I'm in MI, in my 70's, and had an elder atty do my lady bird deed, will, POA, and medical directive, in 2020. Cost was $600. I have one home, and only one child. Many Attorney's want people to go with the more expensive irrevocable trust's, because they make more money off them. To hype the LBD as being "dated" is ridiculous, as it still does what it was intended to do, in the five state's that recognize it (MI, FL, TX, WV, and VT).
Thanks for sharing your experience! It's great to hear that a lady bird deed worked well for you in Michigan. You're absolutely right that they can be a valuable tool in specific situations. As the video mentioned, lady bird deeds are not necessarily "outdated," especially in states like Michigan where they are recognized. However, it's important to remember that they may not be the best fit for everyone. Here are some key points to consider: *Complexity: While lady bird deeds are simpler than irrevocable trusts, they may still require legal assistance to ensure proper execution and avoid potential complications. *Limited Scope: Lady bird deeds primarily address property transfer upon death. They don't offer the same level of asset protection or control over beneficiary access as some trusts do. *Medicaid Eligibility: While lady bird deeds generally don't impact immediate Medicaid eligibility, future regulations or changes in your circumstances could affect this. It's crucial to consult with an elder law or estate planning attorney to determine the best strategy for your individual needs. They can assess your specific assets, family situation, and goals to recommend the most suitable solution, whether it's a lady bird deed, a trust, or a combination of tools.
Can a ‘lady bird’ be filed without the children consent? Do all children (beneficiaries) have to sign an acknowledgment at the time the lady bird is drafted?
Great question! Yes, a ‘lady bird’ deed can be filed without the children’s consent, and no, they do not need to sign an acknowledgment. Thanks for watching!
Lady Bird deeds are great, but Lawyers hate things that are simple! Lady Bird deeds are simple. Needs name of the person that owns the property, the address and legal disscription, date, county, state. Then signed by the Grantor in frontbof a Notary and two witnesses. Very self explanatory. No probate, even has some protection against creditors. Person can keep all interest in there home while alive, then passes straight to kids (or whoever is named) on death of owner. Also has tax advantages. No gift tax too.
Thank you for sharing your thoughts on Ladybird deeds. As an elder law and estate planning attorney with over 20 years of experience, I appreciate the opportunity to clarify some points about these deeds. Ladybird deeds, also known as enhanced life estate deeds, can be a useful tool in certain circumstances. We help our clients with Ladybird Deeds occasionally. The complications of a Ladybird deed are often hidden by what appears on its face to be a simple document. It is important to understand that every legal tool has its context and limitations. While a Lady Bird deed might seem straightforward, the nuances of estate planning often require a more comprehensive approach. For instance: 1. Asset Protection: Many believe the Ladybird deed protects the house from Medicaid spenddown. However, in Michigan, that will not help if the property is not their personal residence or if the house is sold before the death of the person who needs Medicaid. These types of deeds are often used by married couples, attempting to transfer upon the death of the second spouse to die. This creates a problem if the healthier / care-giver spouse dies first, and the surviving spouse can no longer live in the home. It does not create the protection the couple thought that they had. 2. Probate: Many people use Ladybird deeds to avoid Probate Court. However, Ladybird deeds can end up in Probate Court or worse, Circuit Court. If people die in the wrong order (example: child dies before parent) it could still end up in Probate Court. If the people receiving the property are fighting or cannot agree on what happens to the property next, then it will likely end up in Circuit Court with a Petition for Partition. 3. Lack of Precision: Is the property transferred by Joint Tenants or Tenants in Common? If it is Joint Tenants, you may be unintentionally cutting out the family of your deceased children. If it is Tenants in Common, it may end up in Probate if your child dies before you. 4. Complex Family Dynamics: Estate planning often involves complex family dynamics, blended families, or unique asset distributions that a simple deed might not adequately address. 5. Legal Nuances: The legal description, execution, and recording of deeds must be precise to avoid potential issues. Mistakes or omissions, even minor ones, can lead to significant legal problems down the road. Our goal is not to complicate simple solutions but to ensure that each client's unique needs are met with the most appropriate and effective planning strategies. Lady Bird deeds are a valuable tool in the right situation, but they are just one piece of the larger estate planning puzzle. Thank you for your engagement and for highlighting this important topic. If you or anyone else has further questions, we are always here to help.
In summary if you have multiple beneficiaries on a Lady Bird Deed they need to be on the same page with selling or keeping asset; otherwise, could end up worse than probate.
That is one red flag to watch for - however there are others. It's best to consult with a skilled Estate Planning Attorney before any type of deed work. Thanks for your input!
To give the classic "legal" answer: It depends! You will still want to connect with an Estate Planning attorney in your state to discuss your specific planning.
Thank you for the explanation....I understand that the original owner of the house is excluded from the first $250k ($500k for couples) of the capital gain from selling the house; once a Lady Bird Deed is written, when /if the owner decides to sells the house during their life time, will the owner still have that capital gain tax exclusion?
Hello! Thank you for watching. This is a great question. Here is our take: In Michigan, a Lady Bird Deed allows the property owner to retain full control over the property during their lifetime, including the right to sell, lease, or mortgage it without needing permission from the beneficiaries named in the deed. Because the owner maintains full control and ownership of the property until their death, they continue to benefit from the tax exclusions available to homeowners. Specifically, the capital gain tax exclusion permits homeowners to exclude a significant portion of the capital gain from the sale of their primary residence, provided they meet the IRS requirements. These include owning and using the home as their primary residence for at least two of the five years preceding the sale. Therefore, if the owner decides to sell their home during their lifetime, the use of a Lady Bird Deed in Michigan does not alter their eligibility for the capital gain tax exclusion. They will still qualify for the exclusion, assuming they meet the other IRS conditions related to ownership and use. This ensures that the benefits of the Lady Bird Deed do not come at the cost of losing valuable tax advantages.
That's a great question! The property owner would have to create a new deed listing the updated beneficiaries, and then register that new deed with the county.
Very good ! you explained this deed very well. you are one in a million !!!! most lawyers I have been watching just want to sell this LBD. You are honest .... God bless you !!!!
Hello and thank you for the video! Can you please tell me, if a Ladybird Deed can only be used for the owner's residence? Or can they be used to deed acreage/farm land to a biological child and or grandchild. It seems like this would be a great way to go for a friend of mine. He's had no contact with his only child for about 38 years (due to her mother running off with her). He's 75 and has just been diagnosed with a life-threatening kidney disease. We're not sure if his daughter has any children. However, she appears to be alive, well and living out of state. My friend doesn’t use computers, but I found her through Facebook and a Google search. I'm also wondering if this deed could work with per stirpes concept to pass to her kid(s), if she were to pass before my friend? Thanks so much! Shauna Franklin
Hello and thank you for watching! We're sorry to hear of your friend's diagnosis and would be happy to help. Unfortunately, there are many other questions we would need to ask before we could give any legal advice or direction on this complex situation. For the privacy of those involved, we wouldn't want to do that on this forum. If you could share our phone number with your friend (or even get him on the phone with you while you call) we can help give some direction (800) 990-6030.
I’m just watching this 11/16/22. I do have a situation currently that I would like advise on. I’m a single 64 yr old. I don’t have the resources to hire an attorney. Please advise me on what my next steps should be. Or shall I go forward with asking you for advise?
If you want your ladybird deed created correctly, you do need to work with an attorney who is licensed in your state. Sure, anyone can print a form off the internet, but there is no way in knowing it is the right form and completed in the way you need. More importantly, you may also not need a ladybird deed at all to accomplish your goal - it could be an entirely different planning tool altogether. As discussed in this video, ladybird deeds might actually be a BAD idea for what you are trying to accomplish. You also don't need a dentist to pull a tooth, but we suggest making an appointment with a professional.
I'm in MI, in my 70's, and had an elder atty do my lady bird deed, will, POA, and medical directive, in 2020. Cost was $600. I have one home, and only one child. Many Attorney's want people to go with the more expensive irrevocable trust's, because they make more money off them. To hype the LBD as being "dated" is ridiculous, as it still does what it was intended to do, in the five state's that recognize it (MI, FL, TX, WV, and VT).
Thanks for sharing your experience! It's great to hear that a lady bird deed worked well for you in Michigan. You're absolutely right that they can be a valuable tool in specific situations.
As the video mentioned, lady bird deeds are not necessarily "outdated," especially in states like Michigan where they are recognized. However, it's important to remember that they may not be the best fit for everyone.
Here are some key points to consider:
*Complexity: While lady bird deeds are simpler than irrevocable trusts, they may still require legal assistance to ensure proper execution and avoid potential complications.
*Limited Scope: Lady bird deeds primarily address property transfer upon death. They don't offer the same level of asset protection or control over beneficiary access as some trusts do.
*Medicaid Eligibility: While lady bird deeds generally don't impact immediate Medicaid eligibility, future regulations or changes in your circumstances could affect this.
It's crucial to consult with an elder law or estate planning attorney to determine the best strategy for your individual needs. They can assess your specific assets, family situation, and goals to recommend the most suitable solution, whether it's a lady bird deed, a trust, or a combination of tools.
Halfwsy thru and I cant take anymore. Not a lot of money to be made for a lawyer writing up a Lady Bird deed...End of story!
Can a ‘lady bird’ be filed without the children consent? Do all children (beneficiaries) have to sign an acknowledgment at the time the lady bird is drafted?
Great question! Yes, a ‘lady bird’ deed can be filed without the children’s consent, and no, they do not need to sign an acknowledgment. Thanks for watching!
Lady Bird deeds are great, but Lawyers hate things that are simple! Lady Bird deeds are simple. Needs name of the person that owns the property, the address and legal disscription, date, county, state. Then signed by the Grantor in frontbof a Notary and two witnesses. Very self explanatory. No probate, even has some protection against creditors. Person can keep all interest in there home while alive, then passes straight to kids (or whoever is named) on death of owner. Also has tax advantages. No gift tax too.
Thank you for sharing your thoughts on Ladybird deeds. As an elder law and estate planning attorney with over 20 years of experience, I appreciate the opportunity to clarify some points about these deeds.
Ladybird deeds, also known as enhanced life estate deeds, can be a useful tool in certain circumstances. We help our clients with Ladybird Deeds occasionally. The complications of a Ladybird deed are often hidden by what appears on its face to be a simple document. It is important to understand that every legal tool has its context and limitations.
While a Lady Bird deed might seem straightforward, the nuances of estate planning often require a more comprehensive approach. For instance:
1. Asset Protection: Many believe the Ladybird deed protects the house from Medicaid spenddown. However, in Michigan, that will not help if the property is not their personal residence or if the house is sold before the death of the person who needs Medicaid. These types of deeds are often used by married couples, attempting to transfer upon the death of the second spouse to die. This creates a problem if the healthier / care-giver spouse dies first, and the surviving spouse can no longer live in the home. It does not create the protection the couple thought that they had.
2. Probate: Many people use Ladybird deeds to avoid Probate Court. However, Ladybird deeds can end up in Probate Court or worse, Circuit Court. If people die in the wrong order (example: child dies before parent) it could still end up in Probate Court. If the people receiving the property are fighting or cannot agree on what happens to the property next, then it will likely end up in Circuit Court with a Petition for Partition.
3. Lack of Precision: Is the property transferred by Joint Tenants or Tenants in Common? If it is Joint Tenants, you may be unintentionally cutting out the family of your deceased children. If it is Tenants in Common, it may end up in Probate if your child dies before you.
4. Complex Family Dynamics: Estate planning often involves complex family dynamics, blended families, or unique asset distributions that a simple deed might not adequately address.
5. Legal Nuances: The legal description, execution, and recording of deeds must be precise to avoid potential issues. Mistakes or omissions, even minor ones, can lead to significant legal problems down the road.
Our goal is not to complicate simple solutions but to ensure that each client's unique needs are met with the most appropriate and effective planning strategies. Lady Bird deeds are a valuable tool in the right situation, but they are just one piece of the larger estate planning puzzle.
Thank you for your engagement and for highlighting this important topic. If you or anyone else has further questions, we are always here to help.
In summary if you have multiple beneficiaries on a Lady Bird Deed they need to be on the same page with selling or keeping asset; otherwise, could end up worse than probate.
That is one red flag to watch for - however there are others. It's best to consult with a skilled Estate Planning Attorney before any type of deed work. Thanks for your input!
So if theres only one person inheriting it shouldnt be a problem
To give the classic "legal" answer: It depends! You will still want to connect with an Estate Planning attorney in your state to discuss your specific planning.
Thank you for the explanation....I understand that the original owner of the house is excluded from the first $250k ($500k for couples) of the capital gain from selling the house; once a Lady Bird Deed is written, when /if the owner decides to sells the house during their life time, will the owner still have that capital gain tax exclusion?
Hello! Thank you for watching. This is a great question. Here is our take:
In Michigan, a Lady Bird Deed allows the property owner to retain full control over the property during their lifetime, including the right to sell, lease, or mortgage it without needing permission from the beneficiaries named in the deed. Because the owner maintains full control and ownership of the property until their death, they continue to benefit from the tax exclusions available to homeowners.
Specifically, the capital gain tax exclusion permits homeowners to exclude a significant portion of the capital gain from the sale of their primary residence, provided they meet the IRS requirements. These include owning and using the home as their primary residence for at least two of the five years preceding the sale.
Therefore, if the owner decides to sell their home during their lifetime, the use of a Lady Bird Deed in Michigan does not alter their eligibility for the capital gain tax exclusion. They will still qualify for the exclusion, assuming they meet the other IRS conditions related to ownership and use. This ensures that the benefits of the Lady Bird Deed do not come at the cost of losing valuable tax advantages.
How do you get rid of a beneficiary of a LB deed that is registered at the county
That's a great question! The property owner would have to create a new deed listing the updated beneficiaries, and then register that new deed with the county.
Very good ! you explained this deed very well. you are one in a million !!!! most lawyers I have been watching just want to sell this LBD. You are honest .... God bless you !!!!
We're happy to know you found this video helpful. Thank you for letting us know, and thank you for watching!
Hello and thank you for the video! Can you please tell me, if a Ladybird Deed can only be used for the owner's residence? Or can they be used to deed acreage/farm land to a biological child and or grandchild. It seems like this would be a great way to go for a friend of mine. He's had no contact with his only child for about 38 years (due to her mother running off with her). He's 75 and has just been diagnosed with a life-threatening kidney disease. We're not sure if his daughter has any children. However, she appears to be alive, well and living out of state. My friend doesn’t use computers, but I found her through Facebook and a Google search. I'm also wondering if this deed could work with per stirpes concept to pass to her kid(s), if she were to pass before my friend?
Thanks so much!
Shauna Franklin
Hello and thank you for watching! We're sorry to hear of your friend's diagnosis and would be happy to help. Unfortunately, there are many other questions we would need to ask before we could give any legal advice or direction on this complex situation. For the privacy of those involved, we wouldn't want to do that on this forum. If you could share our phone number with your friend (or even get him on the phone with you while you call) we can help give some direction (800) 990-6030.
I’m just watching this 11/16/22. I do have a situation currently that I would like advise on. I’m a single 64 yr old. I don’t have the resources to hire an attorney. Please advise me on what my next steps should be. Or shall I go forward with asking you for advise?
You can give us a call, and we can help you find the right resource. (810) 694-9000.
you dont need a lawyer for l b deed
If you want your ladybird deed created correctly, you do need to work with an attorney who is licensed in your state. Sure, anyone can print a form off the internet, but there is no way in knowing it is the right form and completed in the way you need.
More importantly, you may also not need a ladybird deed at all to accomplish your goal - it could be an entirely different planning tool altogether. As discussed in this video, ladybird deeds might actually be a BAD idea for what you are trying to accomplish.
You also don't need a dentist to pull a tooth, but we suggest making an appointment with a professional.
You only need a lawyer if you don’t want a DIY stealing your home with a counterfeit trust or will
Could have said the same thing in one fifth the time...
Thanks for your feedback and thanks for watching! We have shorter videos on our channel and social media as well. We hope you'll check them out.
He wants to cover all aspects. If people dont want to know why listen. Co.e back when you have time or don't
19 minutes and 20 seconds in...I'm going to start off...
Oh God get to the point already
long winded
too much rambling
my dad died and left me a lady bird deedbut he has a wafe on the deed
We are so sorry for your loss. If you are looking for help or next steps, we suggest contacting an estate planning attorney near you.