Transfer on death deed vs lady bird deed
These two do almost the same thing: keep the property out of probate while leaving you in complete control for life. The practical difference is where they come from, a statute or the common law, and that affects certainty rather than outcome.
| Transfer-on-death deed | Lady bird deed | |
|---|---|---|
| Legal basis | State statute | Common law and title practice |
| Available in | 32 states + DC | Florida, Michigan, Texas, Vermont, and West Virginia |
| Keeps full control? | Yes | Yes |
| Revocable? | Yes | Yes |
| Avoids probate? | Yes | Yes |
| Statutory revocation form? | Usually yes | No. Record a new deed |
| Certainty | High. The statute says what happens | Good, but rests on practice |
| Medicaid treatment | Varies by state | Often favourable where recognized |
Where you get a choice
In most states you don't. Florida and Michigan recognize lady bird deeds but have no TOD deed. Most TOD states do not recognize lady bird deeds. Texas and West Virginia are the two states that accept both, and there the decision is real.
In Texas
The TOD deed is statutory (Tex. Est. Code ch. 114), which means the rules are written down: how to execute it, how to revoke it, what happens if a beneficiary dies first. The lady bird deed rests on long-standing title company practice with no statute behind it. For most people the statutory instrument is the safer choice; practitioners who prefer the lady bird deed usually do so for Medicaid planning reasons specific to a client's situation.
In West Virginia
West Virginia has a statutory TOD deed (W. Va. Code § 36-12-1) and also recognizes enhanced life estate deeds in practice. The statutory route is clearer and is what we would default to.
The practical answer
Where a statutory TOD deed exists, use it. Statutes give courts and title companies something definite to apply. Use a lady bird deed where your state has no TOD deed, Florida and Michigan, or where an attorney has a specific reason for choosing it.
Only the instruments your state recognizes, with the statute cited.
Common questions
Where both exist, the statutory TOD deed is usually the safer choice because the rules are written down. Where only one exists, that is your answer. The practical outcome is very similar either way.
You should not. Two instruments purporting to control what happens at death is a recipe for a title dispute. Pick one, record it, and revoke anything earlier.
No. Florida has never adopted one. The lady bird deed is Florida's probate-avoidance instrument and it is used very widely there. Florida lady bird deeds.
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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.