Florida Deed Types Explained

Lady Bird Deed vs. Quitclaim Deed

These two deeds do very different things — and using the wrong one can create a Medicaid problem, a probate problem, or both. Here’s how to tell them apart.

Quitclaim deeds and Lady Bird Deeds are both commonly used in Florida real estate — but they serve completely different purposes. Confusing them is one of the most common mistakes Florida homeowners make in estate planning, and it can have serious consequences for your Medicaid eligibility, your family’s probate exposure, and your capital gains tax situation.

The Core Difference in One Sentence

Quitclaim Deed

Transfers Ownership NOW

The moment a quitclaim deed is signed and recorded, ownership changes hands. The grantor gives up their interest — immediately and irrevocably (unless the deed is challenged). This is an inter vivos (lifetime) transfer.

Lady Bird Deed

Transfers Ownership AT DEATH

A Lady Bird Deed only transfers ownership after the grantor dies. During the grantor’s lifetime, they keep full control — they can sell, refinance, or cancel the deed entirely without the beneficiary’s knowledge or consent.

This single distinction drives every other difference between these two deed types — including the Medicaid consequences, probate treatment, and tax implications outlined below.

What Is a Quitclaim Deed?

A quitclaim deed transfers whatever interest the grantor has in a property to the grantee — with no warranties about the title’s quality. It’s the simplest form of deed transfer and is used most commonly for:

Transferring property between spouses (during marriage, divorce, or name change)
Adding or removing a co-owner
Clearing up a cloud on title
Transferring property into or out of a trust or LLC
Parent-to-child gifts of real estate (where Medicaid lookback is not a concern)

⚠ Medicaid Warning: If you use a quitclaim deed to transfer your home to your children, Florida Medicaid treats this as a disqualifying gift. Under the 5-year lookback rule, this transfer can create a penalty period that delays your Medicaid eligibility by months or years. This is one of the most expensive mistakes seniors make.

What Is a Lady Bird Deed?

A Lady Bird Deed (Enhanced Life Estate Deed) is a Florida estate planning tool that lets you designate who will receive your home when you die — without going through probate — while keeping total control of the property during your lifetime. Unlike a quitclaim deed, no transfer occurs while you’re alive. The beneficiary has only a contingent future interest that vests at your death.

This distinction is why Lady Bird Deeds are the preferred choice for Florida Medicaid planning: since no present transfer occurs, the deed does not trigger the 5-year lookback period.

Lady Bird Deed vs. Quitclaim Deed: Full Comparison

Feature	Lady Bird Deed	Quitclaim Deed
When does transfer occur?	✔ At grantor’s death	✘ Immediately upon recording
Grantor retains full control	✔ Yes — for life	✘ No — ownership already changed
Avoids probate	✔ Yes — automatic at death	✔ Yes — already transferred
Medicaid lookback safe	✔ Yes — not a transfer	✘ No — counted as a gift
Capital gains step-up at death	✔ Yes — heirs get stepped-up basis	✘ No — grantor’s basis carries over
Can be revoked	✔ Yes — record new deed	✘ No — transfer is done
Beneficiary exposed to creditors	✔ No — during grantor’s life	✘ Yes — once they own it
Title warranties included	✘ No (enhanced life estate)	✘ No — “as-is” title
Documentary stamp tax on recording	✔ Minimal (life estate value)	⚠ Based on consideration paid
Best use case	✔ Estate planning / Medicaid planning	⚠ Ownership changes, corrections, LLC transfers
Requires grantor to be living at signing	✔ Yes	✔ Yes
Two witnesses + notary required in FL	✔ Yes	✔ Yes

When to Use Each Deed Type

✔ Use a Quitclaim Deed For…

Adding a spouse to the deed after marriage
Removing an ex-spouse after divorce
Transferring into your LLC or living trust
Clearing a technical title defect
Gifting to a child when Medicaid is NOT a concern

✔ Use a Lady Bird Deed For…

Leaving your home to children at death
Avoiding probate without losing control
Medicaid planning (no lookback trigger)
Protecting against beneficiary’s creditors
Giving heirs a stepped-up tax basis

The Capital Gains Tax Angle — This Matters

If you transfer your home to your children with a quitclaim deed, they take your original cost basis. If you bought your home in 1990 for $80,000 and it’s worth $380,000 today, and you quitclaim it to your daughter, her basis is $80,000. If she sells after you transfer it, she could owe capital gains tax on $300,000 in appreciation.

With a Lady Bird Deed, the property transfers at death, which triggers a step-up in basis to the fair market value at date of death under IRC §1014. If the home is worth $380,000 when you die, your daughter inherits with a $380,000 basis — and owes zero capital gains tax if she sells it promptly at that value.

This tax difference alone can be worth tens of thousands of dollars. It’s one of the most underappreciated advantages of the Lady Bird Deed over a quitclaim transfer.

Frequently Asked Questions

Can I use a quitclaim deed to put my house in my name only after inheriting it?

Not typically. If you’re trying to clear title after inheriting property, you’d usually need a Personal Representative’s Deed or a Certificate of Trust, depending on how the estate was handled. A quitclaim deed can’t create title where none exists in the grantor. Call us — we can tell you exactly what you need.

I already did a quitclaim deed. Can I still do a Lady Bird Deed?

It depends on what you quitclaimed and what interest you retained. If you transferred full ownership via quitclaim, you’d no longer have the interest needed to execute a Lady Bird Deed. If you retained a life estate through the quitclaim (less common), there may be options. This requires a review of your specific deed language.

Does a Lady Bird Deed provide title warranty?

No. Lady Bird Deeds in Florida are typically prepared without warranty covenants — similar to a quitclaim deed in that respect. If you want a warranty of title, a Warranty Deed is the appropriate instrument (though those are typically used in sales, not estate planning contexts).

What are the documentary stamp tax implications for each?

Florida imposes documentary stamp taxes on deed transfers. For a Lady Bird Deed, because no consideration is typically paid, only the minimum stamp tax (70 cents) is generally due. For a quitclaim deed, the tax is calculated based on consideration or the mortgage balance assumed, whichever applies. Your county clerk’s office can provide current rates.

I want to add my child to the deed so they can help me sell later. Which deed should I use?

Neither — you’re describing a different goal. If you want a child to be able to act on your behalf during your lifetime, a Durable Power of Attorney is the right tool. If you want to add them as a co-owner, a quitclaim deed would do that — but with Medicaid and tax trade-offs. If you simply want them to inherit the home at death, a Lady Bird Deed is the cleanest solution with no trade-offs.

Get the Right Florida Deed — Done Right

Noble Notary prepares Lady Bird Deeds and Quitclaim Deeds for Florida homeowners statewide. Flat-fee pricing, fast turnaround, mobile notary available.

Lady Bird Deed — $225
Quitclaim Deed — $225

Full-service (prep + notarization + witnesses): $400 · Serving all 67 Florida counties · Not sure which you need? Get a free consultation.

Ladybird Deed

Ladybird Deed vs. Quitclaim Deed