Lady Bird Deeds in Texas: A Simple Way to Avoid Probate and Protect Your Home

If you own a home in Texas, you’ve probably heard that “probate is easier here than in other states.” That’s often true, but it’s still a court process, it still takes time, and it still costs money.

For a lot of families, a Lady Bird Deed (also known as an enhanced life estate deed) is a simple way to keep the home out of probate entirely, while letting you keep full control of the property during your lifetime.

This post walks through what a Lady Bird Deed is, how it works in Texas, and when it might make sense to use one as part of your estate plan.

What Is a Lady Bird Deed in Texas?

A Lady Bird Deed is a special type of deed that lets you:

• Keep ownership and control of your home while you’re alive, and
• Automatically transfer it to your chosen beneficiary when you die,
• Without going through probate.

It’s called an “enhanced life estate deed” because you keep a life estate in the property (the right to use and control it during your lifetime), but with “enhanced” powers you don’t see in a traditional life estate.

This means that you get to keep the power over the estate while you're alive, but that it passes on easily once you're not.

How a Lady Bird Deed Works

With a typical transfer-on-death style setup, you often give up some control. A Lady Bird Deed is different. Under a properly drafted Texas Lady Bird Deed:

• You keep the right to live in the home for the rest of your life.
• You keep the right to sell, refinance, or even give away the property without getting permission from the beneficiary.
• The remainder beneficiary (often a child or other loved one) gets the property automatically at your death.

At your death, your life estate ends and the remainder interest “springs” into full ownership in the beneficiary outside of probate. The county records office already has the deed, so there’s no need to transfer the title through the court.

Why Texans Use Lady Bird Deeds

For many Texas homeowners, Lady Bird Deeds hit a sweet spot between simplicity and control.

Here are some of the main benefits:

1. Avoiding probate for the homestead

For most families, the homestead is the largest asset. If you can keep it out of probate, the rest of the estate is often much faster and cheaper to settle.

Because a Lady Bird Deed passes the property automatically at death, the house never becomes part of the probate estate, so:

• There’s no need for a court order to transfer title.
• Your beneficiary avoids probate costs and delay on the home.
• There’s less opportunity for conflict over who gets the house.

2. Keeping control while you’re alive

Traditional life estates can be restrictive: once you give someone a remainder interest, you may not be able to sell or refinance without their consent.

With a Lady Bird Deed, the life tenant (you) usually keeps the power to:

• Sell the property
• Mortgage or refinance it
• Change the remainder beneficiaries by signing a new deed

That flexibility is a big deal if you ever need to downsize, move closer to family, or tap your home equity.

3. Potential Medicaid and estate-recovery advantages

Texas has a Medicaid Estate Recovery Program (MERP) that can attempt to recover certain costs from a Medicaid recipient’s estate after death. In some situations, keeping the home out of the probate estate with a Lady Bird Deed can help limit what is available for recovery.

This area is very fact-specific, and the rules can change—so it’s important to talk with an attorney familiar with both estate planning and Medicaid planning before relying on a Lady Bird Deed for this purpose.

4. Possible tax benefits for beneficiaries

Because the property passes at death rather than being gifted during your lifetime, your beneficiary may receive an increased basis for capital gains tax purposes. That can reduce or eliminate capital gains tax if they sell the home soon after your death.

Again, this is a conversation to have with a tax professional, because every situation is different—but for many families, it’s a meaningful benefit.

When a Lady Bird Deed Might Be a Good Fit

A Texas Lady Bird Deed is often worth considering if:

• Your home is one of your largest assets.
• You want a simple way to pass it to a specific person or a small group (for example, your children).
• You’re comfortable keeping ownership and control during your life, but want things as smooth as possible for your family when you’re gone.
• You’re trying to keep probate costs and court involvement to a minimum.
• You want to explore potential Medicaid or incapacity planning options.

When a Lady Bird Deed May Not Be the Best Tool

Lady Bird Deeds aren’t a cure-all. They may not be ideal if:

• You have a complicated family situation (multiple marriages, conflict between heirs, or beneficiaries who don’t get along).
• You own multiple properties or business interests that also need planning.
• You want to leave your home to several people who might disagree about whether to sell or keep it.
• You need more advanced planning tools, such as a revocable living trust, to manage incapacity, blended families, or detailed distributions.

In those situations, a Lady Bird Deed might still play a role, but it should be part of a broader, coordinated plan rather than a stand-alone fix.

Key Things to Know Before Signing a Lady Bird Deed

If you’re considering a Lady Bird Deed in Texas, here are some practical points to keep in mind:

• The deed has to be drafted correctly. Small wording mistakes can turn an enhanced life estate into a regular life estate—or worse, an immediate transfer.
• You need to record it. A Lady Bird Deed must be properly executed and recorded in the real property records of the county where the property is located.
• You should coordinate it with your will or trust. Your estate plan shouldn’t send conflicting instructions about who gets the house.
• Mortgage and title companies may have their own requirements. If you refinance or sell later, the company may want to see the deed and confirm your powers.

Lady Bird Deed vs. Just Using a Will

A will is still an important document, even if you use a Lady Bird Deed. The big difference is when and how the transfer happens:

• With a will, your executor has to open probate, get authority from the court, and then sign a deed transferring your home to the beneficiary.
• With a Lady Bird Deed, the transfer is built into the deed itself. At your death, the beneficiary’s ownership becomes complete without a court order.

Many Texans end up using both:

• A will to handle cash, vehicles, personal property, and “everything else,” and
• A Lady Bird Deed to handle the homestead.

Talk With a Texas Estate Planning Attorney

Lady Bird Deeds can be a powerful, simple tool—but they’re still a legal instrument, and the details matter.

A Texas estate-planning attorney can help you:

• Decide whether a Lady Bird Deed fits your overall goals.
• Coordinate your deed with your will, powers of attorney, and any trusts.
• Avoid common mistakes that cause title headaches for your family later.

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