Ask Terry Questions Lady bird deed

Lady bird deed

By Terry Savage on June 09, 2025 | Financial Planning / Retirement

I live in Florida. Florida allows Lady bird deeds. Your thoughts?

Terry Says

For the uninitiated, a Lady Bird deed, also known as an enhanced life estate deed, is a type of deed that allows property owners to transfer their real estate to a beneficiary upon their death while retaining full control and use of the property during their lifetime. This deed ensures the property passes directly to the beneficiary without going through probate, which can be a complex and time-consuming process.

It also provides flexibility, as the owner can sell or mortgage the property without involving the beneficiary.
AND, it may provide protection against seizure of assets to repay Medicaid claims on family assets if you use those benefits for long term custodial care, since currently Lady Bird transfers do not fall under the 5-year lookback rule.

Florida and Florida, Texas, Michigan, Vermont and West Virginia allow Lady Bird deeds.
Read this for more detail: https://www.nerdwallet.com/article/investing/estate-planning/lady-bird-deed
They are a relatively inexpensive way to transfer property — at death. However, I much prefer a revocable living trust, which authorizes a successor trustee to control the property if you are alive, but incapacitated. So if you decide on a Lady Bird trust, be sure to give someone you trust a business power of attorney to handle the sale, or rental, or tax payments if you cannot deal with those issues because of a stroke or dementia, or accident.

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