A Lady Bird Deed, also known as an Enhanced Life Estate Deed, is a type of life estate deed that allows the owner to maintain control of a property until their death, at which point the property automatically transfers to a beneficiary without going through probate. It is a popular estate planning tool that ensures the property passes down without going through probate, which can be costly and time-consuming. Lady Bird Deeds are often used to keep property in the family without sacrificing Medicaid eligibility or subjecting the asset to state efforts to recover Medicaid costs after the owner dies.
Some advantages of a Lady Bird Deed include avoiding probate, maintaining rights to use, sell, and profit from the property during the owners lifetime, and the ability to change the deed at any time without the permission of the beneficiaries. Lady Bird Deeds divide the ownership of the home into two parts: during the owners life and after their death.
To create a Lady Bird Deed, the deed must include the grantors and beneficiarys names, reservation of lifetime rights to sell the property, notarization by a notary, and registration and filing with the county registrar of deeds. Lady Bird Deeds are not available in all states, and some states try to collect reimbursement for long-term care from property that does not go through probate. Currently, the following states allow Lady Bird Deeds: Florida, Michigan, Texas, Vermont, and West Virginia. The cost of creating a Lady Bird Deed is relatively inexpensive, with an approximate "do it yourself" cost of only $30 and professional assistance costing between $200 and $500 on average.
