The Five Lady Bird Deed States

What Other States Use Instead

Most of the other 45 states have their own real estate probate-avoidance tools. The most common is the Transfer on Death (TOD) Deed or Beneficiary Deed — which provides probate avoidance for real estate without Medicaid protection in most states:

States not on either list — including New York, New Jersey, Pennsylvania, Georgia, and others — do not have a TOD deed law. In those states, a revocable living trust or joint tenancy are the primary probate-avoidance tools for real estate.

What Arizona Homeowners Should Use Instead

Arizona has its own highly effective probate-avoidance tool for real estate: the Arizona Beneficiary Deed, authorized under A.R.S. § 33-405.

Arizona's beneficiary deed:

• Avoids probate for the named real property at death
• Keeps the owner in full control during their lifetime — can sell, mortgage, or revoke without beneficiary consent
• Is fully revocable by recording a new deed or revocation
• Preserves the stepped-up basis for the beneficiary at death
• Allows multiple beneficiaries and per stirpes designations
• Is inexpensive — recording fees typically under $50

The primary difference from a Lady Bird Deed is Medicaid protection. Arizona's beneficiary deed does not carry the same Medicaid estate recovery protection that Lady Bird Deeds provide in Florida and Michigan. For Arizona clients with Medicaid planning concerns, a revocable living trust combined with Medicaid planning strategies is the more appropriate tool.

What Happens If You Use a Lady Bird Deed in the Wrong State

Using a Lady Bird Deed in a state that doesn't recognize it can create serious problems:

• Invalid title. The deed may not be recognized as valid, meaning the property still goes through probate at death — defeating the entire purpose.
• Title insurance issues. Title companies may refuse to insure a property with an unrecognized deed type on the chain of title — creating problems for any future sale or refinance.
• Unexpected tax consequences. Without the specific legal framework that makes a Lady Bird Deed work, the recording may be treated as a taxable gift or a completed transfer — with unintended tax and Medicaid consequences.
• Legal costs to fix it. Correcting an invalid deed on a property title requires legal action — adding expense and delay that the deed was supposed to eliminate.

Common Mistakes

• Using a Lady Bird Deed template from another state. Online legal forms don't always clarify which states they're valid in. A Florida Lady Bird Deed template used in Arizona creates an invalid document that may cloud your title.
• Assuming all TOD deed states have Medicaid protection. Most TOD deed states do not have the same Medicaid estate recovery protection that Lady Bird Deeds provide in Florida and Michigan. Verify your state's specific Medicaid recovery rules.
• Not consulting a local attorney for Medicaid planning. Medicaid rules are state-specific and change frequently. What works in one Lady Bird state may differ from another. Elder law attorney guidance is essential.
• Owning property in multiple states and using one deed type. If you own real estate in Florida and Arizona, you need Florida-specific tools for the Florida property and Arizona-specific tools for the Arizona property — not one document that covers both.
• Thinking a Lady Bird Deed is a complete estate plan. Even in Lady Bird states, this deed covers only one property. All other assets, incapacity planning, and family coordination still require additional documents.

Real-Life Example