Your Houston homestead may be the most valuable and emotionally important asset you own. You want your family to keep it, avoid long court delays, and steer clear of unexpected Medicaid Estate Recovery Program (MERP) claims. A Texas enhanced life estate deed—often called a Lady Bird deed—can help you do all three when it is drafted and recorded correctly.
Understand What a Lady Bird Deed Actually Does
A Lady Bird deed transfers your home to a named beneficiary automatically at your death, yet you keep full control during life. You can sell, refinance, lease, or even revoke the deed without asking the remainder beneficiary for permission. Because title passes outside probate, your executor does not need a court order to move the house to your heir. That speed reduces carrying costs, prevents insurance lapses, and keeps the property out of probate delays that can stretch for months.
See Why It Matters for MERP Exposure
If you received long-term-care Medicaid, MERP may seek reimbursement from your probate estate. A properly structured Lady Bird deed causes the homestead to pass outside the probate estate, which often places it beyond MERP’s reach. You also preserve your homestead tax exemption and, if you qualify, the over-65 or disabled exemption during life. The key is getting the deed done before any incapacity event and recording it with the county so the plan is visible to title companies later.
Keep Your Flexibility and Your Financing Options
Many people worry a deed like this will block refinancing or home equity work. An enhanced life estate deed is built to preserve your full ownership rights during life. Lenders in the Houston market regularly underwrite loans where a Lady Bird deed is on record, as long as the deed language reserves the right to sell or mortgage without the beneficiary’s consent. You must still keep the house insured and taxes current, but the deed itself is not a roadblock to normal ownership.
Coordinate With Beneficiary Designations and Your Will
Your deed should match the rest of your plan. If your will leaves the house to Child A but your Lady Bird deed names Child B, the deed will control. Avoid accidental conflicts by listing the same beneficiary in both places or by using your will to address only backup scenarios. If you want multiple children to own the home, consider naming your revocable living trust as the remainder beneficiary, then let the trust handle co-ownership rules, buyout formulas, and sale instructions.
Decide How Heirs Will Share Costs and Benefits
A home needs taxes, insurance, and repairs no matter who owns it. If more than one person will inherit, add a short “house rules” memo to your plan that explains who can live there, what “fair rent” means, and how you will split major repairs. If you want the house sold after your death, say so and authorize your trustee to offer a short leaseback or cash-for-keys arrangement to ease any move. Clear expectations stop fights and protect equity.
Build a Simple Paper Trail Title Companies Trust
After you sign and notarize the Lady Bird deed, record it with the Harris County Clerk. Keep a copy with your homestead exemption notice, insurance declarations, and tax bills. Maintain proof of any major upgrades—roof, HVAC, plumbing—that could affect buyer confidence later. When your heir walks into a title office with a recorded deed and organized records, the retitling process goes quickly.
Handle Special Situations the Right Way
If you are married, coordinate the deed with community property rules. Both spouses typically sign to preserve homestead protections and avoid later challenges. If you have a mortgage, your lender’s deed of trust will remain in place; the remainder beneficiary takes the property subject to that lien. If you anticipate Medicaid in the future, speak with counsel sooner rather than later; timing and exact wording can matter.
Include Backups and What-Ifs
Life is unpredictable. Name a contingent beneficiary in the Lady Bird deed in case your first choice predeceases you. Consider whether you want the property to land in a trust for minor children or a beneficiary with special needs. A well-placed trust can manage the house, pay taxes, and avoid court-appointed guardianship.
Know When a Different Tool May Fit Better
If you own multiple Houston properties or want ongoing asset protection, a funded revocable trust might make more sense than a deed-by-deed approach. Trusts simplify management during incapacity and can coordinate rentals, insurance, and sales under one roof. You can still keep your homestead exemption while the trust holds title if you structure it correctly.
Put a durable shield around your home and a fast lane around probate. To draft, record, and coordinate a Lady Bird deed with the rest of your Houston plan, call McCulloch & Miller, PLLC at (713) 936-9073 and get a homestead strategy built for real life.