What is a Ladybird Deed?
A ‘Ladybird Deed,’ or enhanced life estate deed, is a document used in planning and can be very beneficial for avoiding probate and protecting the home in a Medicaid situation.
A Ladybird Deed keeps the title of the property in the homeowner’s name during their lifetime. While alive, they can sell, mortgage, or lease the property upon any terms they wish. If the home is not sold during the homeowner’s lifetime, the property transfers upon their death to the individual named in the deed and avoids the probate court. While this deed has many benefits, it can also have some negative effects and is not appropriate in every situation.
Categories: Estate Planning