Ladybird Deed - Florida

[305rob305]

Hello.
We need help clarifying the following please:

My mother who's single for now owns an apartment. She met someone very recently. She has future plans of marrying this person very soon. She works with attorneys at a firm so she created a ladybird deed (Florida) and recorded it. Upon her death I would takeover the property (has a mortgage). I am her only child. She did this because she wants to make sure I stay with the inherit the property instead of any future late husband. Question is, if she ends up getting married, will the ladybird deed supercede a new husband and avoid any potential legal issues if New husband would want the property if something happened to her? Is there anything other legal document that would help us? She has no money, just this property.

Thank you

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[justblue]

Hello.
We need help clarifying the following please:

My mother who's single for now owns an apartment. She met someone very recently. She has future plans of marrying this person very soon. She works with attorneys at a firm so she created a ladybird deed (Florida) and recorded it. Upon her death I would takeover the property (has a mortgage). I am her only child. She did this because she wants to make sure I stay with the inherit the property instead of any future late husband. Question is, if she ends up getting married, will the ladybird deed supercede a new husband and avoid any potential legal issues if New husband would want the property if something happened to her? Is there anything other legal document that would help us? She has no money, just this property.

Thank you

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Your mother should consult with an estate attorney.

 

[army judge]

Upon her death I would takeover the property (has a mortgage).

The lender holding the note owns the property.

The person ATTEMPTING to buy the property by paying a mortgage payment owns NOTHING until the note has been paid in full.

 

[305rob305]

The lender holding the note owns the property.

The person ATTEMPTING to buy the property by paying a mortgage payment owns NOTHING until the note has been paid in full.

But upon her death the property even though not paid off yet, would transfer to my name which I can sell or keep paying. I would like to keep...

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[army judge]

But upon her death the property even though not paid off yet, would transfer to my name which I can sell or keep paying. I would like to keep...

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If that's what you wish to believe, believe it.

 

[305rob305]

If that's what you wish to believe, believe it.

So you're saying the bank comes in and takes the property away? That doesn't make sense... For that I can easily be added to the title now

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[army judge]

So you're saying the bank comes in and takes the property away? That doesn't make sense... For that I can easily be added to the title now

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A name on deed means very little if a lender holds a mortgage.

A name on a deed NOT also on the note, means even less, if the lender calls the note upon the debtor's death.

It means even less if the survivor can't get approved by the noteholder or the noteholder has no interest in financing the survivor.

 

[305rob305]

A name on deed means very little if a lender holds a mortgage.

A name on a deed NOT also on the note, means even less, if the lender calls the note upon the debtor's death.

It means even less if the survivor can't get approved by the noteholder or the noteholder has no interest in financing the survivor.

I will have to go see an attorney with my mother to get everything in order. If someone has large equity on their mortgaged home there has to be a way the person they choose gets to inherit this equity.


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[army judge]

I will have to go see an attorney with my mother to get everything in order. If someone has large equity on their mortgaged home there has to be a way the person they choose gets to inherit this equity.


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Yes, the equity can be inherited.

The equity has value, however, that value might not be enough to pay off the note.

In addition, if the person named to inherit the property isn't a party to the note, the lender could force a sale of the property to make sure the note is paid.

Under our system of laws, debts aren't inherited upon death.

Property interests can be inherited, but those interests aren't superior to what the deceased owes on the mortgage.

 

[zddoodah]

We need help clarifying the following please:

What phrase?

She works with attorneys at a firm so she created a ladybird deed (Florida) and recorded it.

Did she do this in consultation with the attorneys with whom she works? Or did she do it herself?

She did this because she wants to make sure I stay with the inherit the property instead of any future late husband.

Future late husband?

if she ends up getting married, will the ladybird deed supercede a new husband

I'm not really sure what "supercede [sic] a new husband" might mean.

and avoid any potential legal issues if New husband would want the property if something happened to her?

Doesn't "something happen[] to her" every day? Also, nothing will "avoid any potential legal issues."

I assume the question you're fumbling around trying to ask is the following: Will the deed that your mother recorded be effected to pass title to her apartment to you upon her death, regardless of her marriage to the man in question (or any other man)? Correct? If so, no one who hasn't seen the deed that your mother recorded can answer this question intelligently.

 

[305rob305]

What phrase?



Did she do this in consultation with the attorneys with whom she works? Or did she do it herself?



Future late husband?



I'm not really sure what "supercede [sic] a new husband" might mean.



Doesn't "something happen[] to her" every day? Also, nothing will "avoid any potential legal issues."

I assume the question you're fumbling around trying to ask is the following: Will the deed that your mother recorded be effected to pass title to her apartment to you upon her death, regardless of her marriage to the man in question (or any other man)? Correct? If so, no one who hasn't seen the deed that your mother recorded can answer this question intelligently.

Your assumption in regards to my simple question is correct. Would a ladybird deed created prior to any future marriage safeguard the inheritance to me of a property that my mother owns which still has a mortgage but with substantial equity.


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[flyingron]

Understand that a lady bird deed is revocable. Your mom could change her mind at any time while she is alive. Since it is revocable, if some situation changes (nasty divorce, substantial credit issue), the property may indeed be attached.

Still, it may be the best bet for the two of you, but you should sit down with an attorney.

 

[adjusterjack]

Would a ladybird deed created prior to any future marriage safeguard the inheritance to me of a property that my mother owns which still has a mortgage but with substantial equity.

Probably, as long as it's properly written and recorded and she doesn't revoke it. You can google Florida lady bird deed and learn all you need to know.

The lender holding the note owns the property. The person ATTEMPTING to buy the property by paying a mortgage payment owns NOTHING until the note has been paid in full.

That the bank/lender owns the property is a myth propounded by the intellectually challenged among us who don't have a clue as to what "secured interest" means. The bank/lender doesn't own your home, it has a secured interest which means that it can foreclose if you default. Foreclosure is a costly, time consuming, legal process that the lender must go through before it can take the property. That's a far cry from ownership. If the bank/lender really owned the property it could just evict the borrower for non-payment within a matter of weeks.

In addition, if the person named to inherit the property isn't a party to the note, the lender could force a sale of the property to make sure the note is paid.

Mortgage contracts/notes often have a provision were an intra-family transfer does not activate the "due on sale" clause. In the poster's situation (mother to son) he need only continue to make the payments until he decides to refinance or is allowed to assume the mortgage. And once he is acknowledged by the court as representative of her estate he will have access to the account information.

 

[welkin]

That the bank/lender owns the property is a myth propounded by the intellectually challenged among us who don't have a clue as to what "secured interest" means. The bank/lender doesn't own your home, it has a secured interest which means that it can foreclose if you default. Foreclosure is a costly, time consuming, legal process that the lender must go through before it can take the property.

I would have written the same post if you didn't.

 

[adjusterjack]

Great minds think alike.

 

[army judge]

What is the purpose of a Lady Bird deed?


A "Lady Bird Deed" is a way to transfer property to someone else outside of probate while retaining a life estate in the property. This type of deed got its nickname when President Lyndon B. Johnson used it to convey the property to his wife, Lady Bird Johnson.

Does a Lady Bird deed have to be recorded?
In order for a Transfer on Death Deed to be valid, it must be signed, notarized, and recorded in the property records of the county where the property is located. In contrast, a Lady Bird Deed does not have a recording requirement.

Lady Bird Deed in Florida — All You Need to Know | Alper Law

 

[flyingron]

Sorry ArmyJudge, but the above is just complete nonsense I know what site you took that quote from but it is wrong.

The term "ladybird deed" comes from Attorney Jerome Ira Solkoff, who published various books and articles on legal matters. Solkoff used various takes on famous people in his instructional material to demonstrate the concepts in his instructional materials. In the case of the revocable life estate deed, he used members of the Johnson family. This all happened TEN YEARS after the death of Lyndon Johnson and the concept was not used in any way to deal with the Johnson family estate.

For those contemplating this, while what AJ says about recording is true in Florida, remember that not all states allow such deeds, and in many states, not recording a deed (even lady bird deeds) can find that they are not valid without being timely recorded.