Lady Bird Deeds are a commonly used option in Texas and very well could be the right elder law solution for you and your family’s property transfer. It can also be a beneficial tool in sorting out your Medicaid eligibility.
Otherwise known as Enhanced Life Estate Deeds or Transfer On Death (TOD) Deeds, Lady Bird Deeds are a way to transfer property to heirs outside of probate while still retaining the property in the trustees name.
The deed changed names to the Lady Bird Deed when the lawyer who created the deed used members of Lyndon B. Johnson’s family in an example of how the form could work.
The Lady Bird Deed is particularly advantageous because the property grantor retains the rights to use the property towards profitable ends or sell the property outright, without consent of the named grantees. Transfer of the property, after the trustee dies, happens when beneficiaries simply file the death certificate at local county offices.
How It Helps With Medicaid
The deed can also be a crucial component when applying for Medicaid.
To be eligible for Medicaid, applicants cannot have transferred any property within 5 years of submitting an application. The Lady Bird Deed offers a workaround to this stipulation by allowing you to transfer property rights and retain control of the property, all without having it count as a transfer of assets.
Currently only 15 states accept Enhanced Life Estate Deeds:
- New Mexico
If you or a loved one are currently looking to file an Enhanced Life Estate Deed, contact the law offices of Christina Lesher (713)529-5900 to schedule an appointment today.