Lady Bird Deeds vs Revocable Trusts: Which Is Better for Avoiding Probate in Florida?
- Both a Florida Lady Bird Deed (enhanced life estate deed) and a Revocable Living Trust (RLT) can avoid probate if properly established.
- Lady Bird Deed = simple, low-cost way to transfer a homestead or single Florida property at death while you keep full control during life.
- Revocable Trust = broader, more flexible plan that avoids probate for all assets you fund into it, adds incapacity management, and handles complex distributions.
- If you only need to pass one Florida home to one or a few beneficiaries, a Lady Bird Deed may be enough. If you want comprehensive planning, privacy, or multi-state property coverage, a Revocable Trust is usually a better option.
When it comes to protecting your home and passing property to loved ones, most Floridians share the same goal: avoiding probate. Probate can be a time-consuming, public, and expensive process. Two of the most common tools for achieving this goal are the Lady Bird Deed (also known as an enhanced life estate deed) and the Revocable Living Trust. Both have advantages, but the right choice depends on your unique family situation and estate planning goals.
What Is a Lady Bird Deed?
A Lady Bird Deed is a special type of deed recognized in Florida that allows you to transfer real estate automatically upon your death while keeping full control during your lifetime. You can live in the property, sell it, refinance it, or even change who inherits it without needing anyone’s consent. Upon your passing, ownership transfers directly to your named beneficiaries without requiring probate.
Why Floridians Like Lady Bird Deeds
- Avoids probate on the deeded property.
- You keep homestead protections (exemptions and Save Our Homes cap) while living at the property.
- Simple and cost-effective compared to a full trust plan.
- Under current federal tax law, the property often receives a step-up in basis at death (helpful for capital gains if beneficiaries sell)—but discuss your facts with an attorney and tax advisor.
Limitations
- Covers only the specific property named in the deed.
- Not ideal for complex family situations, such as blended families or beneficiaries with special needs.
- Does not provide incapacity planning if you become unable to manage your affairs.
What Is a Revocable Living Trust?
A Revocable Living Trust is a legal document that holds title to your assets and provides instructions for their management during your lifetime and distribution after your death. You typically act as your own trustee while you are well, and a successor trustee takes over if you become incapacitated or after your death.
Benefits of a Revocable Trust
- Avoids probate for all assets properly titled in the trust.
- Provides clear instructions for incapacity, avoiding the need for guardianship.
- Keeps your estate plan private, since it is not filed with the court.
- Allows detailed planning, such as holding funds for children, protecting beneficiaries from creditors, or managing out-of-state property.
Limitations
- Requires up-front work to create and “fund” the trust by transferring assets into it.
- Higher initial cost compared to a Lady Bird Deed.
- Needs ongoing maintenance to stay effective.
Which Is Better for Avoiding Probate?
Both tools work, but they serve different purposes:
- A Lady Bird Deed may be the right fit if you own a single Florida home and simply want to pass it to your heirs without probate.
- A Revocable Living Trust is typically better if you have multiple properties, want a comprehensive plan, or need provisions for incapacity and complex family situations.
Because every family is different, it’s important to review your goals with an estate planning attorney who understands Florida homestead laws and probate procedures.
Common Questions
Does a Lady Bird Deed affect my property taxes?
No. You continue paying property taxes as usual, and your homestead exemption generally remains in place if you qualify.
Can a Lady Bird Deed be contested?
Like any estate planning tool, it can be challenged under claims such as undue influence or lack of capacity. Proper drafting and legal guidance can reduce the risk.
Do I still need a will if I use one of these tools?
Yes. A will serves as a safety net for assets not covered by your deed or trust, ensuring your wishes are carried out.
What happens if I own property in another state?
A Lady Bird Deed covers only Florida property. Out-of-state real estate often requires a trust to avoid additional probate proceedings.
Real-World Examples of Lady Bird Deeds
- Single homeowner, one homestead, adult child beneficiary: A Lady Bird Deed may be the most efficient way to avoid probate for the house. You’d still want a simple will and updated beneficiaries on accounts.
- Married couple, blended family, rental in another state: A Revocable Trust usually wins—clean probate avoidance across states, options to protect the surviving spouse and balance children from prior marriages, and incapacity coverage.
When in doubt, hire an estate planning attorney to model both scenarios for your facts and goals.
Why Work With an Estate Planning Attorney in Florida?
Deciding between a Lady Bird Deed and a Revocable Living Trust is not always straightforward. Florida’s homestead laws, spousal rights, and tax considerations make it critical to get professional advice. An experienced estate planning attorney in Spring Hill or New Port Richey can:
- Explain how each option fits your property and family situation.
- Draft the documents correctly so they hold up in court.
- Ensure beneficiary designations, deeds, and titles align with your overall plan.
- Provide ongoing guidance as your family, assets, and laws change.
A Lady Bird Deed and a Revocable Living Trust both achieve the goal of avoiding probate, but they do so in different ways. One may be simple and sufficient for your needs, while the other offers greater flexibility and protection. The best choice depends on your family, your property, and your long-term goals.
Disclaimer: This article provides general information only and is not intended as legal advice. Estate planning decisions depend on your specific circumstances. For personalized guidance, consult with an experienced estate planning attorney. Smith Cors Law serves clients in Spring Hill and New Port Richey and can help you determine which tool best fits your situation.
Gary Cors, a Florida native educated at USF and Stetson Law, has practiced wills, trusts, estates, probate, and real estate since 1999 while also teaching in Pasco-Hernando State College’s Paralegal Program.
