Florida Estate Tax: What You Need to Know in 2026

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If someone owns a home in Florida and wants to make things easier for their loved ones after they pass away, there is a powerful planning tool that can accomplish that. It is called the Enhanced Life Estate Deed, more commonly known as a “Ladybird” Deed, and for many Florida homeowners, it truly feels like one of Florida’s best kept secrets. Why? With this Ladybird Deed, your home can skip the probate court process . Let's take a closer to look to see how this special, Florida specific deed can save your loved ones thousands in legal fees and court costs. (Click link for part 1 of Ladybird Deeds here and part 2 of Ladybird Deeds here ) Like the most common type of ownership, fee simple, when a homeowner is alive, a Ladybird Deed allows them to keep complete possession and control of their property. The homeowner with this Ladybird deed can do the same things as a normal owner with their property while they are alive. Live in it, lease it, sell it, take out a home equity line of credit, second mortgage, whatever they choose. The difference with this deed, however, is that the Florida homeowner is now giving themselves a life estate with all of the above-mentioned rights of normal ownership, and in the deed, they are listing who they would like to inherit their property when they pass away. If drafted properly, with the correct language and recorded with the right governmental office, this legal document will be recognized by the Florida government and its counties. Then, the homeowner's wishes of who will receive their home will be honored by the government when this pass away. This applies to ALL Florida homeowners, even if you are not the only owner of the property. You can use a Ladybird deed to transfer the ownership of the portion you own to whomever you want, without a probate court intervening! Probate in Florida can be time-consuming, public, and expensive. Even when there is only one home involved, families often spend thousands of dollars in attorney’s fees and court costs just to transfer title. In addition to the expense, probate can take months to complete, which can create stress and delays during an already difficult time. With a properly drafted Ladybird Deed, the process is dramatically simpler. When the life tenant passes away, the beneficiary typically only needs to obtain a certified copy of the death certificate and record it in the public records of the county where the property is located. Once recorded, the property is officially in the beneficiary’s name. There is no need to open a probate case just to transfer the home. The key part of a ladybird deed is that the life tenant/owner 1) can name whomever they want to own the property after they pass away , and 2) when the life tenant/homeowner passes away, then the property automatically transfers to the beneficiary they named in the deed without going through probate. Those are two main benefits of this deed, however, a nother reason the Ladybird Deed is so powerful in Florida is that the original owner maintains homestead protections. In certain circumstances, it may also help avoid Medicaid estate recovery, which makes it an important planning consideration for some families. That said, a Ladybird Deed is not the right solution for everyone. If you own multiple properties, have a blended family, want structured distributions, or need broader asset protection planning, a revocable trust or more comprehensive estate plan may be more appropriate. The key is making sure the deed is drafted correctly and fits within your overall estate planning goals. For many Florida homeowners, however, the Ladybird Deed offers a simple way to avoid probate and spare loved ones unnecessary expense and delay. When used properly, that simplicity can make all the difference.