Tampa Lady Bird Deed Frequently Asked Questions
Will recording a Lady Bird Deed trigger my mortgage's due-on-sale clause?
This is the single most common worry among mortgaged homeowners, and federal law addresses it directly. The Garn-St Germain Depository Institutions Act, at 12 U.S.C. § 1701j-3(d), lists transfers on which a lender may not exercise a due-on-sale clause for residential property of fewer than five dwelling units. Those include “a transfer by devise, descent, or operation of law on the death of a joint tenant or tenant by the entirety,” “a transfer to a relative resulting from the death of a borrower,” and “a transfer into an inter vivos trust in which the borrower is and remains a beneficiary and which does not involve a transfer of occupancy rights.” A Lady Bird Deed does not change occupancy and leaves you in full control, and Florida lenders have long treated these deeds as unremarkable. Read your own mortgage, because it is your contract, but this is not the obstacle people fear.
Does the mortgage disappear when my children inherit the house?
No, and this is the part people miss. A Lady Bird Deed transfers title. It does not touch the lien. Your beneficiaries receive the house subject to the mortgage, and if they want to keep it, someone has to keep paying it. That is not a criticism of the deed, because the same would be true through probate or a trust. It is simply the thing to tell your family in advance, along with who services the loan and roughly what is owed.
Can my heirs assume the loan or do they have to refinance?
It depends on the loan and the servicer, but federal law is more helpful here than most people expect. Where a successor in interest acquires the property on the death of a borrower, mortgage servicing rules generally require the servicer to communicate with that person about the loan and about available options, rather than treating them as a stranger to it. Some loans are assumable outright, some are not, and some families refinance. The practical step is the same either way: contact the servicer early, in writing, and establish who they should be dealing with.
Does the documentary stamp tax change because my house is mortgaged?
It can, and this is the question worth answering before signing. The Florida Department of Revenue concluded in Technical Assistance Advisement 20B4-004 that an enhanced life estate deed is not subject to documentary stamp tax, because no present beneficial interest transfers when the deed is signed. The analysis turns on consideration, and an outstanding mortgage is treated as consideration. Hillsborough County applies the standard statewide rate of $0.70 per $100 on taxable deeds. A Technical Assistance Advisement binds the Department only as to the taxpayer and facts presented, so a mortgaged property deserves the specific question rather than a general assumption.
Where is a Lady Bird Deed recorded in Hillsborough County?
With the Hillsborough County Clerk of Court & Comptroller, in the Official Records. The downtown recording counter is at 401 Pierce Street, Room 140, Tampa, with additional service locations in Brandon and Plant City. Documents may also be mailed to the Clerk at P.O. Box 3249, Tampa 33601-3249, or submitted through e-recording via an approved vendor. The Clerk notes that time-sensitive documents are best submitted in person, since mailed and electronically submitted documents are processed in the order received.
Can I still refinance after recording a Lady Bird Deed?
Yes, and this is the practical difference between an enhanced life estate deed and a traditional one. The enhanced reservation preserves your power to mortgage the property without the joinder or consent of the people named to receive it. Under a traditional life estate deed you would need every one of them to sign, which is exactly the kind of locked door that makes an ordinary refinance impossible. In practice a title underwriter will read the deed to satisfy itself the reservation is there, which is one more reason the drafting matters.
Will a Tampa Lady Bird Deed affect my homestead exemption?
A properly drafted deed should not affect your homestead exemption or your Save Our Homes assessment cap during your lifetime. You retain an enhanced life estate, you remain in possession, and the Hillsborough County Property Appraiser continues to treat you as the owner of record. The cap resets at your death on the change of ownership, which happens with or without the deed.
How long does Hillsborough County probate take without a deed?
It varies with the estate and the docket, and Hillsborough runs one of the busier probate divisions in the state. A formal administration involves appointing a personal representative, publishing notice to creditors, waiting out the claim period and then closing the estate, which is typically measured in many months rather than weeks. Summary administration is shorter where it is available, and effective July 1, 2026 the non-exempt asset ceiling rose to $150,000 for deaths on or after that date. A Lady Bird Deed removes the home from that process entirely.
Does a Tampa Lady Bird Deed protect the home from Medicaid estate recovery?
Florida limits Medicaid estate recovery to assets that pass through the probate estate. Because a Lady Bird Deed moves the home outside probate, it is one of the standard tools for reducing exposure on a Florida homestead. It does not qualify anyone for Medicaid, the five-year look-back still applies to other transfers, and the protection depends on the home keeping homestead status and passing to heirs. See our Medicaid guide.
Do my beneficiaries get a stepped-up basis?
Generally yes. Because you keep the enhanced powers, the property remains in your gross estate at death, which normally produces a stepped-up cost basis, meaning their basis becomes the date-of-death value rather than what you paid. In a market that has appreciated as sharply as Tampa's, that can be worth considerably more than the probate saving. Deeding the home to a child during your lifetime typically forfeits it. Confirm with a tax advisor.
Can a Tampa Lady Bird Deed be changed or revoked later?
Yes. You can sell the property, refinance it, lease it, add or remove beneficiaries, or revoke the deed entirely without the consent of the people named to receive it. A new deed is prepared and recorded to make the change effective. Nothing you sign today restricts what you can do with your own home tomorrow.
More general questions are answered on our Florida Lady Bird Deed FAQ page.
