A Lady Bird Deed, formally known as an Enhanced Life Estate Deed, is a powerful estate planning tool available to Florida homeowners. It allows you to maintain complete control over your property during your lifetime while ensuring a seamless transfer to your chosen beneficiaries upon your death—without the need for probate. This article dives deep into the intricacies of Lady Bird Deeds in Florida, highlighting their benefits, how they compare to other tools, their potential drawbacks, real-life examples, and why they’re an essential tool in Florida estate planning.
What Is a Lady Bird Deed in Florida?
A Lady Bird Deed enables a property owner (grantor) to retain a life estate in their property, granting them the right to use, occupy, and control the property during their lifetime. Unlike traditional life estate deeds, a Lady Bird Deed allows the grantor to sell, mortgage, or otherwise manage the property without needing consent from the remainder beneficiaries (remaindermen). Upon the grantor's death, the property automatically transfers to the named remaindermen, bypassing the probate process.
This means your loved ones avoid the time-consuming and often expensive court process that comes with probate. It's one of the few estate planning tools that allow you to "have your cake and eat it too"—you retain control now and give with ease later.
What Makes the Lady Bird Deed in Florida So Powerful?
Florida is one of the few states that recognize the Lady Bird Deed. And for Florida residents, especially those with homestead property, it offers significant advantages. Here’s what makes it such a popular choice:
Probate is often viewed as the unavoidable headache of estate administration. But with a properly executed Lady Bird Deed, the property transfers immediately upon your passing—no court, no fees, no waiting.
Jamie Cuzmar recalls a case where a widow in Longwood, FL wanted to make sure her home passed directly to her only son. By placing a Lady Bird Deed on her property, her son avoided months of probate delays and thousands in legal fees. He had legal ownership within weeks.
With a traditional life estate deed, you lose the ability to make major decisions about your home without involving your beneficiaries. A Lady Bird Deed, however, lets you keep full authority to refinance, sell, or lease the property—without permission from anyone.
It’s perfect for people who want the benefits of an estate plan but aren’t ready to give up control.
Many Florida seniors worry about qualifying for Medicaid while still preserving assets for their heirs. Here’s the good news: in Florida, a Lady Bird Deed generally won’t count as a gift or transfer that affects Medicaid eligibility. Plus, because the property avoids probate, it’s not subject to Medicaid estate recovery.
Still, it’s important to work with an attorney experienced in both estate and Medicaid planning, as timing and documentation matter.
Florida’s homestead laws offer powerful tax and creditor protections. A Lady Bird Deed doesn’t interfere with those protections because legal ownership isn’t transferred until your death. You keep your homestead exemption and your constitutional rights as a Florida homeowner.
One of the biggest perks for beneficiaries? A step-up in basis. That means when they inherit the home, its value is reset to its market value at the time of your death—dramatically reducing any capital gains taxes if they sell it.
While the Lady Bird Deed is incredibly effective for transferring your home, it does have one major limitation—it only applies to real estate. More specifically, your primary residence.
This means that your other assets—like bank accounts, investments, vehicles, or personal property—will still require additional planning tools like a will, trust, or beneficiary designations.
Jamie Cuzmar often uses the Lady Bird Deed as part of a more comprehensive estate plan. It's perfect for clients who want a simple way to pass on their home—but it’s not a catch-all solution. Think of it as one powerful tool in your estate planning toolbox, not the whole kit.
What Is the Process to Create a Lady Bird Deed in Florida?
Creating a Lady Bird Deed involves more than just filling out a form—it must be tailored to your unique goals and properly executed to hold up under scrutiny. Here’s how it works:
Example:
We once helped a couple in Central Florida who had just paid off their mortgage and wanted to ensure their home passed to their daughter without court intervention. They didn’t want to set up a trust or spend thousands on legal paperwork.
With a Lady Bird Deed, we were able to provide a simple, effective solution. They retained full ownership rights, continued to benefit from Florida’s generous homestead tax exemptions, and had the peace of mind knowing that one of their biggest assets was protected.
Their daughter inherited the home immediately after their passing—no court appearances, no months of waiting, it was a seamless and smooth process for everyone.
It’s a common question we get at Cuzmar Law: “Why not just put the home into a revocable living trust instead of doing a Lady Bird Deed?”
Both tools are used to avoid probate, and both can be very effective in Florida—but they serve slightly different purposes and levels of complexity. Here's how they compare:
A Lady Bird Deed is generally more cost-effective and quicker to implement. It’s a single document, usually created during a one-time consultation, and requires no ongoing management. There are no separate bank accounts, annual trustee duties, or extra steps after it's filed.
On the other hand, setting up a revocable living trust can involve more upfront costs and more administration over time. The trust must be funded (meaning you have to title your assets in the name of the trust), and you or someone else must serve as trustee and manage it.
If you’re looking for a simple, low-maintenance solution specifically for your home, a Lady Bird Deed can check the box without the added complexity.
The Lady Bird Deed only applies to your real estate—most often your primary residence. It doesn’t cover your savings accounts, investment portfolios, vehicles, or personal belongings.
That’s where a revocable trust shines. It’s a more comprehensive planning tool that can include nearly all of your assets. It’s especially valuable for families with blended households, out-of-state properties, or minor children who may need ongoing financial guidance.
As Jamie Cuzmar often tells clients: “If you just want to protect your home and you have clear beneficiaries, a Lady Bird Deed can be a home run. But if you want to ensure everything is distributed smoothly and privately, a trust gives you that broader control.”
Both the Lady Bird Deed and a revocable trust help you avoid probate—but the trust offers more privacy and flexibility. For example, if you want to stagger distributions to your children (say, 50% at age 30 and 50% at 35), or set specific conditions around inheritance, a trust gives you that flexibility. A Lady Bird Deed simply transfers ownership outright upon your death.
Both tools can also play a role in Medicaid planning, but how they’re used differs. A Lady Bird Deed is often more favorable for seniors looking to preserve their home while qualifying for Medicaid, since it doesn’t count as a present transfer. Trusts can be used for Medicaid planning too, but they often need to be irrevocable and created well in advance due to Florida’s five-year lookback period.
Are There Any Downsides?
Yes—but most are manageable with legal guidance:
What About Lady Bird Deeds and Homestead in Florida?
Florida’s homestead protections are some of the strongest in the nation. A Lady Bird Deed doesn’t interfere with them. In fact, it helps preserve those benefits for your heirs.
If you're considering other estate planning strategies, like a will or trust, it's important to ensure they don’t unintentionally waive your homestead rights. This is where an attorney like Jamie Cuzmar can help you avoid costly mistakes.
Lady Bird Deed FAQs
Yes. As long as you’re alive and have capacity, you can change your mind. That’s the beauty of the "enhanced" life estate—it gives you flexibility.
No. Your mortgage remains in your name, and you can refinance or pay it off just like any other homeowner.
Not necessarily, but it’s often wise to tell them. It helps avoid confusion later and ensures your wishes are known.
Final Thoughts: Is a Lady Bird Deed Right for You?
For many Florida residents, especially homeowners looking for a simple and cost-effective way to pass on property, a Lady Bird Deed is an ideal solution. It avoids probate, protects your homestead, allows for Medicaid planning, and keeps you in control.
Still, every situation is unique. That’s why Cuzmar Law offers personalized estate planning solutions tailored to your family, your property, and your legacy. Whether it’s a Lady Bird Deed, a trust, or another strategy altogether, we’ll help you make the right decision.
Ready to get started? Book your free consultation now and let’s secure your home—and your peace of mind.
External Resources:
Jamie Cuzmar moved to Florida at a young age and is proud to call Central Florida his home. Jamie knew that he wanted to provide a more approachable experience to legal services by taking the time to know and interact with his clients. As founder of the Cuzmar Law, I am ...
Estate & Legacy Planning, Probate, and Trust Administration serving Longwood & throughout Florida.
Cuzmar Law is committed to answering your questions about Estate Planning law issues in Florida.
We offer a free consultation and we'll gladly discuss your case with you at your convenience. Contact us today to schedule an appointment.
Email us: info@cuzmarlaw.com
Call us: (407) 243 8993
