Warranty Deed vs. Lady Bird Deed: How They Impact Probate in Florida

When planning your estate, understanding the tools available to transfer property to your heirs is crucial. A common question is how a warranty deed differs from a Lady Bird deed and whether a warranty deed can help avoid probate, especially when a will specifies different beneficiaries. In this article, we’ll clarify the differences between these deeds, their impact on inheritance, and how they interact with probate in Florida.

What Is a Warranty Deed?

A warranty deed is commonly used when purchasing real estate. It ensures the buyer receives a clear title, free from defects or claims, even those predating the seller’s ownership. The seller “warrants” that the property is free of title disputes, meaning they are responsible if someone else claims ownership. This makes warranty deeds a standard choice in real estate transactions to protect the buyer’s interest.

However, a warranty deed does not inherently list beneficiaries or facilitate inheritance outside of probate. Unless the deed specifies joint tenants with rights of survivorship (where the property automatically passes to the surviving owner), a warranty deed does not bypass the probate process. Instead, the property’s distribution depends on the owner’s will or Florida’s intestacy laws if no will exists.

What Is a Lady Bird Deed?

A Lady Bird deed, also known as an enhanced life estate deed, is a powerful estate planning tool in Florida. It allows the property owner to designate beneficiaries (individuals or a trust) who will inherit the property directly upon the owner’s death, avoiding probate. The beneficiaries, referred to as remaindermen, have no ownership interest during the owner’s lifetime, meaning the owner retains full control to sell, lease, or mortgage the property without needing the beneficiaries’ permission.

The key advantage of a Lady Bird deed is that it trumps a will. Even if a will names different beneficiaries, the individuals or trust listed on the Lady Bird deed will inherit the property. This is similar to a bank account with a Payable on Death (POD) designation, where the named beneficiary receives the funds directly, bypassing probate and overriding the will.

How Warranty Deeds and Probate Interact

Unlike a Lady Bird deed, a warranty deed does not include a mechanism to name beneficiaries for inheritance. If a property is held under a warranty deed, its distribution after the owner’s death depends on how the property is titled:

• Joint Tenants with Rights of Survivorship: If the property is owned by two people (e.g., your grandmother and father) as joint tenants with rights of survivorship, the surviving owner automatically inherits the property upon the other’s death, avoiding probate. However, when the surviving owner dies, the property will require probate unless a Lady Bird deed or similar tool is in place.

• Tenants in Common: If the property is owned as tenants in common (e.g., each owning 50%), each owner’s share will go through probate upon their death. The distribution of each share will follow the owner’s will or, if no will exists, Florida’s intestacy laws.

• Sole Ownership: If the property is owned by one person, it will go through probate unless a Lady Bird deed or other beneficiary designation is used.

In the case of a warranty deed, if a will specifies that the property should be split three ways, the property will still need to go through probate to follow the will’s instructions, unless the deed includes a survivorship provision or a Lady Bird deed is created.

Why Choose a Lady Bird Deed Over a Warranty Deed?

A Lady Bird deed offers significant advantages for avoiding probate:

1. Bypasses Probate: The property transfers directly to the named beneficiaries upon the owner’s death, avoiding the time, cost, and complexity of probate.

2. Overrides a Will: Beneficiaries named in a Lady Bird deed take precedence over those listed in a will, ensuring your wishes for the property are followed.

3. Retains Owner Control: The owner maintains full control during their lifetime, including the ability to change beneficiaries without their consent.

4. Flexibility for Joint Ownership: Even if a property is owned 50/50 (as tenants in common), separate Lady Bird deeds can be created for each owner’s share to designate beneficiaries.

In contrast, a warranty deed focuses on ensuring a clear title during a sale and does not provide a mechanism to avoid probate or designate beneficiaries for inheritance.

What Happens If a Will Conflicts with a Deed?

If a property is held under a Lady Bird deed, the beneficiaries named on the deed will inherit the property, regardless of what the will says. For example, if your grandmother’s will splits the property three ways but the Lady Bird deed names only one beneficiary, the beneficiary on the deed prevails.

With a warranty deed, however, the property will go through probate, and the will’s instructions (e.g., splitting the property three ways) will determine the distribution, assuming no survivorship provision exists. If there’s no will, Florida law dictates who inherits the property.

Can You Convert a Warranty Deed to a Lady Bird Deed?

Yes, in Florida, you can create a Lady Bird deed to replace or supplement a warranty deed. This is a smart option if you want to avoid probate and ensure the property passes directly to your chosen beneficiaries. If the property is co-owned (e.g., 50/50 by your grandmother and father), each owner can create a Lady Bird deed for their share, specifying their desired beneficiaries.

Conclusion

Understanding the difference between a warranty deed and a Lady Bird deed is critical for effective estate planning in Florida. While a warranty deed ensures a clear title during a property sale, it does not help avoid probate or designate beneficiaries for inheritance. A Lady Bird deed, on the other hand, is a powerful tool to transfer property directly to beneficiaries, bypassing probate and overriding a will’s instructions. If you’re concerned about how your property will be distributed or want to avoid probate, consult an experienced estate planning attorney to explore options like a Lady Bird deed.

For personalized guidance on warranty deeds, Lady Bird deeds, or other estate planning tools in Florida, contact a to ensure your wishes are carried out efficiently.