Lady Bird deeds, also known as enhanced life estate deeds, give you a way to transfer your home at your death without probate while keeping full control of the property during your lifetime. They differ from traditional life estate deeds because you retain the right to sell, mortgage, or change beneficiaries without anyone’s permission. They can also support Medicaid eligibility planning when used correctly. Understanding how these deeds work helps you decide whether they fit your goals or whether a revocable trust may offer a better solution.
What Is an Enhanced Life Estate (Lady Bird) Deed?
A Lady Bird deed is a Florida deed arrangement that lets you keep a life estate in your property while naming one or more people to receive the property automatically when you pass away. The “enhanced” part refers to the lifetime rights you keep. With a Lady Bird deed, you can:
- Sell the property
- Refinance or take out a mortgage
- Change beneficiaries
- Use or improve the property in any way you choose
You do not need anyone’s consent to make these decisions, and your beneficiaries do not have any ownership rights until your death.
How Lady Bird Deeds Differ From Traditional Life Estate Deeds
Traditional life estate deeds give the beneficiary, known as the remainder owner, a present ownership interest. That means you generally lose the ability to sell or change the future transfer without the remainder owner’s approval. In some cases, a remainder owner’s creditors can even attach their interest.
A Lady Bird deed avoids these limitations. Remainder beneficiaries have no legal rights while you are alive, and no creditor can reach their future interest. This added control is one of the reasons enhanced life estate deeds are common in Florida estate planning.
How Lady Bird Deeds Help You Avoid Probate
Upon your death, the property automatically transfers to the beneficiaries listed in the deed. There is no need for a probate court process, and no waiting period for the transfer to become effective. Your beneficiaries record your death certificate, and the property becomes theirs.
Because the transfer is automatic, it can reduce delays and expenses. It also lets your family avoid court proceedings, which can be especially helpful for people who own only one primary residence and want a simple transfer.
The Role Lady Bird Deeds Play in Medicaid Planning
Lady Bird deeds can protect your home from probate while also preserving eligibility for Florida Medicaid. In Florida, a primary residence that passes through a Lady Bird deed is not considered a transfer of assets that triggers a Medicaid penalty period. The property remains yours during your lifetime, which means you keep the homestead exemption and related property tax protections.
If long-term care becomes necessary later, a properly structured Lady Bird deed can help your family avoid losing the home to estate recovery. Medicaid cannot place a lien on property that transfers automatically at death outside of probate.
Advantages of Using a Lady Bird Deed
Lady Bird deeds offer several benefits for Florida homeowners:
- You keep complete control of the property during your lifetime.
- Your home avoids probate and passes directly to your chosen beneficiaries.
- The deed supports Medicaid eligibility planning and may prevent estate recovery.
- You retain your homestead protections.
- The arrangement is often more affordable and simpler to maintain than a trust.
These features make Lady Bird deeds attractive for homeowners who want a straightforward transfer plan without giving up any control.
Disadvantages and Limits to Be Aware Of
Even with these benefits, Lady Bird deeds are not the right fit for everyone. Possible drawbacks include:
- They only apply to real property, not financial accounts or personal items.
- Title companies may require additional paperwork if the property is sold shortly after death.
- If you have a complex estate, blended family, or multiple properties, a deed may not be flexible enough.
Lady Bird Deed vs. Revocable Trust: Which Is Better?
Both tools can avoid probate, but they serve different needs. A revocable trust offers more flexibility for people with multiple assets or families with more complicated arrangements. It can manage funds for children, address property in different states, and create long-term instructions that a deed cannot provide.
A Lady Bird deed is often better for people who want:
- A simple plan for a primary residence
- To keep full control of the property
- A low-maintenance option that still avoids probate
- Medicaid-friendly planning without creating a trust
We will help you compare the two options so you can choose the one that best fits your goals.
Take the Next Step in Protecting Your Home
Lady Bird deeds can be powerful tools for avoiding probate and protecting your home, but they must be drafted correctly. If you want to know whether this option aligns with your estate planning goals, we will help you review your property, long-term needs, and family situation.
Contact Verras Law to discuss the best way to protect your home and make things easier for the people you care about.