Florida’s Enhanced Life Estate Deed—commonly called a Lady Bird Deed—is often promoted as a way to avoid probate. While it may seem like a convenient shortcut, relying too heavily on deeds as testamentary tools can lead to complications and unintended consequences.
What Is a Lady Bird Deed?
A Lady Bird Deed allows you to:
- Retain full control over your property during your lifetime,
- Automatically transfer ownership at death to named beneficiaries, and
- Avoid probate for the real estate in question.
It’s especially popular among Florida homeowners looking for a simple, inexpensive solution to probate avoidance.
The Advantages
- No probate for the property
- Retains homestead protections
- Can be revoked or changed during your life
- Does not count as a gift for Medicaid eligibility purposes
But Deeds Make Poor Testamentary Documents
While Lady Bird Deeds have their place, they can’t offer the flexibility or reliability of a well-drafted estate plan:
1. No Backup Beneficiaries
If the named remainder beneficiary dies before you, the deed may fail—and your property may still end up in probate.
2. No Contingency Planning
Lady Bird Deeds can’t accommodate complex situations like:
- Minors as beneficiaries
- Multiple generations
- Special needs planning
- Asset protection for heirs
3. Risk of Confusion or Misuse
Because the property skips probate, your personal representative or trustee may not know how to coordinate expenses, taxes, or equitable distributions to other heirs.
4. Potential Title Issues
Poorly drafted or improperly recorded deeds can create problems for future buyers or during refinancing.
Better Alternatives: Trust-Based Planning
A revocable living trust offers everything a Lady Bird Deed promises—and more. It allows:
- Flexible distributions
- Backup provisions
- Asset protection for beneficiaries
- Seamless handling of incapacity
It may also include instructions for multiple properties, bank accounts, business interests, and personal effects—all in one document.
Conclusion
Lady Bird Deeds are tempting for their simplicity, but they are no substitute for a comprehensive estate plan. For some, they’re a helpful supplement—but for many, they create more problems than they solve.
Bart Scovill, PLC can help you choose the best tools for your specific goals—not just the quickest solution. Call us today at 941-365-2253 or visit Scovills.com to schedule your personalized estate planning consultation.
