Is a Lady Bird Deed Enough?

You’ve worked hard for your home. For many Florida families, it’s the most valuable asset they own — financially and emotionally.

Maybe a friend mentioned a Lady Bird Deed. Maybe you saw a video online claiming it avoids probate and protects your home from Medicaid. That’s all true.

But here’s what often gets left out of the conversation:

A Lady Bird Deed is a powerful tool — but it’s not a complete estate plan.

Let’s walk through what it does well, where it falls short, and why relying on it alone can unintentionally put your family at risk.

What a Lady Bird Deed Actually Does

A Lady Bird Deed (also called an Enhanced Life Estate Deed) allows your home to transfer automatically to your beneficiaries when you pass away — without going through probate.

That means:

• No court process for the home

• No probate delays

• No public proceedings

• Lower legal costs

  
  

Even better, you keep full control during your lifetime. You can:

• Sell the property

• Refinance it

• Take out a reverse mortgage

• Change beneficiaries

• Revoke the deed entirely

  
  

Unlike a traditional life estate, you don’t need your beneficiaries’ permission to make decisions.

If you’re unfamiliar with how probate works, you can learn more in our guide to Florida Probate Administration.

Why It’s So Popular for Medicaid Planning

One of the biggest advantages of a Lady Bird Deed in Florida is how it works with Medicaid planning.

Here’s why that matters.

When Medicaid pays for long-term care, the state may attempt to recover those costs after you pass away through a process called estate recovery.

If your home goes through probate, it may be subject to a claim.

But with a Lady Bird Deed:

• The property transfers outside probate

• Estate recovery typically cannot reach it

• Your family keeps the home

  
  

Even more importantly, creating a Lady Bird Deed does not trigger Medicaid’s five-year look-back period because you retain full ownership and control.

That makes it very different from gifting your home outright.

For more insight into protecting assets while planning for long-term care, read our article on Medicaid Planning in Florida.

The 5 Risks Most People Don’t Realize

Here’s where things get serious.

A Lady Bird Deed protects your home — and only your home.

It does not protect your entire estate.

1. It Doesn’t Cover Your Other Assets

Your deed does nothing for:

• Bank accounts

• Investments

• Retirement accounts

• Vehicles

• Personal belongings

If those assets aren’t properly planned, your family could still face probate.

2. It Offers No Incapacity Protection

Q: What happens if you suffer a stroke or develop dementia?

A: The Lady Bird Deed does nothing.

It only activates at death.

Without a Durable Power of Attorney and healthcare directives, your loved ones may need court approval to manage your finances or make medical decisions.

That process can be expensive and emotionally draining.

Learn more about comprehensive planning on our Florida Estate Planning page.

3. It Doesn’t Prevent Family Conflict

When your beneficiaries inherit your home, questions immediately arise:

• Should it be sold?

• Should it be rented?

• Should one child buy the others out?

  
  

Without written guidance, disagreements can escalate quickly — especially during a time of grief.

A complete estate plan provides clarity.

4. Life Changes — and So Should Your Plan

What if:

• A beneficiary passes away before you?

• A beneficiary gets divorced?

• A beneficiary develops creditor issues?

  
  

If the deed isn’t updated properly, your plan may fail — and probate could still happen.

5. Your Beneficiaries Receive No Asset Protection

When someone inherits property outright:

• Creditors can pursue it

• Divorce courts can divide it

• Lawsuits can attach to it

  
  

A trust can add layers of protection that a Lady Bird Deed simply cannot provide.

The Bigger Picture: Estate Planning Is a System

Think of your estate plan like a house.

A Lady Bird Deed is one solid wall — but you still need:

• A Will or Trust

• Durable Power of Attorney

• Healthcare documents

• Guardianship nominations (if applicable)

• Protection planning for vulnerable beneficiaries

  
  

When these tools work together, your family stays out of court and out of conflict.

When only one tool is used, gaps remain.

So, Is a Lady Bird Deed Worth It?

Absolutely — when it’s part of a comprehensive plan.

It’s one of the most effective ways to protect your Florida homestead from probate and Medicaid estate recovery.

But it’s not a substitute for thoughtful, coordinated planning.

At Tower Law Group, we begin with a Legacy Planning Session® to evaluate:

• What would happen if you became incapacitated tomorrow

• What would happen if you passed away tomorrow

• Where your current plan works

• Where it leaves your family exposed

  
  

From there, you can make informed decisions — not just sign a document because someone told you to.

Ready to Protect What Matters Most?

If you already have a Lady Bird Deed — or are considering one — let’s make sure it fits into a plan that truly protects your loved ones.

📞 Book a free 15-minute discovery call to explore how a Legacy Planning Session protects your whole family.