Lady Bird Deed

31 Oct 2023 · 1 min

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1:01

In this segment, the speaker explains what a Lady Bird deed is, a specialized form of enhanced life‑estate deed available in certain states. It allows a homeowner to retain full ownership and control of the property during life while designating beneficiaries who will automatically receive the home upon death, thereby avoiding probate and often being cheaper than establishing a trust. The deed also can protect the home from Medicaid recovery in some cases and remains revocable or changeable while the owner is alive. The speaker highlights key advantages—cost efficiency, probate avoidance, Medicaid protection, and retained control—while noting important drawbacks, such as the risk of the named beneficiary dying before the owner, which could force the property into probate unless the beneficiary designation is updated, and other unspecified limitations.

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So TL Mama 2 wants to know what I think of a Lady Bird deed. A Lady Bird deed, if you're in a state that offers that type of solution, is a really good way to pass on your home to someone after you're gone. As she says there, it's cheaper than a trust and it avoids probate as well as protects your home from Medicaid recovery in some situations. So a Lady Bird deed is essentially just a type of life estate deed that allows you to maintain control and ownership over a home during your lifetime., but at your death, the home will automatically pass to the person or persons that you've named as beneficiaries. But, and this is important, it's different from a regular life estate deed because with a Lady Bird deed, you still have the right to revoke it or change it during your lifetime. There are some downsides to a Lady Bird deed. First would be if the person you've named as beneficiary passes away before you do. If that were to happen, the house would still have to go through probate unless you had changed the beneficiary during your lifetime. Another drawback is where you