Homeowners looking to protect their property and ensure a smooth transfer to heirs should consider a Lady Bird Deed, also known as an enhanced life estate deed. This unique estate planning tool allows you to retain full control of your property during your lifetime while ensuring it automatically transfers to your beneficiaries upon your passing.
How Does a Lady Bird Deed Work?
Unlike a traditional life estate deed, a Lady Bird Deed gives you greater flexibility. With this deed, you can:
✅ Sell the property without beneficiary consent
✅ Mortgage or refinance at any time
✅ Change beneficiaries or cancel the deed entirely
✅ Continue living in the home with full ownership rights
This enhanced control makes a Lady Bird Deed an attractive option for many property owners planning their estates.
Benefits of a Lady Bird Deed
A Lady Bird Deed offers several key benefits:
- Avoids Probate – Property transfers immediately to beneficiaries, bypassing probate court.
- Medicaid Protection – Can help protect home equity while maintaining Medicaid eligibility.
- Tax Advantages – May reduce capital gains taxes for your heirs by allowing a stepped-up basis.
- Maintains Control – You keep all rights to use and modify the property during your lifetime.
- Simple and Cost-Effective – Less complex and more affordable than setting up a trust.
For more details, check out How a Lady Bird Deed Can Help with Medicaid Planning.
Who Can Benefit from a Lady Bird Deed?
This type of deed is ideal for:
✔️ Seniors looking to protect assets from Medicaid estate recovery
✔️ Homeowners wanting a simple way to pass property to heirs
✔️ Families looking to avoid the time and expense of probate
How to Set Up a Lady Bird Deed
Setting up a Lady Bird Deed involves several steps:
1️⃣ Property Assessment – Review your current deed and property details.
2️⃣ Beneficiary Selection – Choose who will inherit the property.
3️⃣ Deed Preparation – Work with an attorney to draft the legal document.
4️⃣ Recording the Deed – File the deed with the county recorder’s office.
An experienced estate planning attorney can help ensure your deed is properly structured to meet your asset protection goals. Learn more about estate planning options.
What States Recognize Lady Bird Deeds?
Currently, only five states recognize Lady Bird Deeds:
📌 Florida
📌 Texas
📌 Michigan
📌 Vermont
📌 West Virginia
If you live in one of these states and want to explore this option, consult a legal professional.
Get Expert Legal Assistance
For personalized guidance on Lady Bird Deeds and other estate planning solutions, contact:
📍 Yanitza Schoonover
📍 6303 Waterford District Drive Suite 400
📍 Miami, FL 33126
📞 305-299-7496
🌐 EstatePlanningAttorney.us
Final Thoughts
A Lady Bird Deed is an effective and flexible estate planning tool that allows you to maintain control of your property while ensuring it passes smoothly to your beneficiaries. By understanding your options and working with a qualified estate planning attorney, you can protect your assets and create a secure plan for the future.
External Resources for Further Reading:
🔗 Medicaid Estate Recovery Rules (Medicaid.gov)
🔗 Gift Tax Rules (IRS.gov)
