Florida Estate Planning: Protected Assets and the Lady Bird Deed Explained

When it comes to estate planning in Florida, two questions come up again and again:

“What assets are protected from creditors?”
“What is a Lady Bird deed, and how does it work?”

Both topics touch on how you can protect your assets and control what happens to them after your death — but they work in very different ways. Let’s break each one down.

Assets Protected from Creditors in Florida

Florida has some of the strongest asset protection laws in the country. Certain types of property are shielded from creditors, meaning they generally can’t be taken to satisfy debts. Here are some common examples:

1. Homestead Property

Your primary Florida residence(your homestead) is one of the most well-protected assets. Florida’s Constitution provides that a homestead can’t be forced to be sold by most creditors to pay debts.

There are exceptions for things like mortgages, property taxes, or contractors’ liens.
But overall, this protection is extremely valuable for homeowners.

2. Retirement Accounts

Most qualified retirement plans —like 401(k)s, IRAs, and pensions—are protected under both state and federal law. That means creditors generally cannot touch these funds.

3. Life Insurance and Annuities

The cash value of life insurance and annuity contracts issued to a Florida resident is also exempt from creditor claims. This makes them popular tools for long-term financial and estate planning.

4. Tenancy by the Entirety Property

Assets owned jointly by a married couple(such as bank accounts or real estate titled as “tenants by the entirety”) are protected from the creditors of just one spouse. Creditors must have a claim against both spouses to pursue those jointly held assets.

These laws are part of what makes Florida an attractive place to retire or relocate—because they help protect your financial foundation.

What Is a Lady Bird Deed?

Another topic Florida residents often ask about is the Lady Bird deed, also known as an enhanced life estate deed. It’s a unique type of property transfer that lets you keep control of your real estate while planning for who receives it after your death.

Here’s how it works:

You (the property owner) deed the property to yourself for life, and name who will inherit it when you pass away (the remainder beneficiaries).
During your lifetime, you keep full control —you can live in the home, sell it, refinance it, or even change your beneficiaries at any time.
When you pass away, the property automatically transfers to the named beneficiaries without going through probate.

It’s called an “enhanced” life estate because, unlike a traditional life estate, you don’t give up control during your lifetime.

Benefits of a Lady Bird Deed

Avoids Probate: The property passes directly to your beneficiaries when you die, saving time and expense.
Keeps You in Control: You can change your mind, sell, or mortgage the property at any point.
Maintains Homestead Protection: In Florida, a Lady Bird deed typically preserves your homestead exemption and creditor protection.
May Help with Medicaid Planning: Because the transfer only occurs upon death, it may have advantages in certain Medicaid eligibility scenarios (though this should be discussed with a qualified attorney).

Important Considerations

While a Lady Bird deed can be a powerful tool, it’s not ideal for everyone. It’s important to consider:

Potential tax implications for your beneficiaries
Title insurance or lender requirements
Whether your overall estate plan includes other property or complex arrangements

Consulting with a Florida estate planning attorney ensures that a Lady Bird deed fits within your broader plan and complies with state laws.

The Bottom Line

Florida residents have strong legal options for protecting assets and planning for the future —from homestead protections and retirement exemptions to tools like the Lady Bird deed.

These strategies can help you secure your assets during your lifetime while simplifying the process for your loved ones later.