Choosing between a Lady Bird deed and a trust in Florida can have a major impact on your property, costs, and long-term planning. While both options help avoid probate, they work very differently — and choosing the wrong one can lead to unnecessary costs or gaps in protection.
Key Differences at a Glance
| Lady Bird Deed | Living Trust | |
|---|---|---|
| What it covers | Real estate only | Real estate, bank accounts, investments, and more |
| Ongoing management | None | Yes — assets must be transferred in; beneficiaries updated over time |
| Probate avoidance | Yes | Yes, when properly funded |
| Medicaid protection | Strong — home bypasses estate recovery | Limited — may not protect from estate recovery |
| Control during lifetime | Full — sell, refinance, or change beneficiary at any time | Full if revocable |
| Incapacity planning | No | Yes — successor trustee manages assets |
Cost Comparison
| Cost Item | Lady Bird Deed | Living Trust |
|---|---|---|
| Attorney drafting fees | $600–$1,000 | $1,500–$3,500+ |
| Recording fees | $10 first page / $8.50 per additional page | Varies per asset transferred |
| Ongoing updates | Minimal | $300–$1,000 per amendment (e.g., $300–$500 to change beneficiaries) |
| Asset transfer fees | None | Additional paperwork and fees for each asset moved into the trust |
Choosing the wrong option can result in higher costs, unnecessary complexity, or loss of key protections.
Control and Flexibility
Both options allow you to maintain control of your property while you’re alive, but they work differently in practice.
With a Lady Bird deed, you retain full ownership of your home. You can rent it out, refinance, sell it, or change your beneficiary at any time — with no ongoing management requirements.
A revocable living trust also allows full control. You can buy, sell, and manage assets inside the trust and change terms or beneficiaries as needed. The key difference is scope — a trust covers multiple asset types and dictates how all of them are managed after your death, not just your home.
Asset Coverage
A Lady Bird deed only applies to real estate — typically your primary residence. It doesn’t cover bank accounts, personal property, or investments.
A living trust can include many types of assets:
- Real estate
- Business interests
- Investment accounts
- Bank accounts
This makes a trust a more complete estate planning tool — all your assets in one place, with full control over how they’re distributed.
Medicaid Planning Differences
If a Florida resident receives Medicaid long-term care benefits, the state may seek to recover the money spent on their care after death — known as Medicaid estate recovery.
See Lady Bird Deed & Florida Medicaid for a full breakdown.
Here’s how each option compares for Medicaid planning purposes:
- Lady Bird deed. Your home transfers directly to a beneficiary and never becomes part of your personal estate — so it isn’t subject to estate recovery. This makes Lady Bird deeds one of the most effective Medicaid planning tools available for your home.
- Standard revocable trust. For Medicaid purposes, a standard revocable trust is considered part of your estate and may not protect your home from estate recovery. Advanced trust strategies can provide additional protection, but they require close consultation with an experienced attorney.
Complexity and Setup
Setup and ongoing management look very different between these two options:
Lady Bird Deed
- Drafted, signed, and recorded with the county — straightforward process
- No ongoing management required after recording
- Home passes automatically to your beneficiary at death
- Easy to revoke or update at any time
Living Trust
- Requires creating the trust document, naming a trustee, and transferring each asset into the trust
- Every asset transfer may involve additional paperwork and fees
- Assets not moved into the trust may still go through probate
- Requires ongoing management — beneficiaries, terms, and assets need to be updated as life changes
When a Lady Bird Deed May Be the Better Choice
A Lady Bird deed tends to work best in simpler situations. Consider it if:
- Your Florida home is your primary or only significant asset
- You want to avoid probate without the cost or complexity of a trust
- You’re concerned about needing Medicaid later in life — the deed won’t be treated as a completed gift, protecting you from estate recovery
- You want to stay in full control of your home with no ongoing administrative burden
When a Trust May Be the Better Choice
A living trust is better suited for more complex situations. Consider it if:
- You own multiple properties or have significant assets beyond real estate
- You want to control how all of your assets are distributed — not just your home
- You want incapacity planning — a successor trustee can manage your assets if you become unable to do so
- Your estate planning goals are likely to change significantly over time
Frequently Asked Questions
Which is cheaper, a Lady Bird deed or a trust?
A Lady Bird deed is usually much cheaper — it’s simpler to create and requires no ongoing management.
Do both options avoid probate in Florida?
Yes. When used correctly, both a Lady Bird deed and a trust can help you avoid probate in Florida.
Can I use both a trust and a Lady Bird deed?
Absolutely. Some people use a Lady Bird deed for their home and a trust for their other assets — a practical combination for many Florida homeowners.