A Lady Bird deed, also known as an Enhanced Life Estate Deed, is a special legal document used in estate planning to transfer property. It allows a property owner (the grantor) to retain full control over their property during their lifetime while naming beneficiaries who will automatically inherit the property upon the owner's death. Key features include:
- The property owner keeps full control, including the right to live in, use, sell, mortgage, or change the deed without needing beneficiary approval.
- The property automatically transfers to named beneficiaries upon the owner's death, bypassing probate court, thus saving time and money.
- The owner can change or revoke the deed at any time during their life.
- This type of deed provides benefits like avoiding probate, Medicaid estate protection, and tax advantages for beneficiaries.
Lady Bird deeds are available in a limited number of states including Florida, Texas, Michigan, Vermont, and West Virginia. They are seen as a flexible and effective estate planning tool compared to traditional life estate deeds because the owner retains all decision-making power during their lifetime. In summary, a Lady Bird deed allows the owner to control their property during life and pass it directly to chosen heirs without probate after death.
