Timeshare Deed & Lady Bird Deed

 

Time Share Deed & Lady Bird Deed

Time Share Deed:

Timeshare is a form of ownership in which more than one party has rights over the use of a property.

What does Timeshare Deed mean:

Timeshares usually apply to different recreational properties, such as condominiums, vacation homes, and vehicles. The parties can hold either ownership or lease rights over the property. Each of them can use the property for a certain period of time or rent it out to somebody else.

How to Transfer a Florida Timeshare Deed?

Florida is one of the most popular timeshare resort areas in the United States. Many Florida vacationers purchase timeshares to have a regular place to stay on each vacation. Because timeshare interests are property, they can be transferred just like other property interests. There are several reasons people transfer Florida timeshares:

Florida is one of the most popular timeshare resort areas in the United States. Many Florida vacationers purchase timeshares to have a regular place to stay on each vacation. Because timeshare interests are property, they can be transferred just like other property interests. There are several reasons people transfer Florida timeshares:

Transfer the timeshare to a living trust for estate planning purposes;

Removing the name of a deceased owner from the timeshare;

Adding a new spouse to the timeshare or removing an ex-spouse from the timeshare;

Transferring the timeshare to children or other family members; or

Selling the timeshare to a third party once it is no longer needed or wanted.

Usually a Florida timeshare can be transferred by Quitclaim Deed or Lady Bird Deed.

Lady Bird Deed:

A lady bird deed is an estate planning tool that enables a Medicaid beneficiary to protect their home as an inheritance from their state's Medicaid Estate Recovery Program.

A lady bird deed goes by a variety of names, including an enhanced life estate deed, lady bird trust, and a transfer on death deed.

Pros and Cons of Lady Bird Deeds:

Avoiding Florida Probate – Lady bird deeds can avoid the need to administer or probate the property upon the death of the owner. The property simply passes to the named beneficiaries outside of the probate process.

Retaining Control – The original owner keeps full control over the property during his or her life, including the ability to change his or her mind about the transfer.

Medicaid Asset Protection – Florida lady bird deeds provide several Medicaid planning benefits. Under current regulations, a transfer by lady bird deed is not a countable transfer for purposes of determining Medicaid eligibility, and the property is not part of the estate that can be recovered by the state after the owner’s death.

Retaining Homestead Exemption – Because a transfer by lady bird deed does not occur until death, signing and recording a lady bird deed does not affect the current owner’s homestead exemption. The significant property tax and asset protection benefits associated with Florida homestead law remain in place.

Saving Taxes – Because of the retained interests held by a property owner that creates a Florida lady bird deed, federal tax law treats the property as though it was held until the owner’s death. This allows the property to qualify for a basis step-up that effectively erases any appreciation that accrued in the property, resulting in substantial income tax savings.

Saving Legal Fees – Although some benefits of Florida lady bird deeds can be accomplished with a living trust, living trusts can be relatively expensive. Lady bird deeds can be just as effective, but cost much less.

Some title insurance companies will not insure lady bird deeds when those deeds are used to exclude a child from inheriting the property while giving the property to his or her siblings. This could create title issues in the future. If an enhanced life estate deed is being used to transfer property to children, it is good practice to include all children on the deed.