Suppose you are looking for a cost-effective approach to estate planning that is less expensive than a trust and avoids probate court upon your passing. In that case, a Lady Bird Deed may be an alternative, but only in specific situations. Lady Bird Deeds are effective and often used if your main valuable asset is a home, you do not want to pay for a trust, you have adult children, and you want your family to avoid probate court upon your passing.
This special deed gives your beneficiaries tax advantages upon your passing and, more importantly, allows you to keep control over your home throughout your lifetime. Once you pass away, it automatically transfers to your beneficiary. This differs from a typical warranty or quitclaim deed without Lady Bird Deed language, which would usually require your family to go through probate court to transfer the home out of your name after your passing.
Lady Bird Deeds are not flexible, however, and may not offer the same benefits as a trust or a will. Still, they can be helpful in certain situations. Lady Bird Deeds are also used in Medicaid planning, where you can avoid Medicaid Estate Recovery upon your passing so that Medicaid cannot claim your home for repayment of long-term care services provided during your lifetime.
A Lady Bird Deed is a deed that changes the title of your real estate. Although you maintain complete control of your property, the language of your deed changes significantly. An attorney should advise you before using this type of deed.
