Lady Bird Deeds
How a Solid Estate Plan from Our McKinney Lawyers Can Help
An Enhanced Life Estate Deed or a “Lady Bird Deed” is a deed
which can assist in accomplishing two main estate planning objectives:
- Avoiding probate by passing property to a beneficiary upon the death of
- Avoiding the “gift” designation under any Medicaid benefits
At the Willingham Law Firm, PC, we can assist you in creating this deed
for your loved ones. We have also created a brief summary below to help
you understand how a Lady Bird Deed works conceptually.
If you have additional questions, call our estate planning attorneys in
McKinney, (214) 499-9647, in Plano, (972) 848-3357, or in Frisco, at (469) 447-7757.
How Can a Lady Bird Deed Help You?
It is best to illustrate the benefits of this type of estate planning with
an example. Mary and David are 78 and 80 years of age. Mary and David
are financially struggling and only have a home to leave to their children,
Bill, Kevin, and Melissa, upon their death. Their home is worth about
$100,000. David and Mary live off Social Security and will be applying
for Medicaid benefits soon.
Mary and David want to keep their home until they pass but really want
to leave an inheritance to their children. If they were to gift their
home and within five years apply for Medicaid benefits, then Medicaid’s
fraudulent transfer rule would apply and the home would be subject to
a Medicaid lien.
In this case, Mary and David do have options to keep power of their homestead,
and to pass property to their children for an inheritance. A Lady Bird
Deed gives certain ownership rights to children but allows parents to
keep the power to sell, convey, mortgage, lease, and otherwise dispose
of the property. In addition, both parents will retain the rights to revoke,
amend, divest, replace, or change the homestead.
Through a Lady Bird Deed, Mary and David can secure an inheritance for
Bill, Kevin, and Melissa. In addition, this transfer avoids probate so
Bill, Kevin, and Melissa will not have to probate their parent’s home.
At The Willingham Law Firm, PC, our McKinney estate planning attorneys
can assist you in creating the necessary documents to protect your loved ones.
Contact us online today to schedule your