December 22, 2021
What is a Lady Bird Deed in Michigan And Why Would I Want One to Avoid Probate and Estate Recovery
Do you have a property that you want to pass down to your children, but don’t want the hassle of going through probate? If so, a ladybird deed might be right for you. A ladybird deed is a special kind of property transfer that allows you to avoid probate and keep the property in your family. Here’s what you need to know about this convenient option.
Lady Bird Deeds are a type of property transfer that allows you to pass your house on while still owning it, and they got their nickname from when President Lyndon B Johnson used this deed for his wife. In Michigan people prefer calling these enhanced life estate deeds rather than just “Ladybirds.”
What are The Benefits of a Ladybird Deed?
The benefits of a Lady Bird Deed are numerous. For example, it can help bypass probate and provide Medicaid eligibility (5-year look-back). The grantor may also sell the property while they’re still alive so that he or she has more time to enjoy what’s been left behind! This document could save you from having any tax liability in case something was given as an outright gift- which isn’t always great if there were other relatives who wanted their share too but couldn’t afford to pay out at once.
What is a Life Estate in Michigan?
What is a life estate? A Life Estate can be defined as the retaining of certain property rights, even though one’s deed has been transferred to someone else. In other words, when we transfer our deeds they still say “I am transferring title” but also reserve certain powers for ourselves in order not totally lose that which makes us who we are – like being able to sell or mortgage on occasion while retaining access if needed at any given time during your ownership; these reserved abilities allow you more control over what happens with this asset than just passing it off could ever provide
Is a Ladybird Deed/Life Estate Right for You?
Is a Ladybird or Life Estate Deed the best solution for you? Life Estates come with some advantages but generally speaking, they are not as advantageous by themselves. When combined with other planning tools such as wills and trusts then this can be an excellent way to go. A ladybird may seem like something from Shakespeare’s era – it is simple in design yet powerful enough to last through generations of women who pass their land on through marriage so there will never ever have been any lack at home!
Can’t I just Deed My Property to My Kids?
Joint ownership is one of the big mistakes we see people make because you are opening yourself up to all the liabilities of anyone you name to that joint piece of property. When I think of the perfect way to pass property down, life estates/Ladybird Deeds come to mind.
By doing a Ladybird deed in Michigan, you are in control of the asset while alive and well, then upon death it goes to the trust or whoever you’ve named as a beneficiary.
How can you use a Ladybird Deed as part of your overall Estate Plan?
Why go through probate when you can avoid it? The process of transferring property to trust instead, for those who have life estate rights. This way your assets won’t be subject to the risk that they’ll attach themselves onto what belongs in Probates jurisdiction; nor will any additional fees come up during this time period like there would if everything went through probate in Michigan. At first, glance, using trusts may seem more complicated than just giving someone else partial ownership but rest assured–in most cases all things are simpler once we get down beneath their surface!
How to Get Started On Your Michigan Ladybird Deed
Thinking about the ladybird deed as part of your estate plan in Michigan can save you time and money. A ladybird deed is a way to avoid probate, ensure that your assets stay within the family after death, and keep things simple for yourself or loved ones who are managing your affairs if something should happen to you. If this sounds like an attractive option for you, contact us at 844-885-4200 so we can get started together on putting one together for you today!