Insights from The Orlando Senior Help Desk: What Is a Lady Bird Deed?

A Lady Bird deed in Florida is a legal form that transfers property upon death inexpensively and without probate. A Lady Bird deed allows the current property owner to use and control the property during the owner’s lifetime, while the property automatically transfers upon death to designated beneficiaries.

In Florida, a Lady Bird deed is also called an enhanced life estate deed. To be valid in Florida, a Lady Bird deed must include:

Grantor — The current owner of the property. This person is splitting their fee simple legal interest in the property into an enhanced life estate and a remainder interest.

The grantor must sign the lady bird deed in the presence of two witnesses and a notary.

Enhanced life estate — The power to control the property during lifetime.

Remainder beneficiary — The person who will inherit the property after the owner’s death.

Legal description — A formal description used to identify the property.

Homestead provision. For homestead properties, a paragraph that allows the owner to keep the homestead exemption.

Homestead Provision

Most people use a This person is splitting their fee simple legal interest in the property into an enhanced life estate and a remainder interest.

deed to transfer their homestead to their children. When doing so, it is critical to maintain the property’s homestead exemption.

To maintain the homestead exemption on the property, the lady bird deed should state that the property will remain the life tenant’s homestead.

Advantages of a Lady Bird Deed

A Lady Bird deed allows a property owner to transfer property upon death while avoiding probate. The deed is inexpensive, revocable, and simple compared to a trust. The advantages of lady bird deed include:

Avoids probate. A lady bird deed allows a property to transfer on death to named beneficiaries without probate.

Low cost. A lady bird deed can be obtained for a relatively low cost compared to a more complicated and expensive living trust.

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.

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

Disadvantages to lady bird deeds in Florida include:

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.

Constitutional Restrictions. A person cannot use a Lady Bird deed to disinherit a spouse or minor child.

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.

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 person.

Despite the disadvantages, people often use lady bird deeds in Florida as a simple, inexpensive way to transfer their home upon death without probate.

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The Orlando Senior Help Desk (407-678-9363) helps thousands of callers navigate their way through the daunting senior maze, alleviating caregiver stress while giving advice on all types of elder issues. http://www.OrlandoSeniorHelpDesk.org.