A “Lady Bird Deed” is a way to transfer property to someone else outside of probate while retaining a life estate in the property. This type of deed got its nickname when President Lyndon B. Johnson used it to convey the property to his wife, Lady Bird Johnson.
Is a Lady Bird deed irrevocable?
Upon their passing, the estate transfers and becomes an irrevocable trust, which means it’s no longer subject to ordinary changes. Revocable trusts are similar to lady bird deeds in that they both offer significant amounts of control while the original owner is still alive.
How does a Lady Bird deed work for real estate?
In the handful of states that recognize them, ladybird deeds are a popular estate planning tool to avoid probate. Like regular life estate deeds, lady bird deeds work by dividing ownership of real estate into different time periods. A person who creates a lady bird deed transfers property to himself for his lifetime.
What happens if a life tenant dies without a Lady Bird deed?
However, if the life tenant died without making a conveyance, and the creditor failed to levy or execute on their judgment, no release or satisfaction of lien would be necessary. The remainderman would inherit the property subject to the lady bird deed free and clear of the unpaid debt.
What’s the name of the enhanced life estate deed?
These deeds are also called “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.
How does a estate deed work for a life tenant?
With a standard life estate deed, the life tenant (the homeowner) no longer has full control over his or her home. For example, the life tenant cannot sell or mortgage his / her home without beneficiary approval.
