Lady Bird Deeds – Introduction
When planning your estate in Florida, you may hear about a “Lady Bird Deed” (also called an Enhanced Life Estate Deed). This tool has become increasingly popular because it can allow you to transfer real estate to your heirs without the expense or delay of probate. But is it right for you?
At St. Johns Law Group, our estate planning attorneys regularly prepare Lady Bird Deeds for clients in St. Augustine, Ponte Vedra, Palm Coast, Nocatee, and throughout Northeast Florida. Here’s what you should know.
What Is a Florida Lady Bird Deed?
A Lady Bird Deed allows a property owner to retain full control of their property during their lifetime — including the right to sell, mortgage, or change beneficiaries — but automatically transfers ownership to designated beneficiaries upon death.
Unlike a traditional life estate deed, a Lady Bird Deed offers more flexibility for the owner during their lifetime.
Key Benefits of a Lady Bird Deed
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Avoids Probate – Property passes directly to beneficiaries without court involvement.
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Retains Control – You can sell, mortgage, or change beneficiaries at any time.
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Medicaid Planning – Often treated as a non-countable asset transfer for Medicaid eligibility purposes.
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Cost-Effective – Typically less expensive than setting up a trust.
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Tax Advantages – Beneficiaries may receive a step-up in tax basis, reducing capital gains.
Risks and Limitations
While Lady Bird Deeds are powerful, they aren’t for everyone. Potential drawbacks include:
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Limited to real estate (not suitable for other assets).
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May not work well in blended families or when multiple beneficiaries are involved.
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Could cause confusion if not drafted correctly, leading to litigation.
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May not provide the full asset protection of a trust.
Lady Bird Deed vs. Trust: Which Is Better?
A revocable living trust offers more comprehensive estate planning, especially if you own multiple properties or need to address complex family dynamics. A Lady Bird Deed is a simpler, cost-effective option for clients whose primary concern is passing down their Florida homestead efficiently.
Why Work With an Attorney?
DIY or online deed forms often miss key legal details, like Florida homestead restrictions or Medicaid implications. At St. Johns Law Group, our attorneys ensure that your Lady Bird Deed is properly drafted, recorded, and integrated into your larger estate plan.
Call to Action
If you’re considering a Florida Lady Bird Deed, our attorneys can help you determine if it’s the right estate planning tool for your situation.
📞 Contact St. Johns Law Group today at (904) 495-0400 to schedule a consultation.
🔗 Learn more about our full range of Estate Planning Services.