What Is Lady Bird Deed?

What Is a Lady Bird Deed? In a lady bird deed, the owner of real estate transfers a contingent ownership interest in the property to designated beneficiaries, while retaining an enhanced life estate. The ownership interest of the beneficiaries does not vest until the death of the property owner.

What is the purpose of a Lady Bird deed?

A “Lady Bird Deed” is a way to transfer property to someone else outside of probate while retaining a life estate in the property. This type of deed got its nickname when President Lyndon B. Johnson used it to convey the property to his wife, Lady Bird Johnson.

Is a Lady Bird deed a good idea?

A Lady Bird deed can be useful if the grantor may someday want to apply for Medicaid to pay for long-term nursing care. To qualify for Medicaid, the value of your assets needs to be below certain limits. ... A Lady Bird deed avoids probate, so the home is not part of the probate estate and Medicaid cannot go after it.