Refinancing in Florida with a Lady Bird Deed: What You Need to Know

Refinancing can be stressful enough, but for homeowners with a Lady Bird Deed, lenders sometimes throw an additional hurdle into the process. It’s not uncommon for a lender to request that a Lady Bird Deed be removed before closing. Here’s why this happens, how Lady Bird Deeds work, and what you can do if your lender raises concerns.

What Is a Lady Bird Deed (Enhanced Life Estate)?

A Lady Bird Deed, also called an Enhanced Life Estate Deed, allows a property owner to record a deed that only becomes effective upon their death. At that time, the property automatically transfers outside of probate to the named beneficiaries, also called remaindermen.

This type of deed is considered “enhanced” because it preserves the homeowner’s full control of the property during their lifetime. Under a Lady Bird Deed, the homeowner can:

• Cancel the conveyance at any time.

• Sell the property at any value they choose.

• Mortgage or refinance the property without beneficiary approval.

• Remodel, lease, or otherwise control the property without liability to the remaindermen.

In short, the remaindermen only receive what the homeowner owns at death, unless the deed is revoked. If the property is sold beforehand, the Lady Bird Deed has no effect.

This is very similar to a revocable trust, where the grantor retains the ability to revoke the conveyance and maintain full ownership during their lifetime.

How Is a Lady Bird Deed Different from a Traditional Life Estate?

Most states use a traditional life estate rather than Lady Bird Deeds. Here’s how they differ:

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