What Is the Difference Between a Lady Bird Deed and a Trust?

What Is a Lady Bird Deed?

A lady bird deed transfers property upon your death to designated beneficiaries but retains full control over your their lifetime, including the ability to sell, mortgage, or change beneficiaries.

Your designated beneficiaries on the deed have  no ownership interest in or powers over the property while you are alive. The lady bird deed eliminates the need for your family to probate the property after your death.

What Is a Living Trust?

A living trust is an estate planning trust that allows you to manage your assets during your lifetime and transfer them to your beneficiaries upon your death, bypassing probate.

You retain full control and use of the assets while you are alive. Your living trust designates who you wish to share your assets upon your death. The living trust appoints a trustee to administer your trust and your testamentary instructions.

Comparison Between Lady Bird Deed and Living Trust

Costs and Complexity: Living trusts are more costly to create because living trusts involve more complex legal issues.

Scope: A living trust directs the inheritance of many types of assets, including financial accounts, tangible property, and estate. A lady bird deed applies only to real estate.

Control: In both a living trust and lady bird deed, you can control your real estate during your lifetime without the consent of your beneficiaries.

Amendment: You can revoke or amend your living trust as long as you are alive. Similarly, you can change the beneficiaries of a lady bird deed or revoke the deed.

Privacy: Lady bird deeds are filed with the recorder of deeds and are visible to the public. Living trusts are unrecorded private contracts.