By State (5)
Currently valid in the following states:
Transfer on Death Deed (TODD) – Performs the same function as a lady bird deed under a different name (legal in 33 States).
Main Benefits
- Avoids Probate. Transfers directly to the beneficiaries after death.[2]
- Medicaid Planning. Protects the property from Medicaid recovery.[3]
- Right to Use. Use the property however the owner wants.[4]
- Revocable. Can be changed or terminated at any time.[5]
- Sale or Lease. To lease or sell the property while retaining all proceeds.[6]
- Step-up Basis. Beneficiary can use the property’s value at the grantor’s time of death (meaning they pay capital gains based on that stepped-up value.)[7][8]
How to File a Lady Bird Deed
2. Fill in the Form
- Florida – Lady Bird Deed (Enhanced Life Estate)
- Michigan – Lady Bird Deed (Enhanced Life Estate)
- Texas – Lady Bird Deed (Enhanced Life Estate)
- Vermont – Lady Bird Deed (Enhanced Life Estate)
- West Virginia – Lady Bird Deed (Enhanced Life Estate)
Contents (must include):
- Grantor’s Name and Address
- Grantee’s Name and Address
- Preparer’s Name and Address (if applicable)
- Property Description (property address and legal description)
4. Filing with Recorder
To be made public, a lady bird deed must be filed with the respective local recording office. The grantor should bring a blank check or contact the recorder for the filing fees (usually based on the number of pages).
Deed Recording Offices
- Florida – Court Clerk & Comptroller’s office[15]
- Michigan – Registry of Deeds office[16]
- Texas – County Clerk’s office[17]
- Vermont – Town Clerk’s office[13]
- West Virginia – County Clerk’s office[14]
Sample
Sources
- Texas State Law Library: What is a Lady Bird deed?
- Michigan BAR: Ladybird deeds: Key features and uses
- MedicaidLongTermCare.org – Lady Bird Deeds and Protecting a Home from Medicaid Estate Recovery
- National Center on Law & Elder Rights: Heirs Property (page 26)
- South Carolina – Enhanced Life Estate Deed Act – Section 62-6-520(1)
- Michigan Dept. of Treasury – Principal Residence Exemption Guidelines (Page 10)
- Broward BAR: Estate and Elder Law Planning with Lady Bird Deeds (Page 2)
- IRS.Gov | Is money received from the sale of inherited property considered taxable income?
- Florida Statute § 689.01
- Florida Statute § 695.03
- Michigan Section 565.201(1)(c)
- Texas Section 12.001(a)
- Vermont 27 § 341(a)
- West Virginia § 39-1-2
- Florida Statute § 695.11
- MCL Section 565.201(1)
- Texas Section § 11.001(a)