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A lady bird deed (also called a ladybird deed or an enhanced life estate deed) is a special form of life estate deed that gives the owner continued control over the property until his or her death. Once the owner dies, the property is transferred automatically to new owners without the need for probate.
The primary purpose of a Lady Bird deed and a traditional life estate deed is to avoid having the property go through probate upon the death of the granter. Additional benefits of a Lady Bird deed include: Being able to sell or mortgage the property, or outright cancel the deed.
The benefits of a Lady Bird deed After the owner's death, the default beneficiary only has to record the death certificate and file a Property Transfer Affidavit with the local assessor.
Creating a lady bird deed is very inexpensive. In fact, the approximate do-it-yourself cost is only $30. Professional assistance is also very affordable, and on average, costs between $200 and $400. This includes drafting the deed and filing it with the local register of deeds.
No, it is not, a Quit Claim Deed is not the same as a Ladybird Deed, but a Ladybird Deed is an Enhanced Life Estate.
A properly written, signed and filed Enhanced Life Estate Deed does supersede the terms of the owner's Will, so long as the granter has not exercised the retained right to reclaim ownership while living. Further, under the Deed title to the property passes to the grantee without needing to go through probate.
Lady bird deeds are available in only five states: Florida, Texas, Michigan, Vermont, and West Virginia.
Lady bird deeds differ from traditional life estate deeds in that the life tenant continues to have the right to sell or mortgage his / her home without beneficiary consent. In fact, the life tenant is even able to cancel the deed or change the beneficiary.
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