Lady bird deed vs living trust
This is a question about scope, not quality. A lady bird deed does one job for $69. A living trust does many jobs for thirty times that. Most people asking the question need the deed, and a few really do need the trust.
| Lady bird deed | Revocable living trust | |
|---|---|---|
| Typical cost | $69 + recording fee | $1,000–$3,000 |
| Covers | One property | Everything you fund into it |
| Avoids probate | For that property | For everything in it |
| Handles incapacity | No | Yes |
| Privacy | Recorded publicly | Private |
| Ongoing maintenance | None | Must be funded and kept current |
| Revocable | Yes | Yes |
| Works out of state | No. One deed per state | Yes |
| Where available | Florida, Michigan, Texas, Vermont, and West Virginia | Everywhere |
Choose the lady bird deed if
- Your house is your main asset and you're in Florida, Michigan, Texas, Vermont, and West Virginia.
- You want it to go to one or two people who won't fight about it.
- Your other assets already have beneficiary designations. Retirement accounts, life insurance, payable-on-death bank accounts.
- You want probate avoidance without a lawyer's bill and ongoing administration.
Choose the living trust if
- You own property in more than one state. Otherwise your family faces a separate probate in each.
- You want someone to manage your affairs if you become incapacitated. A deed does nothing for this; a trust does.
- You have minor children, a blended family, or a beneficiary with special needs.
- You want the details of your estate to stay private. A recorded deed is a public document; a trust is not.
- You want to control when and how beneficiaries receive assets, not just who gets them.
Many people sensibly use both
A lady bird deed on the house plus a simple will covers a lot of ground for well under $200. If your circumstances later become more complex, a trust can be layered on and the deed can point to it.
The incapacity gap
This is the one advantage of a trust that people consistently under-weight. If you become unable to manage your affairs, a lady bird deed does nothing, someone has to petition a court for a conservatorship, which is expensive and public. A funded trust lets your named successor trustee step in immediately. A durable power of attorney closes much of the same gap for far less money, and is worth having regardless.
We'll tell you honestly when a trust is the better answer for your situation.
Common questions
Yes, and it is common. You can even name the trust as the remainder beneficiary of the lady bird deed, which routes the house into the trust at death and keeps the trust's distribution terms in control.
It depends on the size and complexity of the estate. Probate commonly costs three to seven percent of estate value, so on a $600,000 estate a trust can pay for itself several times over. On a single $250,000 house going to one child, a $69 deed does the same job.
For the property it names, yes. The deed operates at death and controls that property. If you have a trust, make sure the two documents agree about who gets the house, or point the deed at the trust.
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Deedly is not a law firm
We provide self-help software and state-specific statutory forms; you make your own decisions about your property. Using Deedly does not create an attorney-client relationship, and nothing here is legal advice. If your situation is complex or contested, talk to a licensed attorney in your state.