Houston Estate Planning and Elder Law Attorney Blog
One common goal in the estate planning process is crafting a plan that allows your beneficiaries to avoid probate. Probate can often be a long and drawn-out process, and many of our clients use various estate planning tools to avoid probate court altogether. One such tool, which we discuss on today’s blog, is the lady bird deed.
What Is the Lady Bird Deed?
The lady bird deed is a kind of deed that allows a homeowner to directly pass his property to a beneficiary upon his death. The name “lady bird deed” came from former president Lyndon Johnson’s wife, Lady Bird Johnson. President Johnson transferred his property directly to his wife upon his death, and the now common estate planning strategy ended up bearing her name.
With a lady bird deed, the homeowner formally names the beneficiary that will inherit the property. At the same time, though, as long as he is alive, the homeowner retains full control of the property. He can mortgage the property, sell it, lease it, or reside in it according to his own wishes. He is not required to consult the beneficiary for any major or minor decisions. Then, as soon as he dies, the property goes straight to the homeowner’s beneficiary without any probate court’s involvement.
Why Consider Using a Lady Bird Deed?
The biggest advantage of the lady bird deed is that it keeps the decedent’s real estate out of probate. This allows for greater efficiency, savings, and privacy for all involved. The lady bird deed also helps beneficiaries understand exactly what they will inherit before the decedent passes away. When a homeowner consults with his beneficiary about being put on the deed during his lifetime, the beneficiary can take the time to learn about the implications of owning the property and have important conversations with the homeowner while they are both still around. This communication can go a long way in making sure the gifting of assets goes smoothly.
The lady bird deed can also come in handy if homeowners want to protect their property from Medicaid estate recovery claims. This possibility, however, is not available for all homeowners and should be considered with the help of an experienced Houston estate planning attorney.
Are You Looking for Your Houston Estate Planning Attorney?
At McCulloch & Miller, we are well equipped with creative, well-established estate planning strategies for our client community. If you don’t yet have a Houston estate planning attorney in your corner, know that you can count on us to guide you through the process and help you meet your goals. If you and your loved ones are looking for an experienced, empathetic, and thorough group of legal professionals, contact our firm at McCulloch & Miller.
For a consultation with a Houston estate planning attorney from our firm, give us a call as soon as possible at (713) 333-8900. You can also fill out our online form to tell us about your circumstances and have an attorney reach back out to you as soon as possible. Our law firm covers probate, estate planning, elder law, trust administration, special needs planning, and more.