As with most things of a legal nature, requesting legal advice on a public forum like this you will get a variety of responses. In my view, one should consult an attorney who specializes in estates in a matter as important as this. That way...

Yes, for most cases, property received from a trust will receive a stepped cost basis.

That's a given, but I for one enjoy discussions like this with well meaning people. Plus it puts you in a better position to know what questions to ask.

Michele L. Foltz
Paralegal
Millhorn & Shanawany Law Firm
13696 US Highway 441, Suite 200
The Villages, Florida 32159
352-205-4408 (Direct line)
352-205-4995 (Office)

Is this a referral? Please tell us more.

I would be concerned in joint if both died say in a car accident. While it might work , I don't think joint is the best option

Right on!
"The general rule is that assets held in trust for beneficiaries will receive the stepped up tax basis if the trust assets are included in the estate of the decedent. This generally includes trusts that are revocable until death—they would be part of the taxable estate and receive a step up."

I agree with consulting an attorney. However, I would ask the attorney some hard questions about the need for a trust. I would also ask about future legal fees if you buy another house or make other financial changes that will require an update to the trust. A lot of people who go to an attorney end up buying a trust when they really don't need one. There are lots of free seminars with free dinners on how to avoid probate by putting all of your assets into a trust. They make it sound like probate is a complicated process that needs to be avoided at all costs. But, I have handled two probates myself, and it was not a big deal. And, there are less expensive ways to avoid probate without a trust. If you do buy a trust, I would insist on a fixed price from the attorney, not an hourly rate.

I would confirm this with another attorney.

Without any special purposes I prefer this

"The term tenancy by the entirety refers to a form of shared property ownership that is reserved only for married couples. ... This form of legal ownership creates a right of survivorship so if one spouse dies, the surviving spouse automatically receives the full title of the property"

I think the term enhanced life estate deed is what is used in Fl for the Lady Bird. Thank you.

As pointed out in the reference the ownership of the property is split between the original owner for life and the beneficiary is entitled to the property after the owner dies. Thus if the owner wants to sell the property the owner needs to get the beneficiary's rights back.

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Not exactly. I consulted with McLin Burnsed about converting my deed to a lady bird deed. In Florida, with a lady bird deed, you have total control over the property during your lifetime, including the ability to sell the property anytime you want. However, there are a few title companies who will want you to get a signature from the lady bird beneficiary when you sell the property, even though it is not required by state law. But most title companies do not require the beneficiary approval. It is just a matter of hiring a title company that doesn't require the signature, if that is an issue. So, I am considering getting a lady bird deed to totalling eliminate probate for my estate. The cost to prepare a lady bird deed is about $200.

Certainly a lot to think about
 

Great discussion. I really appreciate everyone’s input. Thinking about the lady bird deed vs. a living trust.

The closing agent was one from The Villages since I had a new home built. Don't remember her name. I was still able to get a homestead exemption.

I agree the problem may not be the law but the title company's procedures. That is why you need an attorney that knows this area of the law for the state you are in.