A Lady Bird Deed, also known as an enhanced life estate deed, is a valuable estate planning tool that allows seniors to protect their homes from Medicaid estate recovery while maintaining control over their property du
ring their lifetime. This deed enables the property owner to retain the right to sell, mortgage, or modify the property without needing permission from the designated beneficiaries. Upon the owner’s death, the property automatically transfers to the named beneficiaries, bypassing probate and safeguarding the home from Medicaid claims.
Benefits of a Lady Bird Deed:
- Avoids Probate: The property passes directly to beneficiaries without the need for probate proceedings, ensuring a seamless transfer.
- Medicaid Asset Protection: Since the owner retains control during their lifetime, the transfer does not affect Medicaid eligibility or trigger penalties, protecting the home from estate recovery.
- Retained Control: Owners can sell, lease, or modify the property without beneficiary consent, providing flexibility and autonomy.
- Tax Advantages: Beneficiaries may receive a stepped-up basis, potentially reducing capital gains taxes if they decide to sell the property.
Considerations:
- State Availability: Lady Bird Deeds are recognized in a limited number of states, including Florida, Texas, Michigan, Vermont, and West Virginia.
- Legal Requirements: Proper execution of the deed is crucial. It’s advisable to consult with an experienced estate planning attorney to ensure compliance with state laws and alignment with your estate planning goals.
For personalized assistance with setting up a Lady Bird Deed in Miami, Florida, you can contact:
Yanitza Schoonover
6303 Waterford District Drive Suite 400
Miami, FL 33126
Phone: 305-299-7496
Website: https://estateplanningattorney.us/
Implementing a Lady Bird Deed can provide peace of mind, knowing that your home is protected and will transfer smoothly to your chosen beneficiaries upon your passing. Planning ahead with this estate planning tool ensures that your property remains in the hands of your loved ones, free from the complications of probate and Medicaid estate recovery.
