Michigan is one of about 16 states that allow transfers of property a “Lady Bird Deed,” also known as an Enhanced Life Estate Deed. These types of deeds can be very useful in estate planning and elder law planning for people who own real property.
A typical Lady Bird deed allows the owner to transfer the interest in real property on the owner’s death (if the owner still owns) to a person of the owner’s choosing, while at the same time allowing the owner the right to retain a life estate in the property and the power to later convey the property if the owner chooses. If the property is transferred to the person specified on the owner’s death, it bypasses the probate process.
A Lady Bird deed can also assist in elder law planning. Lady Bird deeds have been approved by the Michigan Department of Health & Human Services, and because the owner retains an unrestricted interest in the property, the transfer does not count as a divestment for Medicaid purposes.
Consult with one of our Estate Planning Attorneys to discuss how a Lady Bird deed can be a useful tool in your Estate Plan.