frequently asked questions

What is the difference between a Lady Bird Deed and a Transfer on Death Deed?

What is the difference between a Lady Bird Deed and a Transfer on Death Deed?

Lady Bird Deeds (or more formally: Enhanced Life Estate Deeds), have been used historically to transfer real property upon death.  More recently, the statutory creation of a Transfer on Death Deed (or TODD) offers another way to transfer real property upon death.  Which is the better way to go?  It depends.  Below we offer a comparison of the similarities and differences of what can be done with the two different approaches.

	Lady Bird Deed	TODD
Transfers real property upon death?	Yes	Yes
Flexibility in transfers to beneficiaries (percentages)?	More	Less
Revocable?	Yes	Yes
Can offer warranties of title?	Yes	No
Subject to creditor claims, estate tax, or family allowances?	No	Yes
Recognized by Medicaid?	Yes	Yes
Ability to sell, convey, mortgage, or encumber property?	Yes	Yes
Can be executed by a Power of Attorney?	Yes	No
Accepted by title companies?	Yes	Maybe

 

This is a very brief comparison of Lady Bird Deeds and Transfer on Death Deeds.  While Transfer on Death Deeds offer simplicity for the layperson to attempt to dispose of a home, which is typically the primary or only asset, Lady Bird Deeds offer more options and flexibility but can be more complex.  If you need help with your estate planning or have questions, contact the Law Office of Roy Neal Linnartz, PLLC at 830-625-9300.