Ladybird deeds are a crucial part of elder law planning and Medicaid planning. If you are on Medicaid or think you might be soon, you need a ladybird today.
What is a ladybird deed? It’s a deed where the owner of the property deeds his or her interest in the property to someone else at the owner’s death.
Why would someone want a ladybird deed? Two reasons:
- A ladybird deed allows you to avoid going through probate for the property covered in the deed
- A ladybird deed protects your property against the state or a governmental agency trying to recover against your property for health care costs.
- Other great benefits of ladybird deeds:
You can always revoke the deed and take back the transfer
Other family members may be rewarded for helping the client by a change of estate plan implemented simply by signing and recording a new Transfer on Death Deed.
If someone in the family falls on hard times an needs extra help, the estate plan can be changed with a new deed.
The grantor reserves the right to sell or mortgage the property without consent of the grantee.
If creditors of a remainder owner threaten action affecting the property, the grantor can protect his or her interests by appointing the remainder to someone else. This would not be a fraudulent transfer if the life tenants are not “debtors” as to the creditors.
The deed creates no Medicaid transfer penalty; and at the death of the grantor, title will pass under such a deed outside the grantor’s probate estate and will therefore not be subject to Texas estate recovery under the current state law.
Call us today at 817.638.9016 to discuss ladybird deed and other ways to protect your property from the state and from probate.