The Florida Lady Bird Deed: Pros and Cons for Passing Down Property

If you’re looking for a way to pass down real estate in Florida without sending your loved ones through probate, you may have heard about the Lady Bird Deed, also known as an enhanced life estate deed. This estate planning tool can help you maintain control of your property during your lifetime while ensuring a smooth transition after death.

But while a Lady Bird Deed offers several advantages, it’s not the right fit for everyone. As an estate planning attorney in Sarasota, I often help clients evaluate whether this option aligns with their broader legal and family goals.

What Is a Florida Lady Bird Deed?

A Lady Bird Deed is a type of enhanced life estate deed that allows the current owner (the “life tenant”) to:

• Retain full control of the property during their lifetime
• Sell, lease, or mortgage the property without the consent of the beneficiaries
• Automatically transfer ownership to named beneficiaries (called “remaindermen”) upon death, without probate
  

Unlike traditional life estate deeds, the Lady Bird Deed gives the owner flexibility without sacrificing the benefits of non-probate transfer.

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Pros: Why Consider a Lady Bird Deed?

There are several strategic advantages to using a Lady Bird Deed as part of your estate plan:

Avoids Probate

Upon your passing, the property automatically transfers to your beneficiaries—no court involvement or delays.

Maintains Full Ownership and Control

Unlike joint ownership or traditional life estates, a Lady Bird Deed allows you to sell or change beneficiaries during your lifetime.

May Help with Medicaid Planning

In certain cases, the property may not be counted as an asset for Medicaid eligibility, and it may be exempt from recovery, though this should be reviewed with your attorney in the context of your entire plan.

Simple and Cost-Effective

Compared to creating and maintaining a trust, a Lady Bird Deed can be a more affordable way to simplify the transfer of real property and potentially reduce the need for probate.

Cons: When a Lady Bird Deed May Not Be the Right Choice

While powerful, Lady Bird Deeds are not a one-size-fits-all solution. Here are some limitations and risks to consider:

Limited to Real Estate

This deed only governs one piece of property. It does not cover bank accounts, vehicles, or personal property, which may still require probate.

Potential for Family Conflict

If multiple beneficiaries are named and they don’t agree on what to do with the property, it can lead to disputes or forced sales.

Not Ideal for Complex Estates

If your estate includes multiple properties, high-value assets, or beneficiaries with special needs, a revocable living trust may offer more flexibility and protection.

Limited Tax Planning Benefits

Unlike a revocable trust, a Lady Bird Deed doesn’t allow for sophisticated tax planning strategies. While Florida doesn’t have a state estate tax, federal estate and capital gains taxes may still apply.

Why It’s Best to Review in the Context of a Full Estate Plan

Even if a Lady Bird Deed fits your needs today, your situation might change, whether through remarriage, relocation, or financial shifts. That’s why it’s important to treat this deed as one piece of a larger estate planning strategy, rather than a standalone solution.

A comprehensive plan ensures that all of your assets, not just real estate, are accounted for and distributed according to your wishes.

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Florida Example: How One Deed Avoided Months of Probate

A Sarasota client recently passed away, leaving behind a home titled via Lady Bird Deed. Because the deed was properly recorded, the property transferred immediately and without court involvement to her two sons—saving the family months of probate and thousands in legal fees.

Meanwhile, her other assets that were not properly planned had to go through formal administration, delaying final distribution.

Final Thoughts: Discuss Your Options Before Making a Move

The Florida Lady Bird Deed can be a powerful probate-avoidance tool, but it should be implemented with care. Every client’s goals and family dynamics are different, and a conversation with a qualified attorney can help you determine if this option fits into your estate planning puzzle.

Contact Bart Scovill, PLC »

Wondering if a Lady Bird Deed is right for you? Let’s discuss your options.

Related Services:

• Lady Bird Deed Services in Florida »
• Estate Planning Services »
  
  

This blog post is for general informational purposes only and does not constitute legal advice. Reading this article or contacting our office does not create an attorney-client relationship. Every legal situation is unique; you should consult with a qualified attorney regarding your individual circumstances. Nothing in this article should be considered tax advice. Our office does not provide tax advice, and you should consult with a qualified tax professional before taking any action that may have tax consequences.