Few estate planning tools are as uniquely Florida as the Lady Bird Deed. Officially known as an Enhanced Life Estate Deed, it can be a simple, affordable way to pass real estate to your loved ones outside of probate while keeping full control during your lifetime.
What Is a Lady Bird Deed?
A Lady Bird Deed is a special type of deed that lets you keep complete ownership and control of your home or other Florida real estate during your lifetime, while naming one or more beneficiaries (called "remainder beneficiaries") who automatically receive the property when you pass away.
Unlike a traditional life estate deed, you retain the right to sell, mortgage, lease, or revoke the deed at any time — without needing the beneficiaries' permission.
How Does It Work?
While you are alive, nothing about your ownership changes. You can live in the property, rent it out, refinance it, or sell it. The named beneficiaries have no legal interest until your death.
When you pass away, the property automatically transfers to the named beneficiaries — no probate required. The transfer is typically documented by recording a certified copy of the death certificate along with an affidavit in the public records.
Key Benefits
• Avoids probate for your Florida homestead or other real estate.
• You retain full ownership and control during your lifetime.
• Can help avoid gift tax concerns associated with lifetime transfers.
• Generally preserves Florida homestead protections and exemptions.
• Beneficiaries typically receive a stepped-up tax basis at death, which may reduce future capital gains taxes.
Important Considerations
A Lady Bird Deed is a powerful planning tool, but it is not right for every situation. It does not address other assets such as bank accounts, investments, retirement accounts, or personal property. It also is not a substitute for a comprehensive estate plan that addresses incapacity planning, healthcare directives, powers of attorney, and other important considerations.
In addition, once beneficiaries inherit the property, their individual circumstances may affect the property. Issues such as creditor claims, divorce, lawsuits, or bankruptcy can create future complications. Careful planning is essential to ensure your goals are fully protected.
If you own real estate in Florida and want to simplify the transfer process for your loved ones, a Lady Bird Deed may be a valuable addition to your estate plan. At Lloyd Law Firm, we will review your goals and help determine whether a Lady Bird Deed or another estate planning strategy is the best fit for your unique circumstances.