Not long ago, a Riverview couple sat in my office, worried they would have to choose between qualifying for Medicaid someday and leaving their home to their children. They had heard about something called a lady bird deed from a neighbor but were not sure if it was real or too good to be true. It is very real, and for many Florida homeowners, it is one of the most useful planning tools that almost nobody outside the legal world talks about.
What exactly is a lady bird deed?
A lady bird deed, formally known as an enhanced life estate deed, lets you transfer your home to your chosen beneficiaries at your death while keeping complete control during your lifetime. Unlike a traditional life estate deed, you can sell the property, mortgage it, or change your mind entirely without asking anyone’s permission. When you pass away, the home transfers automatically to the people you named, and it never goes through probate.
How does a lady bird deed protect your home from Medicaid estate recovery?
This is where the nuance matters. Under current Florida law, Medicaid can only seek repayment from your probate estate after you pass away. Because a properly drafted lady bird deed passes your home outside of probate, the property is generally beyond the reach of Medicaid estate recovery. Signing a lady bird deed is also not considered a gift for Medicaid eligibility purposes, so it does not trigger the five-year lookback period the way an outright transfer to your children would.
Is a lady bird deed better than a living trust?
Not necessarily, and this is where do-it-yourself planning gets people in trouble. A lady bird deed only covers your home. It does nothing for your bank accounts, investments, or other property. It also cannot build in protections if a beneficiary passes away before you, is going through a divorce, or receives government benefits that an inheritance could disrupt. For some Riverview families, a lady bird deed paired with simple documents is a perfect fit. For others, a living trust does the job better. The right answer depends on your family, your assets, and your goals.
Can you create a lady bird deed yourself?
I would strongly caution against it. The deed language must be precise, homestead rules add another layer of complexity, and an error may not be discovered until after you are gone, when it is too late to fix. This is one document where an experienced elder law attorney earns their fee many times over.
If you own a home in Riverview or anywhere in Hillsborough County and want to know whether a lady bird deed belongs in your estate plan, I am happy to walk you through your options. Call the Law Offices of Laurie E. Ohall at (813) 438-8503 to schedule a consultation, and let’s make sure your home ends up exactly where you want it.