What Is a Lady Bird Deed? How It Works, States, Pros and Cons
Lady bird deeds automatically transfer property to beneficiaries without probate, but they're limited to five states.
Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.
The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.
Updated · 1 min read
Written by
Lead Writer & Content Strategist 
Edited by
Managing Editor 
A lady bird deed, also called an enhanced life estate deed, lets you pass your property down without going through probate. A lady bird deed can also keep property in the family without sacrificing Medicaid eligibility or subjecting the asset to state efforts to recover Medicaid costs after you die.
However, lady bird deeds are available in only five states: Florida, Texas, Michigan, Vermont and West Virginia . It’s a popular transfer method in these states, though, because you can revoke or change a lady bird deed at any time, unlike a standard life estate deed.
» Need a pro to help? See our picks for the year's best financial advisors
How a lady bird deed works
Lady bird deeds divide the ownership of your home into two parts: during your life and after your death.
- Control during life: You, the life tenant of the property, do what you wish with the home. Unlike standard life estate deeds, you can change your mind anytime, including selling or mortgaging the property, without needing permission from your beneficiaries.
- Automatic transfer at death: The beneficiary or beneficiaries you named in the deed, who can be a person or a trust, inherit the property automatically. They may be called remainder beneficiaries.
Pros and cons of a lady bird deed
Pros
Helps avoid probate.
May cut property taxes.
May avoid federal gift tax.
Cons
Available in only five states.
Property taxes may be higher for the beneficiary.
Advantages of a lady bird deed
Avoid probate. Lady bird deeds make the property no longer subject to probate when the owner dies. Probate can be an expensive, time-consuming process in some cases.
May cut property taxes. Some states where the lady bird deed is available cap the degree to which property tax assessors can increase a property’s taxable value . However, this cap may reset if the property transfers (such as through a sale), so setting up a lady bird deed that transfers property upon your death can keep you from losing this tax benefit.
Avoid federal gift tax. When you give property to someone else, such as your adult child, it may count as a gift and you may have to file a gift tax return with the IRS (in some cases you may also have to pay a gift tax). Lady bird deeds don’t transfer the property until your death, which helps avoid triggering gift tax rules.
Disadvantages of a lady bird deed
Available in only five states. Lady bird deeds are currently used only in Florida, Texas, Michigan, Vermont and West Virginia.
Property taxes may be higher for the beneficiary. States may increase the taxable value of a property when it transfers to your beneficiary when you die. Thus, the beneficiary of a lady bird deed might be hit with higher property taxes once they inherit the property. Some trusts may help avoid this.
Lady bird deed Medicaid benefits
Lady bird deeds can help the owner maintain Medicaid eligibility. If you transfer property to someone else in the five years before applying for Medicaid, Medicaid might still count that property as your asset and you may not qualify for full benefits. Lady bird deeds aren't considered a transfer for Medicaid purposes and thus may not affect your eligibility.
Prevent property from being used to repay Medicaid benefit costs. U.S. federal law allows states to claim a person’s assets after their death to recover Medicaid costs for long-term care. In states where lady bird deeds are available, the property doesn’t count as part of your estate and isn’t subject to the Medicaid estate recovery plan, or MERP .
How do you set up a lady bird deed?
Proper setup for a lady bird deed varies depending on the state. Typically, you’ll include a legal description of the property, the grantor’s and beneficiary’s names, and confirm that the grantor reserves lifetime rights to sell the property.
You may need to get the document notarized, then registered and filed with your county registrar of deeds.
Alternatives to a lady bird deed
If you don't live in one of the five states where lady bird deeds are available, you’ll need a different method to transfer your property. Here are a few options:
- Transfer-upon-death, or TOD, deeds are available in many states and work similarly to lady bird deeds. Unlike lady bird deeds, they allow contingent beneficiaries.
- Revocable living trusts can be more complex and expensive than a lady bird deed, but they can still help your estate bypass probate while retaining control over the asset during your life.
- Life estate deeds are more widely available than lady bird deeds and still bypass probate, but they require your beneficiaries’ permission to make any changes.
- Wills can include property transfers, but they usually have to go through probate after your death.
- Quitclaim deeds are a fairly simple property transfer method, but they don’t guarantee property ownership, and they transfer property while the owner is still alive.
Frequently Asked Questions
Why is it called a lady bird deed?
The technical name for a lady bird deed is an enhanced life estate deed. The “lady bird” nickname may have been a reference to U.S. first lady Claudia “Lady Bird” Johnson, though it allegedly originated from a Florida attorney's fictitious cast of characters used to demonstrate elder law, which included the name Lady Bird, according to the Michigan Bar Journal.
Next steps
Article sources
NerdWallet writers are subject matter authorities who use primary,
trustworthy sources to inform their work, including peer-reviewed
studies, government websites, academic research and interviews with
industry experts. All content is fact-checked for accuracy, timeliness
and relevance. You can learn more about NerdWallet's high
standards for journalism by reading our
editorial guidelines.
- 1. American Council on Aging. How Lady Bird Deeds Protect a Medicaid Recipient’s Home for Their Loved Ones. Accessed Oct 5, 2025.
- 2. Florida Bar Journal. Designing Trust Systems for Florida Residents: Planning Strategies, Things You Should Know, and Traps for the Unwary. Accessed Oct 5, 2025.
- 3. Medicaid.gov. Estate Recovery. Accessed Oct 5, 2025.
Compare online will makers
Advertisement| Company |
Nerdwallet
Rating |
Price
(one-time) |
Price
(annual) |
Access to
attorney support |
|---|---|---|---|---|
| Ease of use  Trust & Will - Will on Trust & Will's website | Will: one-time fee of $199 per individual or $299 for couples. Trust: one-time fee of $499 per individual or $599 for couples. | $19 annual membership fee. | Yes | |
| Digital Assets  GoodTrust on GoodTrust's website | $149 for estate plan bundle. Promotion: NerdWallet users can save up to $10. | $39 | No | |
| State-specific legal advice  LegalZoom - Last Will on LegalZoom's website | Will: $99 for Basic, $249 for Premium with attorney assist. Trust: $399 for Basic, $549 for Premium with attorney assist. | $199 per year for attorney assistance after the first year. | Yes | |
| Comprehensive services  Nolo’s Quicken WillMaker - WillMaker on Nolo's website | $109 to $219 | $39 per year to make changes after the first year | No |
AD Advertisement
Get matched to a financial advisor for free with NerdWallet Advisors Match. Find an advisor for free
AD Advertisement
Get matched to a financial advisor for free with NerdWallet Advisors Match. Get started
AD Advertisement