The Lady Bird Deed: The Best Way to Avoid Probate on Your Home

One of the biggest assets in an estate is real estate—and without proper planning, it can be stuck in probate for months (or even years). Fortunately, there’s an easy and effective way to avoid probate on your home:

Why You Should NOT Add Your Children to Your Deed

Some people think they can avoid probate by adding their children’s names to their home deed, but this can create major problems:

❌ Lawsuits & Creditors: If your child is sued, their creditors could go after your home since their name is legally on the deed.
❌ Divorce Issues: If your child goes through a divorce, their ex-spouse could claim rights to your home.
❌ Loss of Control: Once their name is on the deed, you cannot sell, refinance, or remove their name without their consent.
❌ Tax Consequences: Adding a child to your deed removes their ability to get a "stepped-up basis" for capital gains tax, potentially costing them thousands in extra taxes.

The Best Solution: The Enhanced Life Estate Deed (Lady Bird Deed)

A Lady Bird Deed (Enhanced Life Estate Deed - ELD) allows you to:

✅ Keep full control of your home during your lifetime.
✅ Live in, sell, or refinance your home at any time—without your children’s consent.
✅ Automatically pass your home to your heirs upon your death—WITHOUT probate.
✅ Keep your homestead tax benefits (saving around $750 per year in real estate taxes).
✅ Protect your home from your children’s creditors since they have no legal claim until after you pass away.

How Does a Lady Bird Deed Work?

A Lady Bird Deed states that you own and control your home for your entire life, but upon your death, it automatically passes to your named beneficiary. All your heirs have to do is record your death certificate—no costly and time-consuming probate required.

A Smart Move for Blended Families

Pro Tip: If you and your spouse have children from previous marriages, a Lady Bird Deed can guarantee your home is passed fairly to all children—not just the surviving spouse’s kids.

Olsen Law Group offers a free initial consultation regarding the preparation of your estate planning documents.  We can do that initial consultation by phone, zoom or in person (your choice.)  We also offer Saturday appointments.  Call the Olsen Law Group at (407) 423-5561 to schedule your free estate planning consultation.