How to Use a Transfer on Death Deed in Florida

A Florida transfer on death deed, also known as a lady bird deed, is a legal document that automatically transfers real property to a beneficiary when the owner dies. With a transfer on death deed, you don’t have to go through probate. In Florida, a transfer on death deed is simpler and less expensive than getting a trust.

What Is a Transfer on Death Deed?

A transfer on death deed allows a property owner to bypass probate for their property. With the deed, you keep a life estate in the property, which means you can control and reside in the property during your lifetime. Upon your death, the property will automatically pass to your designated beneficiary. They won’t need to go to court or get an attorney.

The main benefit of a transfer on death deed is that it’s less expensive than getting a trust. While a trust can also avoid probate for your property, a transfer on death deed is a one-time document that does not need to be maintained. The cost of a transfer on death deed is much less compared to a trust.

If you set up a transfer on death deed as a lady bird deed, then you can sell or mortgage the property during your lifetime without needing the consent of the beneficiary. You can even change the deed so that they beneficiary no longer inherits the property.

If it’s not set up as a lady bird deed, you must get their permission before selling or making any changes.

What Makes a Transfer on Death Deed Valid?

Transfer on death deeds must comply with Florida law to be valid. That means they must include the full legal description, parcel identification number, name of the grantor, and name of the death beneficiary. All transfer on death deeds must be signed by two witnesses and notarized.

If a judgment is entered against the current property owner, the judgment will still count as a lien against the property even after the transfer on death deed is executed.

However, homestead properties may be exempt from the judgment lien. You can still keep your homestead exemption when using a transfer on death deed.

The transfer on death deed only transfers title to the property. It does not transfer ownership of the personal contents located inside the property. For those items, you still need a will or living trust.

How to Set Up a Transfer on Death Deed in Florida

To create a transfer on death deed, the property owner must (1) draft the deed, (2) include the full legal description of the property, (3) designate the beneficiary of the property, and (4) record the deed in the county records. The deed must be signed by two witnesses and a notary.