A Lady Bird deed is a type of estate planning tool where a property owner conveys property to others while retaining a life estate, allowing them to live on and use the property. It differs from a standard life estate in that it allows the life tenant to sell, mortgage or deal with the property without consent from the remaindermen. While some states have invalidated this, Florida recognizes Lady Bird deeds as valid if the transaction is made in good faith. However, there is still some uncertainty around other actions like revoking the deed. A Lady Bird deed can be an effective tool if properly drafted but all potential consequences should be considered.

1. 99 Nesbit Street 33 S. Indiana Ave.
Punta Gorda, FL 33950 Englewood, FL 34223
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Newsletter Big City Solutions. Small Town Values.
April 2012 - Issue 1
Lady Bird Deeds
As an estate planning tool, the owner of real property may decide to
convey the property to his or her children or other individuals re-
serving a life estate. In that case, the original owner of the property
(the “life tenant”) retains the right to possess and occupy the prop-
erty during his or her life and upon the death of the life tenant the
property passes, without probate, to the children or other persons
named in the deed (the “remaindermen”).
Although this may be an effective method of avoiding probate, such
a conveyance has drawbacks. The life tenant cannot sell or mort-
gage the property without the consent and joinder of the remainder- Gary A. Kahle
men; the life tenant is responsible to the remaindermen for any acts
TEL 941.639.1158
that devalue the property; and the interests of the remaindermen
are subject to the claims of their creditors. EMAIL gkahle@farr.com
It is possible to avoid at least some of the drawbacks by use of an Gary is Board Certified by The
“enhanced life estate” deed, sometimes called a “Lady Bird deed” in Florida Bar in Real Estate. His
reference to published examples with Lady Bird Johnson as a party. practice focuses on real estate
and corporate and business
In a “Lady Bird deed” the life tenant specifically reserves the power law. Gary represents buyers
to sell, mortgage and otherwise deal with the property without the and sellers in residential and
consent or joinder of the remaindermen. Although the courts in commercial transactions,
some states have held such retained powers to be invalid, Florida issuance of title insurance,
recognizes Lady Bird deeds as valid with respect to a conveyance or commercial lending, real
encumbrance by the life tenant, without the consent or joinder of estate development and real
the remaindermen, provided that the transaction is bona fide and property litigation.
arm’s length for value.
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2. 99 Nesbit Street 33 S. Indiana Ave.
Punta Gorda, FL 33950 Englewood, FL 34223
TEL 941.639.1158 TEL 941.460.9334
F A R R , F A R R , E M E R I C H , H AC K E T T AND C A R R , P. A .  1924 FAX 941.639.0028 FAX 941.460.9443
Newsletter Big City Solutions. Small Town Values.
In the absence of Florida court rulings, however, uncertainty remains with respect to other actions
by the life tenant. The life tenant probably cannot revoke the Lady Bird deed and name new re-
maindermen; the deed may not be valid with respect to homestead property if the life tenant dies
with a surviving spouse or minor children; and a conveyance by the life tenant may not eliminate
judgment liens against a remainderman’s interest.
A Lady Bird deed is an effective estate planning tool only if it is properly drafted and all adverse
consequences are carefully evaluated.
This newsletter is for general information and education purposes only.
It is not offered as legal advice or legal opinion.
To the extent this message contains tax advice, the U.S. Treasury Department requires us to inform you that any advice in this letter is not intended
or written by our firm to be used, and cannot be used by any taxpayer, for the purpose of avoiding any penalties that may be imposed under the
Internal Revenue Code. Advice from our firm relating to Federal tax matters may not be used in promoting, marketing or recommending any entity,
investment plan or arrangement to any taxpayer.
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