Deeds

LADY BIRD DEED - 

  What Is a Lady Bird Deed?

A Lady Bird Deed, also called an Enhanced Life Estate Deed, is a special type of deed that automatically transfers property to a new owner when the current owner dies. In Florida, a Lady Bird Deed also lets the current owner control the property while alive and avoids probate upon the owner’s death. The purpose of the Lady Bird Deed is to automatically transfer property upon death to designated beneficiaries. The Lady Bird Deed is fully legal in the state of Florida.

The Lady Bird Deed is a version of a Life Estate Deed with enhanced powers reserved for the property’s original owner. A Lady Bird Deed is also known as a Transfer on Death deed because the property transfers immediately and automatically upon the death of the current owner.

Benefits of a Lady Bird Deed

A Lady Bird Deed is a type of property deed that allows Florida homeowners to avoid probate at death. When the homeowner dies, the property transfers directly to the beneficiaries named in the deed. The property does not become part of the probate estate. A Lady Bird Deed is inexpensive, revocable, and simple compared to a Trust.

In summary, there are four benefits to a Lady Bird Deed in Florida:

1. Avoids probate. A Lady Bird Deed allows a property to transfer on death to named beneficiaries without probate.
2. Low cost. A Lady Bird Deed can be obtained for a relatively low cost compared to a more complicated and expensive living trust.
3. Simple. A Lady Bird Deed does one thing, but does it well: it transfers a person’s real property upon the death of the property owner.
4. Revocable. The property owner is free to change their mind at any point during their lifetime. The property owner can enter into a new deed that gives the remainder interest to someone else or cancels the Lady Bird Deed entirely.

Disadvantages of a Lady Bird Deed in Florida

1. Lack of Asset Protection. A creditor of the current owner may place a lien on the property, other than a homestead, conveyed by a Lady Bird Deed.
2. Constitutional Restrictions. A person cannot use a Lady Bird Deed to disinherit a spouse or minor child.
3. Unexpected Deaths. If the holder of the remainder interest dies before the life tenant dies, it may become unclear as to what happens to the property when the original life tenant later dies.
4. Changes to the Estate Plan. It will require extra work for the original owner to change their plan should they later decide not to leave the property to the named remainderman.

Despite the disadvantages, people often use Lady Bird Deeds in Florida as a simple, inexpensive way to transfer their home upon death without probate.

How to Use a Ladybird Deed to Avoid Probate

Probate is a legal process by which a court assembles all of a deceased person’s assets in a “probate estate,” determines if any creditors have claims against the deceased person, and then distributes whatever is left in the probate estate after paying creditors according to the person’s will. Florida law requires that an attorney be involved in formal probate. Probate is both expensive and time-consuming for a family.

A Lady Bird Deed avoids probate because the property title automatically transfers to the remainderman by “operation of law.” The subject property is not part of the decedent’s probate estate.

 ⚠️ Disclaimer: We are not attorneys and do not provide legal advice or representation. All services are based on information you provide. If your situation is complex or you require legal counsel, we will gladly refer you to a trusted attorney in our network.

It is important to know that we are NOT attorneys and cannot give legal advice. We are document preparers and do not work under the supervision of an attorney but instead provide document preparation services to the general public.