04/10/2020
Contact us @ (517) 853-1500 to learn more about whether this type of deed may be right for you.
Did you know that many Texans claim that a Lady Bird Deed got its name because President Lyndon B. Johnson used this type of deed to convey property to his wife Lady Bird Johnson?
A Lady Bird Deed (aka an Enhanced Life Estate Deed) allows the grantor to transfer a real property to a named beneficiary, the grantee, upon their death without having to go through probate. This type of deed allows the grantor to keep all rights to their property (including to sell or mortgage) during their lifetime. The grantee only becomes attached to the property if the grantor still owns it upon their death.
If your main assets are Real Estate, a Lady Bird Deed may be worth checking out, especially if you qualify for Medicaid or just want to keep your Estate Plan simple.
This option:
-Avoids expensive, time-consuming probate
-Keeps home in only your name until your death
-Reduces future capital gains tax
-Does not count against gift tax exemption until death
-Prevents the state from putting a claim on your home to collect on Medicaid benefits during probate (Medicaid Recovery)
-Has similar outcome to a Living Trust in terms of what happens to you property, with lower cost
If you own other significant assets besides property or are leaving your home to more than one beneficiary, you may want to speak to our Estate Planning attorneys about a more comprehensive estate plan, such as a Trust.
