Ladybird Deeds
A Ladybird Deed, also known as an enhanced life estate deed, is a legal document that allows property owners to transfer property to their family members when they die. With a Ladybird Deed, the owner can transfer the property without the family going through a probate court. This type of deed allows the property owner to occupy, lease or change beneficiaries during their lifetime without consulting with the beneficiaries. When the owner dies, the deed is passed to the beneficiaries without being revoked. The Law Office of Steve Ortega, PLLC, will look at your situation and determine if a Ladybird Deed is best for the transfer of your estate.
What are the advantages of a Ladybird Deed?
As mentioned above, an advantage is that the property owner retains the rights to the property during their lifetime and can make whatever decisions they want regarding the property. A traditional estate deed would give the beneficiaries some power to make decisions and be consulted if the owner wants to sell or lease out the property. A Ladybird Deed protects the property from creditors during the lifetime of the property owner. The best advantage of having a Ladybird Deed is that the owner will not lose Medicaid benefits since the property owner has the right to sell the property or revoke the deed.
Non-Probate Transfer
Once the owner of the property dies, the property is transferred immediately to the beneficiaries. There is no need to go to probate court for a Will to be validated. The beneficiaries listed in the Ladybird Deed obtain the property immediately after the owner dies, regardless of what the Will says. Avoiding probate court will save the beneficiaries a lot of time and money.
Can the Ladybird Deed be Revoked?
The Grantor can file a revocation or filing a subsequent conflicting Ladybird Deed. The Grantor can also revoke the deed if they sell, gift, or transfer the property during their lifetime. If the Grantor died and didn’t revoke the deed, the remainderman can file an affidavit and notify the Grantor has passed, and the remainderman is now the owner of the property.
