Life Estate Information

Some time ago I was placed by a relative into a Florida Life Estate, that she the Remainderman well knew! I had no way of affording! The document arrived, as just a letter to me, from an attorney, outlining all the things I was now responsible for! I have researched Life estates for over a year now, and and can't understand how something as serious as this, can be placed on someone! without my Signature being required! Is this Legal?

You've wasted a year "researching" life estates.

You should take the documents to an estate attorney to figure out how to get out from under it.

Johninflorida said:

Some time ago I was placed by a relative into a Florida Life Estate, that she the Remainderman well knew! I had no way of affording! The document arrived, as just a letter to me, from an attorney, outlining all the things I was now responsible for! I have researched Life estates for over a year now, and and can't understand how something as serious as this, can be placed on someone! without my Signature being required! Is this Legal?

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You can't become the recipient of a life estate ABSENT your consent.

You agreed to receiving it, before you be became encumbered under it!!!!!


The Florida Life Estate Statute



Life estate is a method of transferring property; a major benefit is that it occurs outside of the probate process. This in itself is a tremendous advantage as probate can be drawn out, not to mention emotionally wrought and even contentious for your beneficiaries.


With a life estate, you can split the ownership of real property between one or more "life tenants" and one or more "remaindermen."


We'll clarify:

Life Tenant. This is one or more people to whom you will bequeath ownership of a property during their lifetimes. In other words, they have the right to live there rent-free until their death. They are responsible for maintaining the property and also owe a duty to avoid "wasting" the property. That is, they cannot intentionally destroy or damage it (e.g. by failing to maintain it properly). If the property produces income, they also have the right to that income during their lifetime. The life tenant cannot, however, sell, transfer, or leave the property in a will. This is why they are called a life tenant, and not an owner.



Remainderman. After the life tenant(s) passes, the remainderman becomes the full owner of the property. And again, because this happens outside of probate, they can assume ownership and occupancy, if they wish, without inconvenience, extraneous cost, or delay. Once the property is transferred to the remainderman, they can do anything they would be able to do had they purchased it outright.


Life estates may also be used when the property owner names another party as a life tenant. They won't occupy the property, but they do own it and will have full occupancy rights and freedom of ownership upon the life tenant's death.



At this point, you may be wondering exactly who owns the property in a life estate? A life estate creates a sort of joint ownership. For example, if you want to live in your home and leave it to your daughter, you might make yourself a life tenant. You continue to live in your house, pay insurance and property taxes, and vacuum the carpets! But you don't have full control over the house. If you want to make big changes or take out a mortgage, for instance, you'll need approval from your remainderman (in our example, this is your daughter).



Also – and this is important – if you have a change of heart, you cannot revoke the life estate without consent from the remainderman. This is a decision that is certainly worth putting much time and thought into.


After death, your house title is passed on immediately to your daughter. All she has to do is file the death certificate, and she has full rights of ownership. She can live there, sell it, or leave it to an heir in her own will.


As you can see, there are major benefits, including an efficient transfer of ownership and avoidance of the lengthy probate process.

But there are risks: if you change your mind, you need for your remainderman to agree to revoke the life estate.

In some cases, this can get messy.



Traditional Life Estate Deed vs. a Florida Enhanced Life Estate Deed



Life estates can be problematic: one big issue is if the remainderman passes away before the life tenant. Then the property would need to go through probate. If the owner has no will, then it will be passed down according to established rules of intestate succession (i.e. the probate court distributes it according to Florida law). In this case, your property may not be passed to the party or parties you wish. And, of course, a big issue for many is that they do not retain full control of the property.



This is where an enhanced life estate deed becomes important. You can add language that addresses these situations. For example, you can stipulate that you will be able to convey or mortgage the property without remainderman approval. This gives you a great deal more flexibility. Another example: you can address the concern of your remainderman dying before you through this type of enhanced deed.



Ladybird Deeds and Medicaid



In Florida, enhanced life estate deeds are also known as "ladybird deeds." They are important if you need Medicaid. To qualify, you must pass a means and assets test. In short: if you have too many assets, you cannot receive the financial assistance you need for medical care and, if necessary, nursing home care.



Households over a certain value are counted; you can use a ladybird deed to transfer property (or even a portion) to a trust or individual. The remaining assets will then be distributed upon death.



Florida life estate statutes are complex, and there are a variety of considerations to keep in mind. It's helpful to have the advice and guidance of a lawyer who specializes in estate planning, asset protection, and Medicaid planning. In planning your estate, you are taking control of your life and your death. Our goal is to ensure that your wishes are honored and upheld by the law.

How Do You Dissolve or Change a Life Estate in Florida?

A common scenario for a life estate is parents making themselves the life estate holders while their adult children are the remaindermen. In this scenario, the parents can continue living in their home while ensuring that their children will eventually get the property without having to go through the probate process.

This is because Florida probate rules apply to assets that are titled in the decedent's name upon their death; since a life estate automatically results in the remainderman becoming the owner of the property when the life estate holder passes, the subject property does not have to go through probate.

Of course, a lot can happen in the years or decades following the execution of a life estate deed. With a standard life estate deed, if circumstances change, the property's original owner—who, again, is often also the life estate holder or life tenant—can reverse or change the life estate deed only with the approval of the remainderman. Hence, if one or all of the remaindermen refuses to sign the new deed or asks for compensation to do so, changing the life estate may become a herculean task.

However, with an enhanced life estate deed (or "Lady Bird" Deed), the approval of the remaindermen is not needed and the life estate holder is free to cancel, reverse, or change the life estate at his or her own will.

Either way, both circumstances involve drafting a new deed, which should be done with the assistance of a Florida licensed attorney.

Thank You all for your Replies! I am fully aware of what the Life Estate Is from all my research, But all I received was a letter from a local South Florida attorney, stating my Relative who was my Fathers wife and Heir, was Putting me into a Life Estate! The letter went on to describe what payments I was now responsible for, which is everything as if I were the Owner! The Letter even advised me to make these payments to avoid Foreclosure! In conclusion there is no doubt? My Signature would have had to been on a Life Estate Document?

adjusterjack said:

You've wasted a year "researching" life estates.

You should take the documents to an estate attorney to figure out how to get out from under it.

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I am not in a good financial position! and attorneys down here, want thousands to do anything!

Johninflorida said:

My Signature would have had to been on a Life Estate Document?

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Then go to the county's registrar of deeds website and find the Life Estate deed and print it out. Or go to registrar's office and they will help you find it, if it exists.

Then, not your signature? Go to the police and report it.

There is no reason to think I have been defrauded! The deed has remained in my Fathers name as it always was! but in my research I have found that is not unusual! There is no Record of this Life Estate Filed with Clerk, Quote Yes, life estate deeds are filed in public records in Florida, But filing a life estate in public records in Florida is not a requirement, but it is considered a standard practice. My main concern is the Signature! I never gave! This attorney seems to be extremely competent, as she even informed me a Codicil I had from my Father was Not Legal! So I find it hard to believe she would have just forgotten to ask for my Signature! ...I have a bad feeling my Signature was NOT REQUIRED!

Johninflorida said:

There is no reason to think I have been defrauded! The deed has remained in my Fathers name as it always was! but in my research I have found that is not unusual! However nothing has ever been filed concerning this Life estate with the County clerk here! and that puzzles me! Quote Yes, life estate deeds are filed in public records in Florida. But my main concern is the Signature! I never gave! This attorney seems to be extremely competent, as she informed me a Codicil I had from my Father was Not Legal! So I find it hard to believe she would have just forgotten to ask for my Signature, to complete this life estate!

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So now we find out about new facts (a codicil) that may or may not have bearing on your question.

You were given a Life Estate by a relative with your knowledge, if I remember your post. You say you never signed the Life Estate deed and that you don't think you have been defrauded. That leads me to believe that you somehow did know about the Life Estate and accepted it until you found out what you had to pay for the upkeep of the property (maintenance, property taxes, insurance). Now you want to cancel the Estate and this thing about you not signing the deed is just a red herring.

Is that about correct.

WHILE YOU ARE MAKING ALL OF THESE ASSUMPTIONS! My Father originally gave me a Codicil stating that His estate, was to pay for this unit, after his death! That codicil I found was not legally witnessed! The only reason I tried to make payments was My Mother was here at the apartment in Hospice! and I feared a sudden eviction, with my Dying Mother! THAT IS WHY I STARTING PAYING THE BILLS! AND YES OF COURSE! I KNEW I RECEIVED A LETTER STATING I WAS NOW IN A LIFE ESTATE! But I'm trying to find out whether or not My Not Signing means anything! AND THAT IS ALL I AM TRYING TO FIND OUT HERE! I have never been able to keep up the high payments of this unit! and I expect to be evicted at some point! but I want to know if this Life estate has been placed on me Illegally! Is that Clear!

Johninflorida said:

I am fully aware of what the Life Estate Is from all my research.

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Based ENTIRELY upon your initial correspondence regarding "life estates", I'm convinced that you've convinced yourself the above sentence is true.

However, based upon your enquiries and responses to those responders attempting to assist you, you're burning daylight by trying to resolve this very important matter in your current life, utilizing contributions from kindly, helpful strangers.

I suggest you engage the services of an outstanding and highly regarded LICENSED ATTORNEY in Florida. Yes, it will cost you some of your precious "moola". Doing otherwise will be even more, not less, expensive!!!!

Johninflorida said:

My Father originally gave me a Codicil stating that His estate, was to pay for this unit, after his death! That codicil I found was not legally witnessed!

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What makes you believe a Codicil has suddenly become a Will?

In reality, a Codicil is merely a supplement or appendix to a will.

codicil /kŏd′ə-sĭl/

noun

1. A supplement or appendix to a will.
2. A supplement or appendix.
3. A clause added to a will.
4. An addition or supplement that explains, modifies, or revokes a will or part of one.
5. A supplement to a will; a testamentary instrument intended to alter an already executed will.

The American Heritage® Dictionary of the English Language, 5th Edition

Thank You all for the Help!

Johninflorida said:

I was placed by a relative into a Florida Life Estate, that she the Remainderman well knew!

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You're going to explain better what this means. It is not possible for a person to be "placed into a life estate." I suspect what you might mean is that a relative ("O") executed a deed that gave you a life estate, with someone else being the remainderman. However, that's not at all clear, and the part of this sentence after the word "that" makes no sense.

Johninflorida said:

Is this Legal?

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You are free to reject whatever grant of property you have received. It would be advisable to consult with a local attorney to ensure you do it correctly.

Johninflorida said:

all I received was a letter from a local South Florida attorney, stating my Relative who was my Fathers wife and Heir, was Putting me into a Life Estate!

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Again...this makes no sense. One person cannot "put" another person "into a life estate." What exactly does this letter say (with names redacted, please)? Also, if all you received is a letter, it doesn't mean anything. A life estate can only be created by a deed.

Johninflorida said:

There is no Record of this Life Estate Filed with Clerk

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Then it doesn't exist.

I don't know if English isn't your first language, but your posts are quite unclear. You need the assistance of a local attorney.