Estate Planning

Lady Bird Deeds and stepped up basis (Florida Enhanced Life Estate Deeds)

By David M. Goldman

One of the most common questions people as about Florida Lady Bird Deeds (Florida Enhanced Life Estate Deeds) is whether upon the death of the grantor, the contingent beneficiaries receive a stepped up basis like they would receive it the property was to transfer under a will.

Under Section 2036 of the IRS code, the life estate portion of the Lady Bird Deed causes inclusion in the estate of the decedent. Because of the taxable inclusion in the state there is stepped up basis under the Internal Revenue Code. It is possible that this section of the code might be changed at sometime in the future and you should verify this with your tax professional.

Full post as published by Florida Estate Planning Lawyer Blog on May 26, 2009 (boomark / email).