Lady Bird Deeds vs. Wills: Key Benefits of Using a Lady Bird Deed
When it comes to passing on real estate, Lady Bird Deeds offer several distinct advantages over traditional wills. Here’s a breakdown of the key benefits:
✅ Avoids Probate
- Lady Bird Deed: Transfers the property automatically to the beneficiary upon death, bypassing probate entirely.
- Will: Property must go through the probate process, which can be slow, costly, and public.
✅ Retains Full Control During Lifetime
- With a Lady Bird Deed, you can still sell, lease, refinance, or change the deed anytime. You’re not locked in.
- A will doesn’t impact your ownership rights either—but it doesn’t transfer anything until after your death and only through probate.
✅ Faster & Easier Transfer
- The property passes immediately and directly to your named beneficiary when you die.
- A will may take months (or longer) to settle through court, delaying access to the property.
✅ Possible Medicaid Benefits
- In some states, Lady Bird Deeds can help protect property from Medicaid estate recovery, potentially preserving it for your heirs.
- A will does not shield property from Medicaid recovery claims after your death.
✅ Lower Costs
- Creating a Lady Bird Deed typically costs less than going through probate.
- Probate can involve attorney fees, court costs, and delays.
✅ Private Transfer
- A Lady Bird Deed keeps the transfer private—it’s not a matter of public record at the time of death.
- Wills become public documents once filed with probate court.
⚠️ Important Caveat
While Lady Bird Deeds are great for real estate, they only apply to the specific property named in the deed. Wills are broader and can cover all kinds of assets, not just real estate. Also, Lady Bird Deeds are not available in every state, so check your state laws or consult an attorney.
Summary Chart
| Feature | Lady Bird Deed | Will |
|---|---|---|
| Avoids Probate | ✅ Yes | ❌ No |
| Immediate Transfer on Death | ✅ Yes | ❌ No (must go through court) |
| Retains Control While Alive | ✅ Yes | ✅ Yes |
| Medicaid Recovery Protection | ✅ Possible (varies by state) | ❌ No |
| Covers Multiple Assets | ❌ No (real estate only) | ✅ Yes |
| Cost & Simplicity | ✅ Lower, simpler | ❌ Can be complex & costly |
In short, if you’re looking to transfer real estate to someone after your death without giving up control during your life, a Lady Bird Deed can be a faster, simpler, and more private alternative to a will.
