You can use these forms of deeds at any time. When To Consider Using The Lady Bird Deed Or Enhanced Life Estate Deed You should consult with an attorney about the law on this issue. Again, Texas law may be different on this point than other states. Currently, another major benefit of using a Lady Bird Deed or enhanced life estate deed is placing the property beyond the reach of a Medicaid lien. If you received Medicaid assistance during your lifetime which has not been repaid, the federal government can place a lien on property of your estate for the amount paid on your behalf, under certain circumstances. This may make the difference between qualifying and not qualifying or for how long you are disqualified from receiving benefits. The value of your interest in the property (your life estate) will be much less than the full value of the property in calculating your eligibility for Medicaid. If you are in a situation in which you are applying for Medicaid benefits, the Lady Bird Deed or enhanced life estate deed also is beneficial. The expense savings can amount to thousands of dollars. It may also eliminate the trouble and expense of probate or some other simpler non-probate procedure to transfer title to real estate on your death. The Lady Bird Deed or enhanced life estate deed makes the transfer of title to your beneficiaries on your death much quicker. Your attorney will need to research whether this deed can be used in the same way in other states. This unique special feature of the Lady Bird Deed is not recognized in all states, however, so out-of-state property may or may not be dealt with in this same manner. The Lady Bird Deed, if drafted properly, allows you as the owner of the “life estate” in the property to mortgage, lease, sell, change your beneficiaries, or even revoke the deed, without the consent of the remaindermen. ![]() The Benefits Of A Lady Bird Deed Your Rights of Ownership Retained During Your Life Upon your death, all that is required for full title to be transferred to your beneficiaries is the filing of an affidavit in the county property records reflecting the date of your death, referring to the recording information for the Lady Bird Deed, and reciting that there are no outstanding debts of the estate, or estate or inheritance tax due. Texas law allows you even to retain the property tax homestead exemption after the Lady Bird deed transfer. With this type of deed, you can name the beneficiaries you wish to receive real estate on your death, who are called “remaindermen”, but you retain all of the benefits of ownership of the property until your death. If you have drawn up this deed prior to your death, you might be able to avoid probate entirely, if the rest of your assets have beneficiary or payable-on-death arrangements. This tool can be used for all types of real estate interests, including mineral interests in Texas. ![]() ![]() Texas law has recognized an estate planning tool that is extremely effective and low cost, called a deed with an enhanced retained life estate or “Lady Bird” deed (there is a slight distinction between the two).
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