TAX & LEGAL GUIDE

Transfer on Death Deed in Florida (Lady Bird Deed): Complete Guide

Florida does not have a statutory Transfer on Death Deed in most cases, but it has a functionally equivalent instrument: the Enhanced Life Estate Deed, commonly called a "Lady Bird Deed." This estate planning tool lets you designate who inherits your property at death while keeping full control — including the right to sell — during your lifetime, and it avoids probate entirely.

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How a Lady Bird Deed Works in Florida

An Enhanced Life Estate Deed (Lady Bird Deed) transfers a remainder interest to named beneficiaries while retaining an "enhanced" life estate for the grantor. The "enhanced" part is critical: unlike a standard life estate, you retain the right to sell, mortgage, or change beneficiaries without the remaindermen's consent. At death, the property automatically passes to the named beneficiaries without going through probate — the beneficiary records an affidavit of death and the certified death certificate to take title. Florida courts and title companies have accepted Lady Bird Deeds for decades.

Tax Advantages of Lady Bird Deeds

For Florida Medicaid planning: a Lady Bird Deed allows the property to pass to heirs without probate, and many Florida Medicaid rules treat this as an exempt transfer for estate recovery purposes (though rules are complex and change — verify with an elder law attorney). For federal estate tax: the property is included in the estate at death (step-up in basis applies) — beneficiaries receive a stepped-up cost basis to date-of-death value, minimizing capital gains if they sell. For federal gift tax: because you retain control, transferring via Lady Bird Deed is NOT considered a completed gift during life — no gift tax return is required.

Selling After Receiving Property via Lady Bird Deed

If you inherit Florida property through a Lady Bird Deed (as a beneficiary after the grantor's death), selling is straightforward: record the affidavit of survivorship and death certificate with the county, then list and sell normally. Your basis is the fair market value at the date of death (stepped-up basis), which typically means little or no capital gains tax if you sell promptly after inheriting. You can use flat fee MLS to list the inherited property on the MLS for $99 and maximize sale proceeds.

FREQUENTLY ASKED QUESTIONS

Common Questions

Is a Lady Bird Deed the same as a Transfer on Death Deed?

Functionally yes — both achieve the same goal of avoiding probate while retaining control during life. Florida recognizes the Enhanced Life Estate (Lady Bird) Deed for this purpose. Some other states have a statutory Transfer on Death (TOD) Deed; Florida's mechanism is the Lady Bird Deed.

Can I sell a property I own under a Lady Bird Deed?

Yes — as the grantor/life tenant with enhanced rights, you retain the full right to sell during your lifetime without the beneficiaries' consent. The beneficiaries' remainder interest is extinguished if you sell the property during your lifetime.

Does a Lady Bird Deed affect my homestead exemption?

No — you retain homestead exemption and Save Our Homes cap as long as you continue to live in the property as your primary residence. The Lady Bird Deed transfer during life doesn't affect your ownership or tax status.

How much does a Lady Bird Deed cost in Florida?

Attorney fees: $300–$600 for a simple Lady Bird Deed. Recording fee: ~$10 for first page. Documentary stamp tax: exempt if nominal consideration. A small investment that eliminates probate costs ($3,000–$10,000+) and months of delay for your heirs.

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