In Texas estate planning, a Lady Bird Deed—also called an enhanced life estate deed—can be a powerful, flexible tool for families who want to transfer real estate outside probate without giving up control during life. Many Texans are surprised to learn they can plan ahead to protect the family home and other property while keeping full ownership rights.
In this blog, we’ll explain what makes Lady Bird Deeds unique, explore how they compare with Transfer on Death (TOD) Deeds, and outline why both are worth considering when planning to pass down your home or other real estate.
What Is a Lady Bird Deed?
A Lady Bird Deed allows a property owner to keep complete control of their property during life while naming beneficiaries who will automatically receive it upon death. Unlike a traditional life estate deed, the owner doesn’t need the future beneficiaries’ permission to sell, lease, mortgage, or even revoke the deed entirely. This means the owner retains practical freedom and flexibility to manage the property as they wish, making Lady Bird Deeds especially appealing to those who want to plan ahead for the next generation without sacrificing control during their lifetime.
Benefits of Using a Lady Bird Deed
Lady Bird Deeds offer several important advantages for Texas families:
- Avoid probate: Property passes directly to named beneficiaries without going through the probate process, which saves time and costs.
- Retain control: Owners keep full rights to live in, sell, or refinance the property during life.
- Medicaid protection: Properly structured Lady Bird Deeds can help protect the home from Medicaid estate recovery after death.
- Cost-effective: They’re often simpler and less expensive than setting up a trust for the same purpose.
For many families, this combination of flexibility and protection makes a Lady Bird Deed an attractive part of an estate plan.
Transfer on Death (TOD) Deeds in Texas
A Transfer on Death (TOD) Deed is another option under Texas law that lets property owners name beneficiaries to receive real estate directly upon death, avoiding probate in much the same way as a Lady Bird Deed. However, TOD Deeds typically offer less flexibility to revoke or modify terms once signed, depending on how they’re drafted. While both tools simplify the transfer of property, Lady Bird Deeds are often favored when Medicaid planning or maximum lifetime control of the property is a priority.
Lady Bird Deeds vs. TOD Deeds: Key Differences and Choosing the Right Tool
When deciding between a Lady Bird Deed and a TOD Deed, consider:
- Control during life: Lady Bird Deeds generally let the owner sell, change, or revoke the deed freely, while TOD Deeds might have more limitations.
- Planning needs: Lady Bird Deeds are often used when Medicaid eligibility or estate recovery protection is a concern. TOD Deeds can be a simpler choice if the main goal is avoiding probate.
- Family and property considerations: Each family’s situation is unique, and the best choice depends on factors like existing mortgages, the owner’s health, and family dynamics.
An experienced estate planning attorney can help evaluate which deed—or combination of planning tools—best meets your needs.
Don’t Wait to Protect Your Family’s Home
Taking the time to plan now can save your loved ones from stress, delays, and financial loss later. Whether a Lady Bird Deed, a TOD Deed, or another option is right for you, the best plan starts with expert guidance.
Contact The Mundheim Firm today at 817-479-0076 or through our online contact form to discuss how to protect your family’s home and ensure your wishes are honored.