A Lady Bird deed, formally an “enhanced life estate deed,” lets you keep complete control of your home during your life and pass it automatically to a loved one at your death, without probate. Texas is one of only a handful of states that recognizes these deeds, and for the right homeowner they are one of the simplest, most powerful planning tools available.
How a Lady Bird Deed Works
You, the owner, sign a deed naming who receives the property when you die. While you are alive, nothing changes: you can sell it, mortgage it, rent it, or revoke the deed entirely, with no one’s permission required. When you pass away, the property transfers directly to your named beneficiary, outside of probate, usually with just a death certificate and a simple affidavit filed in the county records.
Lady Bird Deed vs. Transfer on Death Deed
Both avoid probate and pass your home directly at death. The key differences:
| Lady Bird Deed | Transfer on Death Deed | |
|---|---|---|
| Legal source | Nonstatutory enhanced-life-estate deed recognized in Texas law and practice | Texas Estates Code Chapter 114 |
| Owner’s lifetime control | Broad control if expressly reserved in the deed | Statutorily preserves the owner’s right to transfer or encumber the property |
| Estate-creditor exposure | No specific Chapter 114 two-year procedure, but liens and other creditor remedies can still apply | Subject to Estates Code §114.106 if the probate estate is insufficient; generally a two-year limitations period |
| Texas Medicaid estate recovery | Generally outside MERP if the property passes outside probate | Expressly excluded from the probate estate for MERP purposes under §114.106(b) |
| Title underwriting | Depends on deed language, chain of title, and the underwriter | Depends on compliance with Chapter 114 and the underwriter’s requirements |
Neither is better across the board. The right choice depends on whether you have a mortgage, whether Medicaid planning matters, and how many beneficiaries you are naming. Compare all three options, including a revocable living trust, with our help.
Lady Bird Deeds and Medicaid Estate Recovery
If you may one day need Medicaid for long-term care, this matters. Texas only recovers Medicaid costs from assets that pass through your probate estate. Because a properly drafted Lady Bird deed transfers your home outside probate, the home is generally protected from the Texas Medicaid Estate Recovery Program.
The Catch: It Has to Be Drafted Correctly
A Lady Bird deed is not a form to grab online. If the wording is wrong or it is not recorded properly, the intended transfer can fail and your home can end up in probate anyway. We draft and record it as part of a coordinated plan.
Frequently Asked Questions
Does a Lady Bird deed avoid probate in Texas?
Yes. The home passes directly to your named beneficiary at death, outside the probate estate.
Will it protect my home from Medicaid recovery?
Usually yes. Because the home does not pass through probate, it is generally outside the reach of Texas Medicaid estate recovery. Your full plan should be reviewed to be sure.
Can I still sell or refinance my home?
Yes. You keep full control and can sell, mortgage, or revoke the deed at any time without the beneficiary’s consent. However, if you plan to sell your home, you should check with a trusted title company regarding their policies and procedures.
Lady Bird deed or transfer on death deed?
It depends on your mortgage, your Medicaid concerns, and your beneficiaries. We help you choose.
Talk With a Texas Estate Planning Attorney
Find out whether a Lady Bird deed fits your plan. Call 713-955-6182 or contact The De Leon Law Firm.