Before you develop an estate plan with your estate and probate lawyer, there are many considerations. Chief among them is how you will transfer your assets, including your home.
Because estate plans, in our opinion, are not “one size fits all,” a number of strategies may achieve the outcome that suits you best.
Which brings up the question, should you use a Lady Bird Deed or a Revocable Living Trust (“trust”) to transfer your home?
As always, the answer depends on your goals and particular circumstances. Working with an experienced attorney will ensure your wishes are followed and your loved ones protected.
Key Takeaway (in 60 seconds)
- A well‑drafted Lady Bird Deed moves one piece of Florida real estate outside probate for approximately ≈ $450 – $900 total cost.
- A Revocable Living Trust costs more to establish—typically $1,800 – $3,500—but shields all retitled assets and offers privacy, staggered distributions, and creditor buffers.
- Neither tool is universally “better.” The deed is efficient for a single homestead; the trust shines when multiple assets, minor beneficiaries, or complex family dynamics are involved.
What Is a Lady Bird Deed and What Can It Do?
A Lady Bird Deed—also known in Florida as an enhanced life estate deed—is a legal document that allows an individual to create a life estate in real property and then transfer that property to heirs at death.
Where Lady Bird Deeds are allowed (Florida, Michigan, Texas, Vermont, West Virginia), they can be helpful in avoiding probate. The owner keeps full control during life; at death, title passes instantly to the named beneficiaries—no court process required.
Probate, as we have noted before, is the legal process by which a court distributes a decedent’s assets. If you die intestate (without a Last Will and Testament (“Will”), or die owning property that does not pass outright to a named beneficiary upon your death, those assets must go through the time-consuming and expensive process of probate. So, avoiding probate is a good thing.
In Florida, a Lady Bird Deed can be a simple and cost-effective way to transfer a homestead without having to give up any of the homestead protections. It must, however, be drafted properly.
Although a Lady Bird Deed creates a life estate in the property owner, don’t confuse it with a deed that creates an ordinary life estate interest.
Unlike an ordinary life estate deed, the beneficiaries or remaindermen under a Lady Bird Deed have no vested interest in the property during the owner’s lifetime. The property owner under a Lady Bird Deed can decide at any time to deed the property back to himself/herself. In other words, a Lady Bird Deed is revocable.
Also, the property owner can freely change the beneficiaries at any time prior to his/her death. Finally, in Florida, the property owner has no duty to maintain the real property for the beneficiaries as he does under an ordinary life estate deed.
How Does a Lady Bird Deed Compare to a Revocable Living Trust
Like anything, the Lady Bird Deed has its advantages and disadvantages.
Briefly, some of the advantages of a Lady Bird Deed are:
- It avoids probate
- It generally allows you to keep your homestead protections
- It is low cost
- It is revocable (so you can change your mind and deed the property back to yourself)
While the Lady Bird Deed has its specific advantages, there are other estate planning tools —for example, the Revocable Living Trust (“trust”) —that may be just as helpful.
Trusts are flexible estate planning tools.
Like a Lady Bird Deed, a trust avoids probate. Unlike a Lady Bird Deed, however, the assets that can be in a trust are more than just the family home. So, for those who have extensive assets or want to protect more than just the family home, a trust can be a good estate planning tool to use.
Trusts can also be written so as to provide protection against creditors for the named beneficiaries of the trust (other than the settlor, that is).
On the other hand, moving a homestead to a trust may cause you to lose your homestead protections if not done properly. Clearly, this is something you should discuss with your estate attorney.
Lady Bird Deed vs. Revocable Living Trust
| Feature | Lady Bird Deed | Revocable Living Trust |
|---|---|---|
| Typical Up-Front Cost | $450–$900 + recording fee | $1,800–$3,500 setup |
| Probate Avoidance | Yes (for that property) | Yes (for all retitled assets) |
| Control During Life | Owner can sell, refi, or change beneficiaries without consent (LegalClarity) | Settlor-trustee controls assets |
| Medicaid Friendly? | Transfer occurs after death; no 5-year look-back (Teach Me! Personal Finance) | Neutral; trust can embed Medicaid sub-trusts |
| Privacy | Recorded deed—public | Trust agreement remains private (LegalClarity) |
| Mortgage Considerations | No lender consent needed | No lender consent needed |
| Contest Risk | Same as any deed (capacity, undue influence) | Trust contests handled in probate court |
Advantages of a Lady Bird Deed—With Caveats
Why clients choose it
- Avoids probate at a fraction of trust cost
- Allows you to keep your homestead tax break and creditor protection
- It is revocable so you can change your mind and deed the property back to yourself
Points to verify
- Remainder beneficiaries’ divorces or creditor claims can cloud title.
- If you refinance or obtain a reverse mortgage, the lender may require a new deed.
- Some mortgage agreements contain a due‑on‑sale clause. The Garn‑St Germain Act limits enforcement, yet lenders can still demand notice.
When a Revocable Living Trust Is the Better Fit
- Multiple Properties or States – A single trust sidesteps ancillary probate outside Florida.
- Minor, Spend‑thrift, or Special‑Needs Beneficiaries – The trustee can manage staggered distributions and creditor shielding.
- Desire for Privacy – Unlike recorded deeds, trust terms remain off the public record.
- Coordinating Non‑Real‑Estate Assets – Investment accounts, LLC interests, and life insurance can all flow through one instrument.
Cost Showdown: Deed vs Trust vs Probate
| Method | Typical Out-of-Pocket Today | Future Transfer Cost |
|---|---|---|
| Lady Bird Deed | $450–$900 drafting & recording | Minimal—file Affidavit of Death |
| Revocable Trust (+ Deed) | $2,500 average package | Professional fees, but minimal delay |
| Full Probate | Court filing $345–$400 + 1–3% attorney fee on first $1M | 9–18 months delay; professional fees |
Frequently Asked Questions (People‑Also‑Ask)
Does a Lady Bird Deed override my will?
Yes. The deed controls that property regardless of will terms.
Can a Lady Bird Deed be contested?
Yes, on traditional deed grounds—capacity, fraud, or undue influence.
Will my mortgage company call the loan?
No
Does the deed affect Medicaid eligibility?
No. Ownership passes after death, so it does not breach the 5‑year look‑back.
Is the trust more expensive in the long run?
Up‑front, yes; long‑term it saves if you hold multiple assets or anticipate probate across states.
Which Tool Is Better for You?
Everyone’s situation is unique. Estate plans can combine trusts and Lady Bird Deeds—for example, using the deed to move the homestead into an existing revocable trust (Trust & Will). Determining the right blend requires a fact‑driven conversation with your attorney.
Feel free to explore our visual guide for a quick comparison between a Lady Bird Deed and a Revocable Trust.
To receive a complimentary copy of our infographic highlighting the distinctions, click on the link here and fill out the form. Your free infographic will be promptly sent to the email address you provide.
Talk to Our Estate Planning Attorneys
Our team here at SJF Law Group works hard to ensure that your wishes will be followed, and your loved ones taken care of when you are gone. Our estate planning lawyers expertly guide individuals and families through the complex probate process and capably handle all aspects of the creation, administration, and settlement of estates and trusts. When you work with our estate planning attorneys at SJF Law Group, you get more than just an estate plan: you get peace of mind.
As trusted probate and estate planning lawyers, we serve individuals and families in the vibrant communities of Plantation, Fort Lauderdale, Boca Raton, West Palm Beach, and Miami, FL. We are also pleased to offer the options of both in-person and virtual appointments throughout Florida to make our services accessible no matter where you are located.
If you want to discuss your specific situations with one of our estate planning lawyers, do not hesitate to reach out to our law firm at 954-580-3690. You can also fill out our contact form.