECORDING REQUIREMENTS

Section 10.1 -- Recording

This Deed must be recorded in the Official Records of [________________________________] County, Florida, to provide constructive notice of the conveyance pursuant to Fla. Stat. § 695.01.

Section 10.2 -- Recording Information

ARTICLE XI -- EXECUTION

Section 11.1 -- Grantor Signature

I, the undersigned Grantor, declare that I am executing this Enhanced Life Estate Deed voluntarily, that I am of legal age and sound mind, and that I understand the nature and consequences of this conveyance.

Grantor Signature: ________________________________

Printed Name: [________________________________]

Date: [__/__/____]

Co-Grantor Signature (if applicable): ________________________________

Printed Name: [________________________________]

Date: [__/__/____]

Section 11.2 -- Witness Attestation

Pursuant to Fla. Stat. § 689.01, this Deed is signed in the presence of two subscribing witnesses:

Witness 1:

Signature: ________________________________

Printed Name: [________________________________]

Address: [________________________________]

Witness 2:

Signature: ________________________________

Printed Name: [________________________________]

Address: [________________________________]

Section 11.3 -- Notary Acknowledgment

STATE OF FLORIDA
COUNTY OF [________________________________]

The foregoing instrument was acknowledged before me by means of:

☐ Physical presence, or
☐ Online notarization

on this [____] day of [________________], 20[____], by [________________________________] (and [________________________________], if applicable), who is/are:

☐ Personally known to me, or
☐ Has/have produced [________________________________] as identification.

Notary Public, State of Florida

Signature: ________________________________

Printed Name: [________________________________]

My Commission Expires: [__/__/____]

Commission Number: [________________________________]

[NOTARIAL SEAL]

ARTICLE XII -- IMPORTANT NOTICES AND DISCLOSURES

Notice to Grantor

1. Florida does not have a statute specifically authorizing Lady Bird Deeds. They are recognized under common law and general property law principles. Judicial authority is limited.
2. You retain full control of the property during your lifetime, including the right to sell, mortgage, lease, or revoke.
3. Homestead restrictions apply. If you are married and the property is your homestead, your spouse must join in the execution of this Deed. If you are survived by a spouse or minor child, constitutional homestead restrictions may apply.
4. Medicaid planning benefits are not guaranteed. Consult an elder law attorney regarding Medicaid implications.
5. Property taxes remain your responsibility during your lifetime. Your homestead exemption and Save Our Homes cap are preserved.
6. This Deed requires two witnesses and notarization to be valid under Florida law.

Notice to Remainder Beneficiary

1. You have no present right to occupy, use, or possess the property during the Grantor's lifetime.
2. The Grantor may sell, mortgage, lease, or revoke this Deed at any time without your consent.
3. Your remainder interest is unvested and subject to complete divestment.
4. Upon the Grantor's death, you should record a certified copy of the death certificate in the county where the property is located.
5. You may be subject to creditor claims against the Grantor's estate under certain circumstances.

CHECKLIST FOR COMPLETION

☐ All Grantor information completed in Article I
☐ Full legal description of property included in Article II
☐ Parcel Identification Number verified and included
☐ Homestead status disclosed in Article III
☐ Spousal joinder obtained (if homestead property and Grantor is married)
☐ At least one primary remainder beneficiary designated in Article V
☐ Alternate beneficiaries designated (recommended)
☐ Form of co-ownership selected (if multiple beneficiaries)
☐ Survivorship period specified in Section 5.4
☐ Deed signed by Grantor before two witnesses and a Notary Public
☐ Both witnesses signed and printed names
☐ Notary acknowledgment completed with seal and commission number
☐ Deed recorded in the Official Records of the county
☐ Copy retained by Grantor for personal records
☐ Medicaid and tax implications reviewed with attorney
☐ Attorney review completed before execution

SOURCES AND REFERENCES

• Florida Constitution, Art. X, § 4 -- Homestead Exemption
• Florida Constitution, Art. VII, § 4(d) -- Save Our Homes Assessment Cap
• Fla. Stat. § 689.01 -- How Real Estate Is Conveyed
• Fla. Stat. § 689.02 -- Execution of Deeds (Witnesses Required)
• Fla. Stat. § 689.06 -- Quit-Claim Deeds and Life Estates
• Fla. Stat. § 695.01 -- Conveyances to Be Recorded
• Fla. Stat. § 695.11 -- Documentary Stamp Tax on Deeds
• Fla. Stat. § 196.031 -- Homestead Exemption from Ad Valorem Taxation
• Fla. Stat. § 732.401 -- Descent of Homestead
• Fla. Stat. § 732.4015 -- Devise of Homestead
• Oglesby v. Lee, 73 Fla. 39, 73 So. 840 (Fla. 1917) (enhanced life estate deed)
• The Florida Bar Journal, "Lady Bird Deeds" (RPPTL Section)
• IRC § 1014 -- Basis of Property Acquired from a Decedent (stepped-up basis)
• IRC § 2036 -- Transfers with Retained Life Estate (estate tax inclusion)
• Florida Medicaid Eligibility Manual -- Enhanced Life Estate Deeds