How A Ladybird Deed Works

The basic idea behind the Ladybird Deed in Florida, is that it allows the property to pass outside of probate after the initial owner passes away. It also provides that the initial owner (called the life tenant) can (a) change their mind as to who should receive the property after they pass and (b) do whatever they want with their property while they are alive without having to consult or get the permission of the listed beneficiaries (called the remaindermen).

This can be done because the remaindermen do not have an interest in the property until the life tenant passes. 

Aside from bypassing probate, the remaindermen receive a step-up in tax basis, meaning that when they decide to sell the property, their capital gains will be based on the difference between what they sell the property for and what the market value of the property was at the time of your passing, presumably saving tens of thousands of dollars.   

Besides Florida, only Michigan, Texas, Vermont and West Virginia offer Ladybird Deeds.