Lady Bird Deed vs. Trust in Florida

A lady bird deed and a living trust both avoid probate and let the owner retain control during their lifetime. A lady bird deed is a single-purpose instrument that transfers one piece of real estate at death. A living trust is a broader tool that can hold multiple asset types, provide incapacity planning, and manage distributions over time. Which one to use depends on what the owner is trying to accomplish and how many assets are involved.

How Each One Works

A lady bird deed is an enhanced life estate deed recorded with the county. The owner names remainder beneficiaries who will receive the property when the owner dies. The owner retains full authority to sell, mortgage, or revoke the deed at any time. When the owner dies, title passes to the beneficiaries by operation of the deed. The beneficiaries record a death certificate with the county recorder’s office and the transfer is complete.

A revocable living trust is a written agreement in which the owner transfers assets to a trust, names themselves as trustee and primary beneficiary, and designates a successor trustee and future beneficiaries. The owner manages everything during their lifetime exactly as before. When the owner dies, the successor trustee distributes trust assets to the beneficiaries according to the trust terms. No probate is required for any asset held in the trust.

Comparison

Feature	Lady Bird Deed	Living Trust
Assets covered	One specific property	Any asset titled in the trust
Avoids probate	Yes, for that property	Yes, for all trust assets
Cost to create	$400 to $1,000	$1,500 to $4,500
Ongoing administration	None	Minimal (retitling new assets)
Privacy	Public record once recorded	Private document
Incapacity planning	No	Yes, successor trustee takes over
Stepped-up basis at death	Yes	Yes
Gift tax triggered	No	No
Beneficiary control after death	None, transfer is immediate	Trust can stagger distributions
Creditor protection after death	None for beneficiaries	Possible with spendthrift provisions
Out-of-state property	Only covers Florida real estate	Avoids ancillary probate in all states

When a Lady Bird Deed Is Enough

A lady bird deed is often the right choice for Florida homeowners whose primary estate planning goal is keeping their home out of probate. If the homeowner’s other assets pass through beneficiary designations on bank accounts, retirement accounts, and life insurance policies, the home may be the only asset that would otherwise require probate. In that situation, a lady bird deed accomplishes the goal at a fraction of the cost of a trust.

A lady bird deed is also appropriate when the owner wants a simple, immediate solution. The deed is executed, recorded, and finished. There is no trust to fund, no accounts to retitle, and no ongoing management obligation. If the owner acquires new assets later, those assets are not affected by the deed.

Owners who are single or widowed with adult children as beneficiaries are typical candidates. The deed transfers the home at death, the beneficiaries record a death certificate, and the process is complete without attorney involvement or court proceedings.

When a Living Trust Is the Better Choice

A living trust becomes the better option when the estate involves more than a single property. Homeowners who also have significant bank accounts, investment portfolios, or business interests need a tool that can hold all of those assets and distribute them without probate. A lady bird deed cannot do this.

Incapacity planning is another reason to choose a trust. A lady bird deed does nothing if the owner becomes unable to manage their affairs. The deed has no mechanism for someone else to step in and handle the property on the owner’s behalf. A living trust solves this problem because the successor trustee can manage all trust assets immediately upon the owner’s incapacity, without court involvement and without the need for a court-appointed guardian over the owner’s property.

Privacy matters for some owners. A lady bird deed is a public record, and anyone searching the county records can see the beneficiaries named in the deed. A trust agreement is a private document that is never filed with any government office.

Owners who want to control how beneficiaries receive assets after death also need a trust. A lady bird deed transfers the property immediately and unconditionally at death. A trust can hold assets for minor children until they reach a specified age, protect a beneficiary’s inheritance from the beneficiary’s own creditors through spendthrift provisions, or distribute assets in stages over time.

Florida residents who own real estate in other states should consider a trust to avoid ancillary probate. Without a trust, the estate must open a separate probate proceeding in each state where the deceased owned property. Transferring out-of-state real estate into the trust eliminates this problem. A lady bird deed can only transfer Florida real estate.

Using Both Together

A lady bird deed and a living trust are not mutually exclusive. Some Florida estate plans use both. The most common approach is to use a living trust as the primary estate planning instrument for financial accounts and other assets, while keeping the homestead property in the owner’s individual name with a lady bird deed naming the trust as the remainder beneficiary.

This approach has a practical advantage for married couples. Florida homestead property held in the owner’s individual name receives full constitutional homestead creditor protection. Some practitioners are concerned that transferring homestead to a revocable trust may affect the homestead creditor exemption, though Florida courts have generally held that property in a revocable trust retains its homestead character. Using a lady bird deed avoids this question entirely while still directing the home into the trust at death for centralized administration and distribution.

Naming the trust as the lady bird deed beneficiary also solves the predeceased-beneficiary problem. If named individuals are beneficiaries and one dies before the owner, the deed may need to be revised. If the trust is the beneficiary, the trust agreement controls the ultimate distribution, and changes are made by amending the trust rather than recording a new deed.

Homestead Considerations for Married Owners

Florida’s constitutional homestead restrictions affect both lady bird deeds and trusts. Article X, Section 4 of the Florida Constitution provides that a married homeowner cannot devise the homestead to anyone other than the spouse if the spouse survives. A married owner who wants to use a lady bird deed to transfer the homestead to children must have the spouse join in the deed and waive homestead rights.

A revocable trust faces a parallel constraint. If a married owner transfers the homestead into a revocable trust and the trust directs the property to someone other than the surviving spouse, the surviving spouse can challenge the distribution under the homestead provisions. The trust must either leave the homestead to the surviving spouse or obtain the spouse’s written waiver.

For married couples where both spouses want the home to pass to the surviving spouse and then to children, either tool works as part of a broader estate planning strategy. A lady bird deed can name the spouse as primary beneficiary with children as contingent beneficiaries. A trust can accomplish the same result through its distribution provisions.

Cost Comparison

A lady bird deed typically costs $400 to $1,000 in attorney fees plus county recording fees. A living trust typically costs $1,500 to $4,500 and includes the trust agreement, pour-over will, power of attorney, and health care directives. For homeowners whose only probate-avoidance need is the home, the lady bird deed saves $1,000 to $3,500 in upfront costs.

The cost comparison shifts for owners with multiple assets. Without a trust, probate fees on a $500,000 estate can reach $15,000 or more under Florida’s statutory fee schedule. A $3,000 trust that eliminates $15,000 in future probate costs is a favorable trade.