These deeds are also call “enhanced life estate” deeds. With a standard life estate deed, you could name a beneficiary to inherit your property while you keep ownership of it for your lifetime, but with significant restrictions. You wouldn’t have the right to sell or mortgage the property and you might also be liable to the beneficiary you named if you greatly decreased the value of the property – for example, let a house fall into serious disrepair.
By contrast, an enhanced life estate deed (the Lady Bird deed) lets you:
- Avoid probate of the property
- Keep the right to use and profit from the property for your lifetime
- Keep the right to sell the property at any time
- Avoid making a gift that might be subject to tax
- Avoid jeopardizing your eligibility for Medicaid
If you have a mortgage on your property, it is advisable to seek the lender’s approval before signing a Lady Bird Deed. Some mortgage loans have provisions that enable a lender to call a loan due when you execute certain kinds of deeds.
Call the Law Offices of Debra G. Simms at 386.256.4882 to learn more.
This blog post is not case-specific and is provided only for educational purposes and is not intended to provide specific legal advice. Blog topics may or may not be updated and entries may be out-of-date at the time you view them.
