Florida homeowners have a powerful tool that most other states do not: the Lady Bird deed, also known as an enhanced life estate deed. It solves one of the most common estate planning problems — how to pass your home to your children without probate — while preserving all your rights during your lifetime and remaining Medicaid compliant.
Unlike a standard life estate deed, a Lady Bird deed gives you something extraordinary: you can sell, mortgage, lease, or change your mind about the property at any time, without needing your beneficiaries' consent. That is the "enhanced" feature that sets it apart.
How a Lady Bird Deed Works
When you sign a Lady Bird deed, you reserve a life estate with retained powers — meaning you keep full ownership and control during your lifetime. You name one or more remaindermen (typically your children or other heirs) who automatically receive the property at your death.
At your death, title transfers to the remaindermen by operation of law — without going through probate, without court involvement, and without delay. The property simply becomes theirs upon presentation of a death certificate to the county property appraiser.
Lady Bird Deed vs. Other Probate Avoidance Options
| Feature | Lady Bird Deed | Standard Life Estate | Revocable Trust | Joint Tenancy |
|---|---|---|---|---|
| Avoids probate | Yes | Yes | Yes | Yes |
| Can sell without beneficiary consent | Yes | No | Yes | No |
| Medicaid compliant | Yes | No | Yes | Often No |
| Protects homestead exemption | Yes | Yes | Yes | Yes |
| Step-up in basis at death | Yes | Yes | Yes | Partial |
| Protects from estate recovery | Generally yes | Generally yes | Generally yes | No |
| Covers incapacity | No | No | Yes | No |
| Covers all assets | Real property only | Real property only | All assets | Titled assets only |
| Cost | Low | Low | Moderate | Low |
Why Lady Bird Deeds Are Medicaid Compliant
One of the most valuable features of a Lady Bird deed is its Medicaid compliance. Because you retain the right to revoke the deed and sell the property during your lifetime, Florida Medicaid does not treat the deed as a completed gift. As a result, the deed does not trigger the 60-month Medicaid lookback period under 42 U.S.C. § 1396p(c).
Furthermore, property transferred via Lady Bird deed passes outside of your probate estate. Florida's Medicaid estate recovery program (F.S. § 409.9101) can only recover from the probate estate. Assets passing via Lady Bird deed are generally protected from Medicaid estate recovery claims.
Florida Does Not Have a Transfer-on-Death Deed
Many people ask about Transfer-on-Death (TOD) deeds for real property — a simple mechanism available in about 30 states that lets you name a beneficiary for real property like a bank account beneficiary designation. Florida has not adopted TOD deeds for real property. Florida has not enacted the Uniform Real Property Transfer on Death Act (URPTODA).
The Lady Bird deed is Florida's functional equivalent. It achieves the same result — property transfers at death without probate — with the added advantage of retained control during lifetime.
When a Lady Bird Deed Is the Right Choice
A Lady Bird deed is an excellent choice when:
- You want to pass your Florida home to your children without probate
- You want to protect your home from Medicaid estate recovery
- You want to remain eligible for Medicaid without triggering the lookback
- You own a single Florida property and do not need a full trust
- Your beneficiaries are adults with no special needs (a Special Needs Trust may be preferable for disabled beneficiaries)
When a Trust May Be Better
A Lady Bird deed is property-specific — it only covers real estate. If you have significant financial assets, multiple properties, or need to plan for incapacity, a revocable living trust provides more comprehensive coverage. Many Florida residents use a Lady Bird deed in combination with — or as an alternative to — a full trust, depending on their specific circumstances.
Frequently Asked Questions
Related Reading
- Quitclaim vs. Warranty Deed in Florida — how the lady bird deed compares to other Florida deed types.
- How Long Does Probate Take in Florida? — the process a lady bird deed helps your home avoid.
Protect Your Florida Home From Probate
Cornerstone prepares Lady Bird deeds and complete Florida estate plans for Daytona Beach and statewide clients. Start online or contact us for a free consultation.
Schedule a Free Consultation →This article is for general informational purposes only and does not constitute legal advice. Florida real estate and estate planning law is complex and fact-specific. Contact Cornerstone Wealth & Legacy Law for advice regarding your specific property and situation. Arthur Simpson, Esq. is licensed to practice law in the State of Florida.