Lady Bird Deed vs. Living Trust in Florida: Which Avoids Probate Better?

If you own a home in Florida, you have probably heard two pieces of advice: “get a Lady Bird deed” and “put your house in a living trust.” Both keep your home out of probate. Both let you stay in full control while you are alive. So which one is right for you?

The honest answer is that it depends on what you own, who you are leaving it to, and what you are worried about. This guide compares the Lady Bird deed vs. living trust in plain language: how each one works, what each costs, the benefits and disadvantages of each, and which avoids probate better for different Florida families.

What Is a Lady Bird Deed in Florida?

A Florida Lady Bird deed, also called a Florida enhanced life estate deed, is a special deed that lets you keep full ownership and control of your real estate for life and then pass it automatically to the people you name when you die. Florida is one of only a handful of states that recognizes this type of deed.

How Does a Lady Bird Deed Work?

1. You sign a new deed that keeps a life estate for yourself with full powers, and names one or more remainder beneficiaries.
2. You record the deed with the clerk of court in the county where the property is located.
3. You keep complete control. You can live there, rent it, sell it, mortgage it, or change the beneficiaries, all without anyone’s permission. The beneficiaries have no rights while you are alive.
4. At your death, the property passes automatically to the named beneficiaries without probate. They typically record a death certificate and an affidavit to update the title.

A properly drafted Florida Lady Bird deed generally keeps your homestead exemption and Save Our Homes cap in place, is not treated as a completed gift, and allows your beneficiaries to receive a full step up in tax basis. Those tax details are covered in Lady Bird deed tax implications.

What Is a Living Trust in Florida?

A revocable living trust in Florida is a legal arrangement you create to hold your property during your lifetime. You usually serve as your own trustee, so you keep full control. You also name a successor trustee who takes over if you become incapacitated and who distributes your property after your death.

How Does a Living Trust Avoid Probate?

Probate only applies to property owned in your individual name at death. When you transfer your home and accounts into your trust, the trust owns them, not you personally. At your death there is nothing in your name for the probate court to handle, so your successor trustee simply follows your written instructions. This is why a living trust only avoids probate for assets that have actually been moved into it. The checklist in how to fund a revocable living trust in Florida explains how, and the guide on how a revocable living trust works in Florida covers the full picture.

Putting a house in a living trust requires recording a new deed that transfers the home to you as trustee. The steps, including what to do if you have a mortgage, are explained in should you put your house in a trust in Florida.

Lady Bird Deed vs. Living Trust: Side by Side

Benefits of a Lady Bird Deed

• Simple and low cost. It is a single deed, usually far less expensive than a full trust plan.
• Full control. You can sell, mortgage, or change beneficiaries without anyone signing off.
• Avoids probate on the property. The home passes automatically at death.
• Keeps homestead tax benefits. Your exemption and Save Our Homes cap generally stay in place.
• Medicaid friendly. Elder law attorneys often prefer a Lady Bird deed because it generally does not affect eligibility, and because the home passes outside of probate, it is not exposed to Florida’s estate recovery claim. The rules are explained in Medicaid estate recovery in Florida.
• Tax friendly. No gift tax filing is triggered, and beneficiaries usually receive a full step up in basis.

Disadvantages of a Lady Bird Deed

• Real estate only. It does nothing for bank accounts, investments, or other property.
• No help if you become incapacitated. If you need to sell the home while you are unable to act, your agent needs a durable power of attorney that clearly allows it, or your family may need a court guardianship.
• Property passes outright. You cannot hold the home for a young adult, release it in stages, or protect a beneficiary with debt or divorce issues.
• Minor beneficiaries create problems. A minor cannot sign to sell real estate, so a guardianship may be required.
• Co-owners must agree. If several children inherit, all of them must agree to sell, and one child’s creditors or divorce can affect the property.
• A beneficiary may die first. If the deed does not name backups, part of the property may end up in probate anyway.
• Homestead rules still apply. If you are married, your spouse generally must sign, and Florida restricts leaving your homestead away from a spouse or minor child. These rules are explained in Florida homestead law and estate planning.
• Title questions on non-homestead property. For rental or vacation property, some title companies ask for extra steps before insuring a sale after death.

Benefits of a Living Trust

• Covers everything you put in it, including your home, bank accounts, investments, and property in other states.
• Manages your affairs if you become incapacitated, without a court guardianship.
• Gives you control after death, such as holding money for children until a certain age, protecting a beneficiary, or providing for a spouse and then your children.
• Keeps your plan private, because the trust is not filed in court.
• Avoids probate in more than one state if you own real estate elsewhere.
• One set of instructions for your successor trustee, who you choose carefully using the guidance in how to choose a successor trustee in Florida.

Disadvantages of a Living Trust

• Higher cost than a Lady Bird deed or a simple will.
• More work. You must retitle your home and accounts, and keep new assets titled in the trust.
• Only works if funded. Assets left outside the trust still go through probate.
• No creditor protection by itself. A revocable trust does not shield your assets from your own creditors.
• Less favored for Medicaid planning than a Lady Bird deed in many situations.
• Refinancing can take an extra step with some lenders.

Lady Bird Deed Cost vs. Living Trust Cost

A Lady Bird deed is usually the less expensive option. It involves preparing and recording one deed, plus small county recording fees. A living trust costs more because it involves drafting the trust, a pour-over will, a new deed for the home, and help retitling accounts.

At The Schoonover Law Firm, both options are quoted as a flat fee in writing before any work begins, so living trust attorney fees and Lady Bird deed costs are known up front. Keep in mind that probate attorney fees under Florida’s guideline run roughly 3% of the estate’s value, so either option usually costs far less than the probate it prevents. The flat fee approach is explained in flat fee estate planning.

Which Avoids Probate Better?

For the home alone, both avoid probate equally well. The real question is what else you need to protect.

A Lady Bird Deed May Be Better If:

• Your home is your main asset, and your accounts already have payable on death or transfer on death beneficiaries.
• You want the simplest, least expensive way to pass the home.
• You or your spouse may need Medicaid for long term care.
• Your beneficiaries are responsible adults who get along.

A Living Trust May Be Better If:

• You have significant accounts or property in more than one state.
• You want someone to manage everything if you become incapacitated.
• You have minor children, young adult children, a blended family, or a beneficiary who needs protection.
• You want your plan to stay private.

Why Many Families Use Both

A Lady Bird deed and a living trust are not an either-or choice. One popular approach is a Lady Bird deed on the home that names your revocable living trust as the beneficiary. The home passes outside probate with the Medicaid and homestead advantages of a Lady Bird deed, and then lands in the trust, where your instructions control who receives it and when. Your bank and investment accounts can be held in or payable to the same trust.

Whichever route you choose, you still need a will as a safety net. The guide on whether a will avoids probate in Florida explains why a will alone is not enough, and the broader options are compared in how to avoid probate in Florida.

Frequently Asked Questions