A Lady Bird Deed—also known as an enhanced life estate deed—is a useful and increasingly popular estate planning tool in Texas. It allows you to transfer real estate to a chosen beneficiary upon your death without giving up ownership or control during your lifetime.
Here’s a quick look at the key benefits and requirements for using a Lady Bird Deed in Texas.
Texas Estates Code §114.051-114.106 establishes the legal instrument known as a “Transfer-on-Death Deed” (“TODD”), which is also popularly known as a Lady Bird Deed. Lady Bird Deeds can only be used for real property that is physically located within the State of Texas. So, this only applies to land, buildings, and mineral rights in Texas, and does not work for personal property such as vehicles, money, or other personal possessions.
✅ Benefits of a Lady Bird Deed in Texas
1. Avoids Probate
One of the biggest advantages of a Lady Bird Deed is that it bypasses the probate process. This means your property can transfer directly to your named beneficiary without going through court, saving time, money, and stress for your loved ones.
2. You Keep Full Ownership
You don’t lose control of your property. You can:
- Sell it
- Lease it
- Mortgage it
- Cancel or change the deed
—without needing the beneficiary’s permission.
3. Medicaid Estate Recovery Protection
Texas generally does not recover Medicaid costs from property that passes through a Lady Bird Deed. That makes it a valuable tool for seniors who receive Medicaid and want to protect their home from recovery after they pass away.
4. Maintains Property Tax Benefits
Because you retain ownership during your lifetime, you can still claim homestead exemptions and other property tax benefits available in Texas.
5. Simple and Affordable
Creating a Lady Bird Deed is generally less expensive than setting up a trust or going through probate. It’s a straightforward, one-time legal document that can be recorded with the county. (It is still advisable to consult with legal counsel experienced in estate law and property law in Texas before proceeding, and it can reduce risk to get the help of a professional in creating the correct documents and filing them with your county government.)
⚖️ Requirements for a Valid Lady Bird Deed in Texas
To be valid and effective, a Lady Bird Deed in Texas must meet the following criteria:
- Grantor’s Name
The current owner (the “grantor”) must be clearly identified. - Property Description
The deed must contain a legal description of the real estate being transferred (not just the address). - Retained Life Estate with Full Powers
The deed must state that the grantor keeps a “life estate” with the right to sell, use, or mortgage the property—this is what makes it an enhanced life estate. - Named Remainderman (Beneficiary)
The person(s) who will receive the property after your death must be clearly named. - Proper Signatures
The deed must be signed by the grantor in front of a notary public. - Filing with County Clerk
To be effective, the deed must be filed with the county clerk in the county where the property is located.
Final Thoughts
For Texas property owners looking for a way to pass on real estate efficiently while keeping full control during life, a Lady Bird Deed can be an excellent choice. It simplifies estate planning, avoids probate, and can even help protect against Medicaid estate recovery.
Still, because estate and Medicaid laws can be complex, it’s always wise to consult a Texas-based estate planning attorney to ensure a Lady Bird Deed fits your unique situation.
