Lady Bird Deeds: What They Are and How They Help Florida Residents Skip Probate

A Lady Bird Deed, also known as an Enhanced Life Estate Deed, is a unique estate planning tool that allows a property owner to transfer real estate to beneficiaries upon death without probate, while keeping full control of the property during their lifetime. It’s unique because currently, only five states allow them to be created. 

For many Florida homeowners, especially retirees and seniors, this can be a simple and practical way to pass a homestead property to children or loved ones without the frustrations of probate court.

What Exactly Is a Lady Bird Deed?

It’s an estate planning document native to Florida. When you sign a Lady Bird Deed, you remain the full owner of the property for the rest of your life. You can live in it, rent it out, refinance it, take out a mortgage, or sell it entirely. You do not need permission from the people you’ve named as future beneficiaries. They have no present ownership rights and no control over the property while you are alive.

You also maintain the ability to change your mind. If you decide later that you want to name different beneficiaries, you can record a new deed. The original beneficiaries cannot prevent you from doing so because their interest does not become effective unless and until you pass away.

At your death, the property automatically transfers to the beneficiaries named in the deed. This transfer happens by operation of law, meaning it does not go through probate court. The beneficiaries typically only need to record a certified death certificate in the county property records to complete the process.

This is what makes the Lady Bird Deed different from a traditional life estate deed. In a standard life estate arrangement, the remainder beneficiaries receive an immediate vested interest in the property. That means the owner often cannot sell or refinance the property without their consent. With a Lady Bird Deed, the beneficiary’s interest is not placed during your lifetime, giving you much greater flexibility.

How Does it Work?

When you create a Lady Bird Deed, you name yourself as the “life tenant” and designate one or more beneficiaries as “remaindermen.”

During your lifetime:

• You can live in the home.

• You can sell it.

• You can refinance it.

• You can cancel or change the deed.
  

After your death:

• The property transfers directly to the named beneficiaries.

• No probate is required for that property.

• Ownership passes by operation of law.

The beneficiaries have no ownership rights while you are alive.

What Makes a Lady Bird Deed Unique to Florida Residents?

Avoiding Probate

Probate in Florida can take months and sometimes longer, depending on the complexity of the estate. It also depletes your estate’s value, delaying access to assets during the entirety of the process. A Lady Bird Deed allows real estate to transfer immediately upon death without court involvement.

Maintaining Full Control

Unlike a standard life estate deed, the enhanced version does not require beneficiary permission to sell or refinance. You retain full decision-making authority.

Medicaid Planning Benefits

In Florida, Medicaid can help pay for long-term nursing home care if someone qualifies financially. However, after the person passes away, the state has the right to try to recover certain Medicaid expenses from the person’s estate. This is called Medicaid estate recovery.

In Florida, estate recovery generally applies to assets that go through probate.

Here’s where a Lady Bird Deed can matter.

Because a Lady Bird Deed transfers the property automatically at death (without probate), the home typically does not become part of the probate estate. And if it is not part of the probate estate, it may not be subject to Medicaid estate recovery in Florida.

That can make it a good choice for seniors who:

• Own a homestead property

• May need nursing home care in the future

• Want the home to pass to their children
  

However, it’s important to understand what this does and does not do.

A Lady Bird Deed does not:

• Automatically qualify someone for Medicaid

• Protect assets during the Medicaid eligibility lookback period

• Protect non-homestead property

• Replace long-term care planning
  

It may help limit estate recovery after death, but it does not avoid Medicaid eligibility rules while the person is alive.

Preserving Homestead Protections

Florida’s homestead laws offer strong creditor protection and property tax benefits. A properly drafted Lady Bird Deed typically preserves:

• Homestead tax exemptions

• Save Our Homes cap protections

• Creditor protections during the owner’s lifetime

Lady Bird Deed vs. Traditional Life Estate

A traditional life estate deed gives the remainder beneficiaries immediate vested rights. That means the life tenant often cannot sell or refinance the property without their consent.

A Lady Bird Deed avoids this issue. The beneficiaries have no present ownership interest—only a future interest that activates upon death.

This flexibility is one of the biggest reasons Florida residents prefer the Lady Bird deed.

When a Lady Bird Deed May Be a Good Fit

A Lady Bird Deed may be your best option if:

• You own Florida real estate in your individual name

• You want to avoid probate for that property

• You want to keep full control while alive

• You have a relatively simple estate plan

• You want a cost-effective solution compared to creating a trust

It is most commonly used for primary residences, but it can also apply to other Florida real property.

Potential Downsides and Limitations to a Lady Bird Trust

While helpful, a Lady Bird Deed is not a one-size-fits-all solution.

It only applies to Florida real estate. It does not address bank accounts, investments, or other assets.

It may not be appropriate if:

• You have a complex estate plan

• You want delayed distributions over time

• You need asset protection planning beyond homestead

Improper drafting can also create title issues or unintended consequences, so it’s important to create one with an estate planning attorney to ensure full legal validity.

How Is It Different From a Revocable Living Trust?

Both a Lady Bird Deed and a revocable living trust can avoid probate for real estate.

But: A trust can manage multiple assets and provide ongoing control after death.

A Lady Bird Deed transfers the property outright to beneficiaries immediately upon death.

If you want conditions, staged distributions, or creditor protection for beneficiaries, a trust may offer more flexibility.

If your main goal is simply avoiding probate on your home, a Lady Bird Deed can be the perfect fit.

Answering Frequently Asked Questions

Does a Lady Bird Deed skip probate completely?

No. A Lady Bird Deed only avoids probate for the specific piece of real estate listed in the deed. If you own other assets in your individual name (like bank accounts, investment accounts, or additional property), those assets may still need to go through probate unless they are otherwise properly titled or have beneficiary designations.

Can a Lady Bird Deed replace a full estate plan?

No. A Lady Bird Deed is a useful tool, but it is not a comprehensive estate plan. It only addresses one asset: the property described in the deed. It does not cover personal property, financial accounts, guardianship planning, incapacity planning, tax considerations, or structured distributions. Many people use it as part of a broader plan, not as a single solution.

We hope this article was of use to you! If you have further questions, feel free to contact us for more information.