Lady Bird Deed
It has been suggested that we put our house in a Lady Bird deed to avoid probate. Is this a good idea? We do not own a business or land. All assets are in a financial account or bank. Thanks.
Terry Says
A Ladybird Deed is a way to transfer title to property after death, without going through probate. They are only recognized in a few states — notably Florida, Texas, Michigan, Vermont and West Virginia.
Probate is the process of changing legal title to a property,thus avoiding the costly and time consuming process of probate. It does NOT save on taxes.
I suggest you contact an estate planning attorney in YOUR STATE to determine what is the best way to transfer title after your death. And be aware, that if you currently hold title in joint name with rights of survivorship, there will be no probate until the survivor passes.
But if you were to create a revocable living trust and change title of the house into the RLT (no tax conswequences), then if one owner had dementia or a stroke, for example, and could not legally act, the trustee would have the power to sell the house even if the owner could not sign documents.
Confused? That’s why estate planning is not a job for “it has been suggested”!
Find an estate plannign attorney in your state at https://search-attorneys.com/
