FAQ
LADY BIRD DEED a/k/a Enhanced Life Estate Deed
What is a Lady Bird Deed / Enhanced Life Estate Deed?
An Enhanced Life Estate Deed, is a form of deed that is used to automatically transfer ownership of real estate to others upon the death of the owner. A Lady Bird Deed is only available in Florida, Michigan, and Texas.
What are the Advantages of a Lady Bird Deed?
- Avoids Probate
A Lady Bird Deed allows you to avoid probate and pass your property to your family and leave an inheritance while allowing you to have full title rights during your life.
- Maintain homestead advantages
Many states offer asset protection and taxation benefits for a person's principal residence. These benefits may be lost with certain types of ownership transfers, but not with a Lady Bird Deed.
- Tax savings
Designating a beneficiary is not an immediate transfer, so no federal gift tax is owed. With a Lady Bird Deed, the beneficiary acquires ownership on the current owner's date of death. If the beneficiary later sells the property, any capital gain will be based upon the value of the property at the original owner's date of death, not the value when the original owner acquired the property.
- Maintain Medicaid eligibility
If a person applying for Medicaid has made a gift of property within a certain period before applying, that gift may delay the receipt of benefits. Upon a Medicaid recipient's death, the government may seek reimbursement from the recipient's probate estate. Fortunately, a Lady Bird Deed is not usually considered a gift of the property, nor is the property part of the probate estate subject to reimbursement.
What are the Disadvantages of a Lady Bird Deed?
** Keep in mind that as long as you’re alive, a Lady Bird Deed has no impact on (or benefit for) your Beneficiary. He or she has no legal rights to the property until after you pass away. That means you pay the property taxes on it until you die.
An additional downside to a Lady Bird Deed is it’s not an effective tax beneficial tool. However, the threshold is quite high, and the majority of Beneficiaries do not pay taxes on Lady Bird Deeds. They will, however, take over any financial obligations on the property once they are owner, such as mortgage payments and property taxes.
In what states is a Lady Bird Deed available?
A Lady Bird Deed is only available in Florida, Michigan, and Texas.
FAQ
Transfer on Death Deed
What is a Transfer on Death Deed?
A Transfer on Death Deed ("TOD Deed") allows a real property owner to designate a beneficiary to receive title to certain real property on the owner’s death without a probate proceeding or trust administration.
There are different names for a Transfer on Death Deed, and sometimes those names may depend on what state you live in.
Transfer on Death Deeds may also be called:
- Transfer-on-Death Instrument
- Deed Upon Death
- Beneficiary Deed
- TODD
- TOD
How does a Transfer on Death Deed Work?
With a TOD deed, the current owner designates one or more persons as beneficiary. The beneficiary automatically becomes the owner of the property when the current owner dies. A beneficiary can be an individual or an organization such as a charity.
What are the Advantages of a Transfer on Death Deed?
- Avoids Probate
A Transfer on Death Deed allows you to avoid probate and pass your property to your family and leave an inheritance while allowing you to have full title rights during your life.
- Maintain homestead advantages
Many states offer asset protection and taxation benefits for a person's principal residence. These benefits may be lost with certain types of ownership transfers, but not with a TOD deed.
- Tax savings
Designating a beneficiary is not an immediate transfer, so no federal gift tax is owed. The beneficiary acquires ownership on the current owner's date of death. If the beneficiary later sells the property, any capital gain will be based upon the value of the property at the original owner's date of death, not the value when the original owner acquired the property.
- Maintain Medicaid eligibility
If a person applying for Medicaid has made a gift of property within a certain period before applying, that gift may delay the receipt of benefits. Upon a Medicaid recipient's death, the government may seek reimbursement from the recipient's probate estate. Fortunately, a TOD deed is not usually considered a gift of the property, nor is the property part of the probate estate subject to reimbursement.
What are the Disadvantages of a Transfer on Death Deed?
** Keep in mind that as long as you’re alive, a Transfer on Death Deed has no impact on (or benefit for) your Beneficiary. He or she has no legal rights to the property until after you pass away. That means you pay the property taxes on it until you die.
An additional downside to a Transfer on Death Deed is it’s not an effective tax beneficial tool. However, the threshold is quite high, and the majority of Beneficiaries do not pay taxes on Transfer on Death Deeds. They will, however, take over any financial obligations on the property once they are owner, such as mortgage payments and property taxes.
In what states is Transfer on Death Deed available?
** You don’t actually have to live in the state to title property with a Transfer on Death Deed - the property just needs to be in one of the following states:
- Alaska
- Arizona
- Arkansas
- California*
- Colorado
- District of Columbia
- Hawaii*
- Illinois
- Indiana
- Kansas
- Maine
- Minnesota
- Missouri
- Montana
- Nebraska
- Nevada
- New Mexico
- North Dakota
- Ohio
- Oklahoma
- Oregon
- South Dakota
- Texas
- Utah
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
* indicates that Deed Queen does not record documents in this state at this time.
FAQ
TIMESHARE DEED
What is a Timeshare Deed?
A Timeshare Deed is a form of timeshare ownership in which the individual legally owns a percentage of their timeshare unit. Most deeded timeshare is transferable, meaning it can be gifted, passed onto children or family, rented or sold at the owner’s discretion.
When is a Timeshare Deed Needed?
Common actions that require a timeshare deed transfer include:
– Adding or removing a spouse’s name on a deed
– Selling timeshare to a third party
– Transferring timeshare into a living trust
– Removing the name of a deceased owner
– Transferring the timeshare to a family member or child
How can Deed Qeen help you?
Transferring timeshare deeds if often a complicated and involved process. Our attorney’s at DeedQueen.com will ensure all title transfers are clear and correct, and that you are protected against illegal charges or unnecessary fees.
FAQ
REAL ESTATE DEED
What is a Real Estate Deed?
Real estate deeds are an essential part of any residential or commercial transaction involving real estate. These legal documents help preserve the chain of title and serve as an official “proof of transfer” that demonstrates the transfer of ownership of an asset (i.e., property) from one person to another.
When is a Real Estate Deed Needed?
Real estate deeds are used when individuals, corporations, LLCs, or other entities seek to claim ownership or transfer ownership of real property. These deeds are important to the transaction process, as they affect ownership interest and rights.
The most common types of real estate deeds are Warranty Deeds and Quitclaim Deeds.
Which Deed is Right for Me?
Unsure? Leave that part to Deed Queen. Once you fill out our online order form, our attorneys will review your information and determine the appropriate deed for your situation.
FAQ
WARRANTY DEED
What is a Warranty Deed?
There are two (2) types of Warranty Deeds: Special Warranty Deed & General Warranty Deed.
Special Warranty Deed – A Special Warranty Deed is different from the General Warranty Deed in that the seller is saying that while they have a clean title to convey to the buyer, they cannot warrant that prior owners did as well. Therefore, if a claim is made to the validity of the title, and the alleged claim occurred prior to the sellers possession of the property, the seller will not defend the buyer.
General Warranty Deed – A General Warranty Deed is the most common deed used to transfer real estate, especially for transactions between unrelated parties. When a General Warranty Deed is used, the Seller or Grantor is warranting that have clear title and that all prior owners had the same. Therefore, the seller is warranting that if a claim is made as to the validity of the title, the seller will defend the buyer, regardless of when the title defect occurred.
When is a Warranty Deed Used?
Warranty deeds are most commonly used in sales contexts that involve the purchase of title insurance. Because warranty deeds allocate risks to the grantor ("seller"), title insurance is typically purchased when issuing these deeds. The title insurance acts to shoulder the risks, thus protecting the buyer and lessening risk on the seller.
Warranty deeds are very rarely used in situations that don’t involve a sales transaction.
Which Deed is Right for Me?
Unsure? Leave that part to Deed Queen. Once you fill out our online Questionnaire form, our attorneys will review your information and determine the appropriate deed for your situation.
FAQ
QUITCLAIM DEED
What is a Quitclaim Deed?
Quitclaim deeds are commonly used between parties that share a high level of trust, such as family members. A quitclaim deed provides a quick and straightforward way to divide or transfer real estate property interest. Quitclaim deeds transfer property interest “as is” and do NOT offer any title warranties.
When is a Quitclaim Deed Used?
These deeds are most common in situations where there is no question about the title. Therefore, quitclaim deeds are appropriate for transfers that do not require a title search or the purchase of title insurance.
Quitclaim Deeds are appropriate for:
– Changing or editing names on an existing deed
– Gifting property to another person or family member
– Giving up interest on a property to a spouse or ex-spouse
– Transferring property to a business subsidiary or other entity
– Transferring property to a trust
– Resolving a “cloud” on a title
What are the Limitations of Quitclaim Deeds?
Quitclaim deeds provide the buyer with the least amount of protection. Unlike a warranty deed, a quitclaim deed does not guarantee the property is free of liens or other encumbrances. Quitclaim deeds do not affect mortgages, meaning the grantor ("seller") remains legally responsible for the mortgage, even after transferring ownership through a quitclaim deed.