At Borell Law, clients often come in looking for help with estate planning and asset protection. These folks want to be sure their wishes are honored after they're gone. When most people think of estate planning, they think of writing a will, but many are unaware of a ladybird deed and how it works. What is the difference between these two documents? And which one is better?
The honest answer is it depends. Everyone's situation is different, so it's best to understand both options and decide from there.
A Ladybird deed typically bypasses probate, as the property automatically transfers to beneficiaries upon the grantor's death, meaning the courts never get involved. A will is subject to probate, a court-supervised process to validate the will and distribute assets. This process can be time-consuming and often gets complicated, with family members and loved ones disagreeing over what belongs to whom.
With a Ladybird deed, the grantor controls and owns the property during their lifetime. They are free to manage and transfer the assets as they please. The property is automatically passed down once the grantor is no longer alive. No agreements, signatures, or deals need to be made after the fact.
Ladybird deeds typically remain private as property transfers outside of probate do not become a public record until after death, preserving the grantor's privacy and estate details. Writing a will offers the same benefits, the only difference is if someone thinks they got promised something they didn’t get, things could get messy in court. With a ladybird deed, once it goes into effect there is nothing anyone can do to get in the way.
Assets transfer to beneficiaries automatically upon the grantor's death. No probate is needed, and the documentation never passes through a court. This part of the process allows for a swift and easy asset distribution.
Ladybird deeds may offer potential benefits for estate planning and asset protection, minimizing estate taxes and avoiding probate-related expenses. Wills may be subject to estate taxes depending on the estate size and applicable tax laws, potentially leading to higher costs and reduced beneficiary inheritances.
Both options are useful tools for estate planning. The best choice really depends on the person and situation. Some people may want a seamless process where courts don't get involved, and the estate can go directly to the beneficiary without having to take any extra steps. A will can be more expensive, leave a gray area for arguments between loved ones, and have to go through probate in the courts. Borell Law has helped countless clients with ladybird deeds and wills from north Jacksonville to south Miami. Consult with an experienced estate planning or elder law attorney to better understand the complexities of Wills and Ladybird Deeds. There’s no greater peace of mind than ensuring your wishes are carried out the way you intend them to be. To talk to an experienced attorney about estate planning today call 1-800-983-1480.
