Simple Estate Planning Utilizing a Ladybird Deed (Enhanced Life Estate Deed)

What is a Ladybird Deed?

This is a special type of deed that allows the property owner (also known as the Grantor) to remain in full control of the property during their lifetime (including the power to mortgage or sell) while naming one or more persons/entities (also known as Remainderman) to automatically inherit the property upon the property owner (Grantors) death.

What are some of the Benefits of a Ladybird Deed?

1. Avoiding Probate

   A Primary advantage of a Lady Bird Deed is that the property directly passes to the named remainderman, bypassing the probate process that a Will would require if the property passed by will. Upon the last property owner’s death, ownership transfers directly to the named remaindermen without the need for court involvement.
   

2. Retaining Control During the Property Owners Life

   Traditionally a Life Estate deed is just that the property owner only holds title for their lifetime, and any changes to the property, or liens on the property would require the consent of any remaindermen (remaining owners who own after the property owner’s life). A Ladybird deed is different, you retain all control including the right to sell because the remaindermen do not receive any interest in the life estate deed until the passing of the property owner
   

3. Cost Effective Estate Planning

   There are other options available for estate planning that will allow for the smooth transfer of property outside of probate, including the establishment of a Trust, however, trusts are oftentimes far more complex and significantly more expensive both in establishment and administration. Once a ladybird is completed, executed, and recorded, there is little else that needs to be done and no real administration requirements for the transfer to occur after the death of the last property owner.

How do you determine if this is the right tool for you?

Determining what is the best and most cost-effective and balanced estate planning method is not a one-size fits all approach. Each person and/or family will have very specific needs and goals. A consultation with an Attorney who focuses on those details and is willing to tailor their services to fit your goals is required.

Let The Tanios Law Firm assist you with reaching your goals with a Free consultation. Call attorney Alexander (Alex) Tanios today at 407-276-8229 to discuss us working for you to reach your goals!