What does a Lady Bird deed do?

A lady bird deed is a special kind of “life estate” deed that allows you to transfer real estate to a designee at your death without having to go through the probate process. Texas is one of only a few states that recognize them.

Where can you get a Lady Bird deed?

Lady bird deeds are available in only five states: Florida, Texas, Michigan, Vermont, and West Virginia. Key Term: Lady Bird Deed. The term lady bird deed comes from a fact pattern used by Florida attorney Jerome Ira Solkoff in his teaching materials.

What’s the difference between a Quit Claim Deed and a Lady Bird deed?

The difference between a lady bird deed and a quitclaim deed in Florida is that a lady bird deed allows the current property owner to retain an enhanced life estate in the property during his life, while a quit claim deed typically transfers all title and rights to the property to the grantee, or the person receiving the property.

What are the disadvantages of a Lady Bird deed in Florida?

The several disadvantages to lady bird deeds in Florida include: Lack of Asset Protection. A creditor may be able to place a lien or levy on the remainder interest in the lady bird deed. Ineffectiveness Against Florida Constitutional Restrictions.

Why are Lady Bird deeds important to Medicaid?

Important: Lady bird deeds are an estate planning tool, not a planning strategy to become Medicaid eligible. These life estate deeds allow Medicaid recipients to protect their homes as an inheritance for loved ones without jeopardizing Medicaid eligibility. There are other techniques that help persons become eligible for Medicaid.

Is the Lady Bird deed recognized in five states?

When we say that lady bird deeds are recognized in five states, we are saying that—as a general rule—title insurance companies in those five states will insure title that passes through lady bird deed. Other states will not.

Can a enhanced life estate have a Lady Bird deed?

The enhanced life estate is the key and distinguishing feature of lady bird deed. Only states that allow an enhanced life estate, therefore, can have a lady bird deed.

Can a Lady Bird deed be transferred to someone else?

In practical terms, this allows a property owner to “deed” property to someone else, but retain full control during their life. The maker of the lady bird deed can therefore even after execution of the deed decide to sell, mortgage, or transfer the property without consequence, leaving the remainderman with nothing.