Lady Bird Deeds in Texas: A Simple Way to Transfer Real Property Outside Probate

Texas offers a powerful and often underused estate planning tool for homeowners: the Lady Bird Deed, formally known as an Enhanced Life Estate Deed.

Here's how it works: you transfer ownership of your property to a named beneficiary — a child, for example — but you retain full control during your lifetime. You can sell the property, refinance it, lease it, or even revoke the deed entirely without the beneficiary's consent. When you die, the property passes automatically to the beneficiary — without going through probate.

Why is this valuable? Real estate is often the largest asset in an estate, and transferring it through probate is slow, expensive, and public. A Lady Bird Deed eliminates all of that.

Additional benefits specific to Texas: Medicaid protection. Unlike a traditional life estate deed, a Lady Bird Deed generally does not disqualify you from Medicaid because you retain full control of the property. It also helps avoid Medicaid estate recovery in many cases. Homestead exemption. Transferring your home via Lady Bird Deed typically does not affect your Texas homestead exemption or property tax caps. Step-up in basis. Beneficiaries who inherit through a Lady Bird Deed may receive a stepped-up tax basis, potentially reducing capital gains tax if they later sell the property.

It's worth noting that Lady Bird Deeds are not recognized in all states — Texas is one of a handful that allow them. If you own property in multiple states, you'll need different strategies for each.

📌 If you own real estate in Texas and don't have a Lady Bird Deed, you may be missing a significant opportunity. Let's talk — schedule your consultation today.