Lady Bird Deeds in Florida: Benefits, Requirements, and Key Considerations
In Florida, Lady Bird Deeds—also known as Enhanced Life Estate Deeds—offer a practical way to pass real estate to loved ones without going through probate. This can save money, time, and hassle for your loved ones when one passes away. These deeds are not explicitly named in the Florida Statutes, but they are recognized and enforceable under Florida’s common law principles and real estate practices.
If you’re a Florida homeowner looking for a flexible, affordable estate planning tool, here’s what you should know about Lady Bird Deeds.
📘 Legal Basis in Florida
Florida does not have a specific statute for Lady Bird Deeds or “Transfer-on-Death Deeds.” Instead, Florida courts and real estate practices recognize the common law enhanced life estate, which allows a property owner to:
- Retain full control over the property during their lifetime
- Name a beneficiary (called the remainderman) to automatically receive the property upon the owner’s death
While some states use statutory transfer-on-death (TOD) deeds, Florida does not. Instead, the Lady Bird Deed is the functional alternative for property transfer-on-death without the probate process.
✅ Key Benefits of a Lady Bird Deed in Florida
1. It Avoids Probate
The property passes directly to the named beneficiary upon the owner’s death, avoiding the time, cost, and complexity of probate court.
2. Owner Retains Full Control
You keep all your property rights, including the right to:
- Sell the property
- Lease it
- Take out a mortgage
- Cancel or change the deed at any time
3. Maintains Homestead Protections
Lady Bird Deeds preserve Florida’s homestead tax exemption and creditor protections while the owner is alive.
4. No Gift Tax
Because no present interest is transferred, the deed typically does not trigger federal gift tax concerns.
⚖️ Requirements for a Valid Lady Bird Deed in Florida
To be enforceable, a Lady Bird Deed in Florida should meet these criteria:
- Clear Intent to Create an Enhanced Life Estate
The deed must state that the owner retains a life estate with full powers, including the right to revoke the deed, sell, or mortgage the property. - Proper Legal Description
The deed must include the full legal description of the property—not just the street address. - Named Remainderman (Beneficiary)
The person(s) or entity who will inherit the property must be clearly listed. - Signed and Notarized
The deed must be signed by the grantor (owner) and notarized. - Recorded in County Records
To take effect, the deed must be recorded with the Clerk of Court in the county where the property is located.
⚠️ Important Warning: Medicaid Estate Recovery
Many people use Lady Bird Deeds in Florida to try to protect their home from Medicaid estate recovery, and in many cases, it can help. That’s because the deed avoids probate, and Florida’s estate recovery program only applies to probate assets as of this writing.
However, Medicaid rules can change, and there’s no absolute guarantee that Florida will not expand recovery efforts to non-probate transfers in the future. Also, Lady Bird Deeds don’t protect against Medicaid eligibility rules during your lifetime.
Always consult an elder law attorney to fully understand the impact on Medicaid planning and whether a trust or other strategy might better serve your long-term goals.
Final Thoughts
For Florida homeowners, a Lady Bird Deed can be a powerful estate planning tool—allowing you to retain full control of your property, avoid probate, and transfer ownership seamlessly to your chosen beneficiary. But like any legal strategy, it’s important to get personalized advice to make sure it fits your broader estate and Medicaid planning needs.