Ladybird Deeds (Enhanced Life Estate Deeds)
A Ladybird Deed, also known as an Enhanced Life Estate Deed, is a powerful estate planning tool that allows property owners to transfer real estate to their chosen beneficiaries automatically upon death, without the need for probate court. With a Ladybird Deed, the property owner retains full control of the property during their lifetime while ensuring a smooth, non-probate transfer to family members or heirs.
Unlike traditional life estate deeds, a Ladybird Deed allows the owner to sell, lease, mortgage, or change beneficiaries at any time without the beneficiaries’ permission. Upon the owner’s death, ownership transfers immediately to the named beneficiaries, and the deed is not revoked.
The Law Office of Steve Ortega, PLLC, can review your estate planning goals and determine whether a Ladybird Deed is the right solution for transferring your property while protecting your assets and benefits.
Advantages of a Ladybird Deed
One of the main benefits of a Ladybird Deed is that the property owner maintains complete ownership rights during their lifetime. The owner can make all decisions regarding the property without consulting beneficiaries, unlike traditional deeds that limit the owner’s control.
Additional advantages include:
–Avoids probate, saving time, legal fees, and court costs
–Protects Medicaid eligibility, as the property is not considered a completed transfer
–Creditor protection during the owner’s lifetime
–Flexibility to revoke or change beneficiaries at any time
-Immediate transfer of ownership to beneficiaries upon death
Because the owner retains the right to sell or revoke the deed, the property does not count as a disqualifying asset for Medicaid planning purposes.
Non-Probate Transfer of Property
A Ladybird Deed allows property to pass directly to beneficiaries upon the owner’s death, without court involvement. There is no need for probate or validation of a Will. Even if a Will states otherwise, the Ladybird Deed controls the transfer of the property.
Avoiding probate can significantly reduce delays, expenses, and stress for surviving family members while ensuring a seamless transition of ownership.
Can a Ladybird Deed Be Revoked?
Yes. A Ladybird Deed can be revoked at any time during the owner’s lifetime. The Grantor may revoke the deed by:
Filing a formal revocation
Recording a new, conflicting Ladybird Deed
Selling, gifting, or transferring the property
If the Grantor passes away without revoking the deed, the beneficiaries (remaindermen) may file an affidavit confirming the Grantor’s death, officially transferring ownership of the property.
Trusted Ladybird Deed Guidance for Texas Families
A Ladybird Deed can be an effective way to protect your property, avoid probate, and preserve Medicaid eligibility while maintaining full control of your real estate during your lifetime. Because every estate planning situation is unique, it is important to work with an experienced attorney who understands the legal and financial implications of this type of deed. The Law Office of Steve Ortega, PLLC, is committed to helping individuals and families create estate plans that provide peace of mind and long-term protection. Contact our office today to schedule a consultation and determine whether a Ladybird Deed is the right choice for your estate planning needs.