A Ladybird Deed typically retains for the benefit of the grantor the right to sell, lease or mortgage and keep all proceeds of the property and you can deed the property back (and do a new deed if you like), allows the grantor to keep all property tax exemptions and other tax advantages for the grantor, does not incur a transfer penalty for Medicaid, does not trigger a due-on-sale clause if there is a mortgage, but normally conveys warranties and can be signed by an agent acting under a Power of Attorney. As a result, if the grantor lacks mental capacity, it is always best to use a Ladybird Deed.
A Transfer on Death Deed gives no warranties, can be revoked by all grantors or by a new deed, does not result in a transfer penalty for Medicaid, retains all property tax exemptions and other tax advantages for the grantor and does not trigger a due-on-sale clause (if there is a mortgage on the property), but it cannot be signed by an attorney-in-fact under a Power of Attorney.
