09/18/2026
What is a Lady Bird Deed?
A Lady Bird deed, also called an enhanced life estate deed, allows a homeowner to keep control of their home during their lifetime while naming who will receive it at death.
You generally keep the right to live in the home, sell it, refinance it, mortgage it, change the beneficiary, or revoke the deed without the beneficiary's permission.
If the deed remains in place when you die, the property can pass to the named beneficiary without going through probate.
Here's the important Medicaid distinction:
A traditional life estate gives the remainder beneficiary a present legal interest when the deed is signed. That can create Medicaid transfer-of-asset issues because the owner has given away an interest in the property.
A properly drafted Lady Bird deed is different. Because the homeowner retains broad powers over the property, including the ability to sell or revoke the deed, Florida Medicaid generally does not treat the deed itself as a completed gift that triggers the 5-year transfer penalty.
There can also be an estate-planning benefit at death. Because the property passes outside the probate estate, a properly structured Lady Bird deed may help keep the property outside Florida's probate-based Medicaid estate recovery claim. This is not an absolute guarantee, and individual circumstances matter.
There may also be a tax basis benefit: property inherited at death generally receives a new basis based on its fair market value at the date of death, subject to federal tax rules and exceptions.
Where are Lady Bird deeds recognized?
They are commonly recognized in Florida, Michigan, Texas, Vermont and West Virginia.
And remember: a Lady Bird deed only addresses the real estate described in the deed. Your other assets may need separate beneficiary designations, a will, trust, or other planning.
The bottom line: A properly drafted Lady Bird deed can allow a Florida homeowner to retain control of their home during life, pass it to a chosen beneficiary outside probate, and potentially avoid Medicaid transfer penalties associated with a completed lifetime gift.
Educational information only — not legal, tax, financial, or investment advice. Medicaid and estate-planning rules are complicated and can change. Speak with a qualified Florida elder-law or estate-planning attorney about your individual situation.
