Lady Bird Deeds and Transfer on Death Deeds
19 Pages Posted: 7 Dec 2018
Date Written: December 3, 2018
A carefully prepared estate plan often contains personal property which passes outside of the probate process such as beneficiary designations on bank accounts, life insurance, and retirement accounts. With regard to real property (often the family home), inter vivos trusts serve as the traditional non-probate transfer mechanism. Although this technique has many advantages, it adds complexity and cost to the estate planning process, especially for individuals with limited resources. Alternatively, estate planners may decide to use a life estate deed where the client retains a life estate and transfers the remainder interest to the desired recipient. A life estate deed, however, can not be changed after execution, creating problems if the client later wishes to undo the action or change the remainder beneficiary. Modern law now provides two alternatives to inter vivos trusts and life estate deeds: Lady Bird Deeds and Transfer on Death Deeds.
Keywords: lady bird deeds, transfer on death deeds, estate planning, deeds, enhanced life estate deed, Medicaid
JEL Classification: K11
Suggested Citation: Suggested Citation