Can Someone With a Life Estate Rent Out the Property in Florida?

Traditional life estate

With a traditional life estate, the life tenant has the right to use the property for life, including living there or renting it and keeping the rent. The remaindermen own the future interest. The life tenant generally pays property taxes, insurance and ordinary repairs, and can't damage or waste the property.

Because the life tenant's rights end at death, a lease signed only by the life tenant generally ends then too, unless the remaindermen join in or agree to honor it. Selling or mortgaging the property usually requires the remaindermen's signatures.

Enhanced life estate (Lady Bird deed)

With a Lady Bird deed, the owner reserves the power to sell, mortgage, lease and change beneficiaries without anyone's consent. That flexibility is why most Florida estate planning deeds today use an enhanced life estate rather than a traditional one.

Homestead and property taxes

Renting out a Florida homestead can be treated as abandonment of the homestead exemption. Under § 196.061, renting the entire dwelling for more than 30 days per calendar year for two consecutive years generally ends the exemption, which can also remove the Save Our Homes cap.

Medicaid and income

Rental income counts as the life tenant's income, which can matter for Medicaid or VA benefits.

If you hold a traditional life estate and want more flexibility, or you're deciding how to deed your home, see Lady Bird deed or revocable trust?

Talk with a Florida estate planning lawyer

Trusted Elder Law & Asset Protection helps families in Pensacola, Escambia, Santa Rosa, Okaloosa and Walton counties plan ahead. Call 850-607-2222 or schedule a free Peace of Mind Strategy Session.

This article is general information about Florida law, not legal advice for your situation.