What Is a Lady Bird Deed? A Simple Way to Transfer Your Home Without Probate
For many retirees and pre-retirees, one of the biggest concerns in estate planning is making sure their home transfers smoothly to the next generation. After spending decades building equity and creating memories, most homeowners want to avoid unnecessary legal costs, delays, and family stress.
That's where a Lady Bird Deed can become a powerful planning tool.
While the name may sound unusual, a Lady Bird Deed—also known as an Enhanced Life Estate Deed—is a legal strategy available in a handful of states, including Florida, that allows homeowners to transfer real estate directly to beneficiaries upon death while avoiding probate.
For many families, it can be one of the simplest and most cost-effective estate planning tools available.
What Is a Lady Bird Deed?
A Lady Bird Deed is a special type of deed that allows a property owner to retain full ownership and control of their property during their lifetime while naming one or more beneficiaries who will automatically inherit the property when the owner passes away.
The key advantage is that the property transfers directly to the named beneficiaries without going through probate court.
In many ways, a Lady Bird Deed functions similarly to a beneficiary designation on a retirement account, life insurance policy, or payable-on-death bank account. The owner maintains control while alive, and the asset passes directly to the named beneficiaries at death.
However, unlike many financial accounts, Florida does not allow traditional Transfer-on-Death deeds for real estate. The Lady Bird Deed fills that gap by providing a similar outcome for real property.
Why Is It Called a Lady Bird Deed?
The name "Lady Bird Deed" has an interesting history. According to legal folklore, an attorney used former President Lyndon B. Johnson and his wife, Lady Bird Johnson, as examples when explaining this estate planning concept. The nickname eventually stuck and became widely used.
While the legal term is Enhanced Life Estate Deed, most people in Florida simply refer to it as a Lady Bird Deed.
How Does a Lady Bird Deed Work?
When you create a Lady Bird Deed, you remain the full owner of the property during your lifetime.
You continue to:
- Live in the home
- Sell the property
- Refinance the mortgage
- Rent the property
- Change beneficiaries
- Maintain complete control
The beneficiaries listed on the deed have no ownership rights while you are alive.
Only upon your death does ownership automatically transfer to the beneficiaries named in the deed.
This distinction is one of the biggest reasons Lady Bird Deeds are so popular among retirees.
Enhanced Life Estate vs. Traditional Life Estate
Many people confuse a traditional life estate with an enhanced life estate.
With a traditional life estate, the property owner may lose some flexibility. If the owner wants to sell the property, the beneficiaries may need to approve the transaction.
An Enhanced Life Estate—which is what a Lady Bird Deed creates—allows the owner to maintain full authority over the property.
The owner can sell, mortgage, transfer, or otherwise manage the property without obtaining permission from future beneficiaries.
This additional flexibility is what makes the Lady Bird Deed so attractive.
The Biggest Benefit: Avoiding Probate
Probate can be time-consuming, expensive, and stressful for surviving family members.
When real estate is owned solely in someone's name without proper planning, the property often becomes part of the probate estate.
Probate can involve:
- Attorney fees
- Court costs
- Administrative delays
- Public records
- Family disagreements
A properly executed Lady Bird Deed allows the property to bypass probate entirely.
Upon the owner's death, ownership transfers directly to the named beneficiaries according to the deed.
This can save both time and money while simplifying the inheritance process for loved ones.
Why Not Just Add Your Children to the Deed?
One of the most common questions homeowners ask is:
"Why don't I simply add my children to the deed now?"
While this may sound simple, it can create several unintended problems.
Potential Gift Tax Issues
Adding a child as a co-owner can be considered a gift of ownership interest.
Depending on the property's value, additional tax reporting requirements may apply.
Loss of Control
Once a child becomes a legal owner, you may lose some flexibility regarding future decisions involving the property.
Exposure to Children's Creditors
If your child experiences financial difficulties, lawsuits, bankruptcy, divorce, or creditor claims, their ownership interest could become vulnerable.
That could potentially create complications involving your property.
Family Conflict
Adding one child to a deed may unintentionally create tension among siblings who are not included.
A Lady Bird Deed generally avoids these concerns because beneficiaries receive ownership only after the owner's death.
Can You Name Multiple Beneficiaries?
Yes.
A homeowner can name multiple children or beneficiaries on a Lady Bird Deed.
For example, a parent could name three children to inherit the property equally.
However, this is where careful planning becomes important.
After the parent's death, all beneficiaries will typically become owners together. They must then decide what happens next.
Questions may arise such as:
- Should the property be sold?
- Should one child keep the home?
- How will expenses be handled?
- What if one beneficiary wants cash while another wants to keep the property?
Families with multiple beneficiaries should carefully consider potential future conflicts before choosing this approach.
When a Trust May Be Better Than a Lady Bird Deed
A Lady Bird Deed can be an excellent tool, but it is not always the ideal solution.
In more complex family situations, a revocable living trust may provide greater flexibility and control.
A trust can specify:
- Who manages the property
- Whether the property should be sold
- How proceeds should be divided
- When beneficiaries receive assets
- Special provisions for family circumstances
For example, if one child lives in the home while another child lives elsewhere, a trust can provide clear instructions that reduce the likelihood of future disputes.
While trusts typically cost more to establish, they often provide more customization and family harmony when circumstances are complex.
Medicaid and Homestead Benefits in Florida
Another reason Lady Bird Deeds are frequently discussed in Florida estate planning involves Medicaid and homestead considerations.
Because the homeowner retains ownership and control during life, Florida homestead protections generally remain intact.
Additionally, because the property transfers outside of probate, a Lady Bird Deed may provide certain advantages when evaluating Medicaid estate recovery issues.
Medicaid rules can be highly complex and vary by situation, so homeowners should always seek qualified legal advice regarding Medicaid planning.
Do Lady Bird Deeds Protect Assets From Creditors?
Not necessarily.
Because the homeowner retains full ownership and control during life, creditors may still have access to the property to satisfy valid claims against the owner.
A Lady Bird Deed is primarily an estate planning tool, not an asset protection strategy.
Its primary purpose is to facilitate probate avoidance and streamline the transfer of property after death.
How Much Does a Lady Bird Deed Cost?
One reason these deeds have become so popular is affordability.
Compared to creating a comprehensive trust-based estate plan, a Lady Bird Deed can often be established at a relatively modest cost.
However, homeowners should remember that their home may be their largest asset.
Even if the process appears straightforward, it is often worthwhile to work with an experienced attorney to ensure the deed is drafted, executed, witnessed, notarized, and recorded properly.
Common Mistakes to Avoid
- Assuming Lady Bird Deeds are available in every state
- Adding children directly to a deed without understanding the consequences
- Failing to properly execute the document
- Not recording the deed with the appropriate local government office
- Naming beneficiaries without considering future family dynamics
- Assuming a Lady Bird Deed replaces all estate planning needs
Is a Lady Bird Deed Right for You?
A Lady Bird Deed may be worth considering if:
- You own real estate in a state where it is available
- You want to avoid probate
- You want to maintain full control of your property during life
- You have straightforward estate planning goals
- You want a cost-effective way to transfer a home to beneficiaries
However, individuals with blended families, complex estates, special-needs beneficiaries, family business interests, or multiple properties may benefit from more comprehensive planning strategies.
The right approach depends on your overall retirement, estate, and legacy goals.
Final Thoughts
For many Florida homeowners, a Lady Bird Deed can be a remarkably effective estate planning tool.
It allows you to maintain complete control of your property while creating a direct path for transferring your home to the next generation without probate.
Like any estate planning strategy, it should be evaluated as part of a broader retirement and legacy plan.
The goal isn't simply transferring assets. It's making life easier for the people you care about most while protecting the wealth you've spent a lifetime building.
Frequently Asked Questions About Lady Bird Deeds
What is a Lady Bird Deed?
A Lady Bird Deed, also known as an Enhanced Life Estate Deed, allows a property owner to transfer real estate directly to beneficiaries upon death while retaining full ownership and control during life.
Does a Lady Bird Deed avoid probate?
Yes. One of the primary benefits of a Lady Bird Deed is that the property transfers directly to named beneficiaries without going through probate.
Can I sell my house if I have a Lady Bird Deed?
Yes. The homeowner retains full authority to sell, refinance, mortgage, or transfer the property during their lifetime.
Can I change the beneficiaries later?
Generally, yes. Because the homeowner maintains control, beneficiary designations can typically be changed while the owner is alive.
Are Lady Bird Deeds available in every state?
No. Lady Bird Deeds are recognized in only a limited number of states, including Florida. Availability depends on state law.
Is a trust better than a Lady Bird Deed?
Not necessarily. A trust may be better for complex family situations or larger estates, while a Lady Bird Deed may be sufficient for homeowners seeking a simple probate-avoidance solution.
Can I name multiple children as beneficiaries?
Yes. However, families should carefully consider how future ownership decisions will be handled if multiple beneficiaries inherit the property together.
Daniel Wendol
Item #1
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hello everyone welcome to another dolphin Financial radio show where we talk weekly about different Financial topics particularly focused on retirement planning but today’s topic is going to be about Ladybird Deeds have you heard of these a lot of people in Florida have very popular here and it’s a show that I’ve been wanting to do for years and I finally got a chance to do it and when I say got a chance to do it I mean I wanted to get someone with EXP experience and info and expertise about
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these types of things ladybird deeds and how they can be used to transfer your home to the Next Generation and who am I going to bring on to that there he is Steve Nino thanks for joining us again we’ve been talking about enhanced planning topics and I mentioned to you that ladybird deed is a very popular topic to my clients I thought well why not we do a show on it and you agreed yep that sounds great welcome to the show thank you thank you Dan you’re one of the few people that I know
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that can get as excited as I am to talk about Ladybird Deeds right y so the listeners are in for a treat and the viewers um Steve why don’t you to start us off by explaining what is a ladybird deed okay a ladybird deed is actually a legal form of ownership and it’s a way of transferring property basically without the probate process so it bypasses any property that is in title of the ladybird deed will stay out of the probate process and pass directly to the remainder beneficiaries listed in the in the deed
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document so we’ve did a show we’ve done several shows I’ll put the show up here for the viewers on YouTube to watch it was talking about how titling assets is a great way to avoid a lot of headaches expense keep it private by just naming people as a beneficiary and so this is a way to do that by naming someone on a deed and I say it’s popular in Florida because it’s not available in every state I looked it up recently just to give you an idea I didn’t there was about five or six states that ladybird
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Deeds are valid of being one of them Texas Michigan so if you’re watching this and you’re and you’re wondering hey is this available in my state take a look and make sure you look it up because not doesn’t apply everywhere but um also known as Enhanced Life Estate Deeds so what is that what’s an Enhanced Life Estate Deed that’s a real good question and one that’s important to know um the answer to an Enhanced Life Estate is different from a typical life
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estate when I if you set up a life estate for someone generally what that means is the granter the person who established that can live on the land or live in the house whatever’s in that life estate they can use it while they’re alive but they are subject to making sure it’s still there so that the remainder people the beneficiaries can then take over and have that a life estate uh really requires if I set up a life estate and I’m living in my house I put the house in there and then I want
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to sell the house I have to check with the beneficiaries first whereas an Enhanced Life Estate allows the granter in my case my example me to sell you know mortgage move do whatever I want with that house without the beneficiaries the remainder beneficiaries reigning in on that so it is true control over whatever you put in an Enhanced Life Estate Deed and also it is pretty much synonymous with Lady Bird deed so the terms can be mixed and kind of interchanged ladybird deed is an Enhanced Life Estate so a life estate
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you would lose some control but an Enhanced Life Estate you still maintain some control correct and there’s only a few states that allow Enhanced Life Estate Deeds or ladybird deeds and Florida is one of them excellent so I mentioned the key benefit of using a life a ladybird deed is to avoid probate because correct me if I’m wrong if I name someone on the deed ladybird deed and I pass away and let’s say originally it was my wife and I and we both pass away um we named each other but I’m now
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single or Widow widower and now I have a ladybird deed and I name my three children if I pass away that does not go through the probate process even though um they my will or my other assets are given away differently um a deed is a contract type of um of legal document that we talked about in that show that’s right that’s right Dan you nailed it in our previous show we talked about the different types of ownership and contract meaning it has a beneficiary listed so that will bypass the probate
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process at that time we talked about things like life insurance annuities and IRAs with a beneficiary designation on it well think of it this way the ladybird deed has a beneficiary on it so an Ence it’s almost like a contract but I think the big distinguishing feature is that life that Enhanced Life Estate which allows the person who puts the house or whatever it is into this ladybird deed they can still sell it and do whatever they want with it without being subject to uh approval by the remainder beneficiaries the people
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inheriting after they’re gone now if I have a account and I have transfer on death or payable on death that is bypasses probate because it’s a name beneficiary how is that different than just having a to transferring death on a house can you on a deed is that is this the same thing um Dan that’s a real good question to is the same thing really in essence the problem is Florida and a few states do not allow transfer on death arrangements as we see them in many other states and so that’s where the Genesis or the
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beginning of these ladybird Deeds came into existence they basically are a you know a type of deed with a transfer on death embedded inside of them so you don’t get to in Florida but you can get a ladybird deed or a Enhanced Life Estate excellent so those watching may not be in Florida say oh I’ll just do a transfer on death with my deed and that that’s going to work but in Florida or certain other states not so fast you need to do it in this procedure and it may be functioning the same way
00:07:38
just different uh procedures as it were um quick question though and this is what I get a lot on Steve why wouldn’t I just add my child to the deed While I’m Alive so that it’s it I don’t even have to worry about a lady bird deed they’re on it so it’s a joint with rights of survivorship what’s the harm and doing it that way well generally when you set up a joint ownership arrangement with a child during your lifetime you’re going to have some gifting um scenarios I mean if let’s
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just say I have a piece of property that’s worth $100,000 and then I set up a joint account at the titling office with my son well my son now owns 50% so we have to take $50,000 and record that as a gift that’s half of the 100,000 it is and there’s some gifting there’s also some losing control over it um if he gets in trouble or something their creditors can come after his share of that which would be half of your house if your son got in a car accident precisely he’s half on the deed and
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there’s Equity there precisely okay so this is a word of warning to people hey don’t go down the path of just putting your son or daughter on the deed while you’re alive to avoid this why not just do a ladybird deed it’s much cleaner and you might have multiple children so wouldn’t it be better to put multiple children on a ladybird deed versus just one of them on the deed now um you don’t lose control and that’s a key part of Lady Bird deed if I recall is you still live there it’s
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still your house still your property you maintain ownership and rights it’s not until you die that the lady bird deed actually takes exactly and I think there’s an important point in that that may maybe we should uncover is that um because of that control and because you have all those that life that Enhanced Life Estate you as Grant or person living on the property have are subject to creditors and things like that that money or whatever it is house or property that’s inside the ladybird deed can be accessed
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by creditors there’s really no asset protection feature to it however for the remainder they are typically uh not going to have any problem with creditors and things like that because technically they don’t take ownership until the granter passes away until they die excellent so you may contain control which means you’re still liable for everything that goes with it but by eliminating the putting them on the deed while you’re alive and just using a ladybird deed it only goes to them when
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you pass away so they don’t have any rights or ability to do anything or credit or any linkage to them until you pass away which is a good way to keep control right and then pass it on it’s just basically you’re naming a beneficiary on your house in Florida using a ladybird deed right um one point I want to make that’s specific to ladybird Deeds which um I don’t know if this is for all Enhanced Life Estates is in in Florida we have a homestead exemption for taxes and legal issues and also if
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someone’s trying to uh qualify for government Aid in the form of State Medicaid um they their assets are looked at um there’s a five-year look back period and such um that those don’t apply in Florida with a ladybird deed meaning you could still have your tax exemption and your Medicaid cred uh qualification with a ladybird deed because you actually haven’t um given it to anybody yet technically that’s right and Dan there’s another element to that whole thing that is a little bit
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positive from a Medicaid planning purposes is that because the lady bird deed does bypass the probate process it doesn’t end up being determined by a court as to where it should go that can be sometimes keep it away from the counting towards Medicaid you know the what your assets and what your income is because it’s not part of the probate state where they typically look so it can it can be a win win it can be a win during your lifetime by maintaining the homestead exemption in Florida and it
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can be a win when it passes to your remainder beneficiaries outside of the probate process and keeps it out of that view so to speak so to summarize on the benefits you just mentioned that Medicaid estate recovery is one so it doesn’t go through probate so it wouldn’t go through Medicaid estate recovery if you know hey you spent a lot now we’re going to claw back some assets precisely um avoids probate that was the first one I said taxes you touched upon this so if you give the property while
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you’re alive to someone there may be some gift uh that’s gifting right so that may be some estate taxes as well how does a lady bird deed uh deal with the taxation well when you name as opposed to making a gift and then you know let’s just be give a simple example Dan what if I had that $100,000 piece of property and I made a gift I said you can have half of it Dan well then you’ve just inherited you’ve gotten $50,000 from me so I would have to record that at year end I’d
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either have to write that down on my uh form my tax forms to say I’m applying this against my lifetime gifting or I would pay taxes on gift taxes on the 50,000 which I wouldn’t like to do so there’s just that it’s more of an administrative thing to be cognizant of is that if you uh you know give money give assets or split assets during your lifetime with other people there is gift consequences and then not to mention the uh loss of control and the concern over creditors and things like
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that if you and I because I know and you’re a troublemaker and if I gave you half of that I’m just kidding well also you know your children may be in a situation when they don’t want that or you may have significant assets and you don’t want to do that at this point you want to wait right um but yeah um but it brings up another point and on here I say expensive legal trust creation what about a living trust versus a ladybird deed you know I difference here yeah I oftentimes just say if it’s just the
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house you’re concerned about then um ladybird deed works fine um if you have more complexity if there’s other assets other things in your maybe you have a boat maybe have a Shore House beach house um then you might want to talk about a living trust living trust is going to be a little more expensive to set up ladybird Deeds I think go for around 350 for the whole kitten and Kaboodle um whereas a living trust can be in the thousands or more so uh kind of you know it goes up with the complexity whether
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or not you’re going to need a living trust and if you have a living trust we said and we did a show on trust I’ll put that up here do you need a living trust do I need a trust what are they what are they good for and if you have one you got to remember the key thing is don’t forget to put your assets in it so you could have a trust for and not put your house in it and just cuz you forget but if you want you can not have a trust and have the house go into the ladybird deed scenario where um you don’t necessarily
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need a trust you don’t necessarily even need a lawyer to have a ladybird deed you do need to file it with the county with the local state government you can’t just name it and put it on your drawer it’s to be registered somewhere um so that’s a mistake that people might make um but in general though if you just said if all you have is your IRA with a name beneficiary you have a banking account with a transfer on death you have a home with a ladybird deed and maybe some other assets maybe your car
00:16:27
do you really need to get a trust and is a ladybird deed a really powerful way for those that don’t have a lot to avoid having complicated legal issues in an inexpensive way you know Dan I think I’d say yes to what you just described and here are a couple of things that people should be aware of there are some administrative things it’s not just going to magically happen if I say I’m going to create a ladybird deed first of all in the actual execution or the creation of a
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ladybird deed you need two witnesses and you need a notary so uh you could do this you could get a form offline I’m sure there’s plenty of sites that have a lady ladybird deed form however if you’re one like me who likes to dot their eyes and cross their tees and make sure that it’s absolutely being done in the right way I think the money spend for a law firm to help you out and make sure it’s done correctly is well worth it and just to answer questions while you’re going through the process
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because exactly it’s probably your biggest asset dollar for dollar exactly so you wanted to do it correctly and this might be a good way to avoid expensive trust creation but it doesn’t mean you have to avoid talking to a lawyer to help you with it at all right one thing I want to talk about which is a potential issue I want to get your take on it this is something that identified when I was thinking about it in my situation because I have three older brothers um if my father um puts
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the house in a ladybird deed in Florida and he lists us all equally um multiple beneficiaries which he could do with a you can name multiple beneficiaries um that is different than if he had a a trust and named one trustee to make the decisions pick one of the four Sons to make the decisions with a ladybird deed and he names us equally now we have a decision to make when my father passes away and there’s four of us deciding what to do with this house is that an issue you know it all depends on the family Dan you’re right
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that that’s something you probably want to nip at the bud and avoid that concern so if that is a concern and you have many beneficiaries in a family well then you might want to be as clear as possible and that’s probably by using a trust a living trust or a revocable trust you can actually spell out that you know the kids are to sell the house and split the house proceeds or one child gets the house the other child gets some other assets to equalize so there’s ways with trusts that you can
00:19:21
create Harmony as opposed to you’re right with a ladybird trust you leave it to them and there’s really no um delineation or spelling out of how that’s going to be split up or distributed you hit on that word every show you say the word harmony because you know it’s a biggie um if you have three children or say two children one of them which is living with you taking care of you and you ladybird deed 50/50 um you’re going to force those children to make a decision as to hey
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I’m living here I want to stay here but if the other daughter says uh no uh we’re selling that I need the cash that’s going to be a fight could be avoided with an TR with a trust living trust might be a better way so I that I agree I think that’s a good point let’s conclude here um very simplistic I mean it’s one document it’s inexpensive you know you could do it yourself or you can hire a lawyer to just kind of oversee it couple hundred bucks um and it’s could pass your
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biggest asset your home onto the Next Generation very clearly and without any drama right but it doesn’t have it does have some flaws it’s not available in all states so make sure you double check to make sure this is even something Irrelevant for you but it’s worth considering and I think more and more people at least with my clients who ask about it now I’m going to send them here to watch this show I think it might be a really powerful way to help people out particularly where it’s valid in the
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states that it’s valid correct any final thoughts on ladybird Deeds do you know where it got its name how about that that’s an interesting I I you did go for it Dan yeah I did I because I thought I didn’t know how to spell it was it lady bird whatever it turns out some lawyer I forget his name in I think in Florida was doing um educational semin or content on the concept of this Enhanced Life Estate and he was using Lynden Johnson and his wife ladybird as the example and the name
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just stuck sure so that’s now that could be folklore I don’t have the you know the truth on that but I think that’s what it is that’s good that’s good I yeah I hadn’t I hadn’t really dug on to that one but U I’m glad you did so what do you think Steve this is ladybird thumbs up on using it or absolutely one of these you know do yourself ideas that we should stay away from no I think this one’s uh pretty darn good it’s because Florida doesn’t have the transfer on death which most of
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the states are using so basically you’re using the next best thing if not better the Enhanced Life Estate or ladybird deed and so yeah I like it Steve as always thank you for your time this is excellent show we’ll have more on new topics listeners if you want to talk about a legal question that you was burning you give us a call we’ll maybe incorporate it and get Steve’s opinion so thanks everyone enjoy the rest of the week all matters discussed in today’s show for informational
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purposes only this show is not investment advice Dan Wendol nor Dolphin Financial Group are affiliated or endorsed by any government agency investment advisory services are offered through Dolphin while Management Inc a registered investment advisor in the State of Florida Insurance products and services are offered through Dolphin Insurance Inc Dolphin Wealth Management Inc and Dolphin Insurance Inc are affiliated companies doing businesses as Dolphin Financial Group you should talk to someone at Dolphin Financial group
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before implementing any of these strategies or ideas