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Serving the Treasure Coast - Martin, Indian River, Okeechobee, and St. Lucie Counties
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Lady Bird Deeds


Lady Bird Deeds

In-House Consultations

In-House Consultations

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Real estate can be one of the most considerable assets a person may own. If you wish to pass property to your children, spouse, or other family members after you pass away, you may be wondering how to do so in a way that avoids probate. A Lady Bird Deed is a Florida estate planning tool that accomplishes this.

What is a Lady Bird Deed?

Also referred to as an “Enhanced Life Estate Deed” or “Transfer on Death Deed,” Lady Bird
Deeds transfer property ownership from the property owner (the grantor) to a beneficiary (the grantee) after the grantor passes away. A properly executed and filed Lady Bird Deed will avoid the probate process, while the living, grantors have full ownership responsibilities and can maintain, sell, or mortgage the property as they desire. Legend says that this type of deed got its name after President Lyndon B. Johnson used it to transfer property to his wife, Claudia “Lady Bird” Johnson, although there is no evidence of the transfer. Another rumor is that the deed got its name after the Florida attorney who created the deed used the names of the Johnson family after describing how the deed worked.

Life estate, Enhanced Life Estate and Lady Bird Deeds

In a traditional Life Estate Deed, the grantor can manage and maintain the property while living but has much less flexibility in making decisions about the property, such as mortgaging it, gifting it, or selling it without the beneficiaries’ consent. The owner cannot change their mind about transferring ownership to the named beneficiaries either. On the other hand, an Enhanced Life Estate Deed gives the grantor the flexibility to mortgage or sell the property, if desired, without first checking with the deed’s beneficiaries.

There is also a difference in how Life Estate and Enhanced Life Estate Deeds are factored in when planning for Medicaid benefits. There may be a five-year waiting period with a traditional Life Estate Deed before the applicant is eligible for Medicaid benefits. However, with an Enhanced Life Estate Deed, the deed is not considered a transfer of ownership. The Homestead Property does not count as part of the estate value when determining eligibility for Medicaid benefits. Thus, it avoids the five-year waiting period.

Benefits of a Lady Bird Deed

As stated above, one of the primary benefits of a Lady Bird Deed is that it allows a property owner to transfer property automatically to a beneficiary without going through probate. The grantor has more control over the property than a traditional Life Estate Deed. A Lady Bird Deed is most beneficial for simple estates with simple property ownership and is a viable choice to transfer property in Florida while avoiding probate.

There are many financial and tax-related benefits to a Lady Bird Deed. There are no tax consequences, and it avoids the Federal Gift Tax. Since it is not a completed gift exchange, you do not need to file a gift tax return. If your beneficiaries sell the property after you pass away, the property’s value is determined when the deed was put in place, so if your beneficiaries sell the property, they will pay less in capital gains taxes.

How to establish a Lady Bird Deed

Establishing a Lady Bird Deed may be complicated, so it is wise to seek the counsel of an estate planning lawyer to draft one. To create one, the property owner (grantor) signs the property’s deed to the named grantee(s). The deed specifies that the grantor can manage the property while alive. Upon death, grantees will file the death certificate to the Clerk of Court in the County where the property resides. Then, property ownership will transfer to the grantees.

Draft Lady Bird Deeds, wills, and more with the Law Office of Jason D. Berger, P.A.

Jason D. Berger is an experienced estate planning attorney that helps residents throughout the Treasure Coast develop all-encompassing estate plans, ensuring loved ones are taken care of after you pass away. We can help with estate planning and administration, as well as elder law. Call our office at 772-403-5880 or request an appointment here.
Call to schedule a night or weekend appointment.
(772) 403-5880
"Exceptional attorney and litigator! I hired Mr. Berger to represent me in family court in regards to child custody. The results were astonishing and I got more than I ever could have hoped for. If you need a lawyer that will litigate your case at trial Mr. Berger is the only Attorney I would ever use. In fact, I would want him to represent me in a legal matter family or not. Mr. Berger is the most honest and effective attorney I have ever met. I have hired several lawyers in the past and none delivered what they said they would. Mr. Berger never promised me anything or told me He would get me this or that. He did his job went above and beyond and I will always be grateful for what he has done for me."

 - Steven Connor Cornrich
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