Living Trust vs Lady Bird Deed: Which Avoids Probate for Less?
A lady bird deed (also called an enhanced life estate deed) is a real-estate-only document that costs a few hundred dollars and lets your home skip probate and pass directly to named beneficiaries, but it is only available in a handful of states.
A revocable living trust costs more — typically $1,500 to $5,000 attorney-drafted — but covers your entire estate, not just one property, and works in every state. If you own a single home in Florida, Texas, Michigan, Vermont, or West Virginia and have little else to plan for, a lady bird deed can be the cheaper, simpler choice; a living trust is the broader tool for everyone else.
Revocable Living Trust vs Lady Bird Deed (Enhanced Life Estate Deed): Side-by-Side
| Revocable Living Trust | Lady Bird Deed (Enhanced Life Estate Deed) | |
|---|---|---|
| What it covers | Your entire estate — real estate, accounts, and other property you retitle into it | One piece of real estate named on the deed |
| States available | Every state | Only a handful: Florida, Texas, Michigan, Vermont, West Virginia (a few others recognize a similar transfer-on-death deed) |
| Typical cost | $1,500–$5,000 attorney-drafted ($5,000–$10,000+ in California/HNW metros); online $139–$599 | $400–$1,000 attorney-drafted; a simple recorded form in some states |
| Avoids probate | Yes, for everything retitled into the trust | Yes, for the named property only |
| Control during life | Full control as trustee; can sell, refinance, or amend | Full control; can sell, mortgage, or revoke without any beneficiary's consent |
| Medicaid estate-recovery protection | None — a revocable trust does not shield assets from Medicaid, including after death | Can shield the home from Medicaid estate recovery once you die, since it passes outside probate |
| Setup effort | Draft the trust, then retitle each asset into it (the step most people skip) | Sign and record one deed at the county recorder's office |
Which should you choose?
Choose a lady bird deed if you live in one of the states that allows it, own a home as your main asset, and want the cheapest way to keep that house out of probate — it costs a few hundred dollars against a living trust's $1,500-plus. Choose a revocable living trust if you have multiple properties, meaningful non-real-estate assets, want a single document that covers everything, need built-in incapacity planning, or your state does not recognize lady bird deeds at all.
Many single-asset homeowners in the eligible states use a lady bird deed instead of a full trust; everyone else, and anyone with a more complex estate, is usually better served by the trust.
What a lady bird deed actually is
A lady bird deed — also called an enhanced life estate deed, and sometimes labeled a transfer-on-death deed in states like Texas that use similar language — lets you keep full ownership and control of your home while you're alive, including the right to sell it, mortgage it, or revoke the deed entirely, without needing permission from the beneficiaries named on it. When you die, the property passes directly to those named beneficiaries, bypassing probate court completely.
Only five states currently recognize the lady bird deed by name: Florida (used since the 1980s), Texas, Michigan (since 2014), Vermont (since 2018), and West Virginia (since 2019). A handful of other states offer a similar statutory transfer-on-death deed that accomplishes much the same goal for real estate specifically. If your state isn't on this list, the option simply isn't available to you, and a living trust becomes the standard route to avoid probate on a home.
Cost: a few hundred dollars vs a few thousand
A lady bird deed is one of the cheapest probate-avoidance tools available. Attorney-drafted, it typically runs $400 to $1,000 — largely the cost of drafting a single deed and recording it at the county recorder's office. A revocable living trust runs meaningfully higher: $1,500 to $5,000 for typical facts, and $5,000 to $10,000 or more in California and other high-cost metros, per our living trust cost calculator.
The living trust's higher price buys broader coverage: it can hold bank accounts, brokerage accounts, business interests, and multiple properties, not just one house. A lady bird deed only ever covers the specific parcel named on it — if you own a second home or a rental property, each one needs its own separate deed, and none of your other assets (accounts, vehicles, personal property) get any probate protection from it at all.
The non-obvious edge: Medicaid estate recovery
Here is the tradeoff most comparisons miss. A revocable living trust does NOT protect your home from Medicaid estate recovery after you die, because the assets remain fully in your control (and therefore countable) during your lifetime — Medicaid can still pursue a claim against trust-held property through the probate-adjacent recovery process in many states.
A lady bird deed can do better here. Because the property passes directly to your named beneficiaries at death and never touches probate, it can fall outside the reach of your state's Medicaid estate recovery program for the home specifically — a real advantage for someone whose home is their main asset and who may need Medicaid-funded long-term care later. This is a narrower issue than a full Medicaid Asset Protection Trust (see revocable vs irrevocable trust for the MAPT route), but it's a meaningful, low-cost layer of protection a living trust alone does not provide.
When each one wins
A lady bird deed wins when you live in an eligible state, your estate is simple (mainly your home), you have a small number of cooperative beneficiaries, and cost is a real constraint. It's a fast, cheap, single-purpose fix.
A living trust wins when you own more than one property, have significant non-real-estate assets, want one document to manage everything (including what happens if you become incapacitated, not just when you die), or live in a state that doesn't offer the lady bird option at all. Many people layer both: a lady bird deed on the primary home for its Medicaid-recovery edge, and a revocable trust for everything else. See our full living trust vs will comparison if you haven't ruled out simpler options first.
Frequently asked questions
What states allow a lady bird deed?
Only five states currently recognize the lady bird deed (enhanced life estate deed) by name: Florida, Texas, Michigan, Vermont, and West Virginia. A few other states offer a similar statutory transfer-on-death deed for real estate. If your state isn't one of these, a lady bird deed is not an option, and a revocable living trust is the standard way to avoid probate on a home.
How much does a lady bird deed cost compared to a living trust?
A lady bird deed typically costs $400 to $1,000 attorney-drafted, versus $1,500 to $5,000 (or $5,000 to $10,000+ in high-cost metros) for a revocable living trust. The lady bird deed only covers one named property, while the living trust can cover your entire estate once you retitle assets into it.
Does a lady bird deed avoid probate?
Yes, for the specific property named on the deed. The home passes directly to your named beneficiaries at death without going through probate court. It provides no probate protection for any other assets you own — bank accounts, other real estate, or personal property still need their own plan, such as a will or living trust.
Does a lady bird deed protect my home from Medicaid?
A lady bird deed can help shield your home from Medicaid estate recovery after you die, because the property passes directly to beneficiaries outside of probate. A revocable living trust does not offer this protection, since you retain full control of trust assets during your life. Neither tool protects against Medicaid's asset limits while you're alive — a Medicaid Asset Protection Trust (a type of irrevocable trust) is required for that.
Can I still sell or mortgage my house after signing a lady bird deed?
Yes. A lady bird deed's defining feature is that you keep full control during your life — you can sell the property, take out a mortgage, or revoke the deed entirely, all without needing permission from the beneficiaries named on it. Control only passes to the named beneficiaries when you die.
Free calculators to help you decide
Sources
We prioritize primary sources for rules, formulas, rates, limits, and definitions. See our calculator methodology and editorial policy.