A lady bird deed (aka enhanced life estate deed) and a traditional life estate deed are similar in that they are both instruments used in Florida that transfer property at the death of a life tenant to remaindermen (the person(s) receiving the property upon the life tenant’s death). In both deeds, the life tenant has a life estate, which enables the life tenant to live in the property for life. When the life tenant dies, the remaindermen inherit the property.
The main difference between a lady bird deed and a traditional life estate deed is the power the life tenant has during the life tenant’s life. In a lady bird deed, the life tenant has the power to mortgage, improve, or convey the property without the consent of the remaindermen. In addition, the life tenant does not have liability for waste and other obligations to preserve the property for the benefit of the remaindermen.
In a traditional life estate deed, there are restrictions placed on the life tenant and there are duties owed by the life tenant to the remaindermen. By default, the life tenant cannot mortgage, improve, or convey the property without the consent of the remaindermen. The life tenant also has a general duty to not commit waste and is responsible for ordinary repairs, paying mortgage interest, property taxes, homeowner’s insurance, homeowner/condo association dues, and any other expenses related to the ordinary use of the property.