Q:

What defines a "lady bird deed"?

A:

Quick Answer

A lady bird deed is also called an “enhanced life estate” deed that allows a beneficiary to inherit property while allowing the grantor to retain life residency in the property and avoid probate. The grantor keeps the right to profit from the property and sell the property at any time.

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What defines a "lady bird deed"?
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Full Answer

A lady bird deed is primarily used to avoid real estate going into probate. It can also be used to transfer other assets like furniture, home decorations, and other tangible personal property. Other benefits to using a lady bird deed include reserving life estate and keeping the ability to sell the property without the permission of the beneficiaries named in the deed.

Another benefit of a lady bird deed is that the property cannot be the subject of property creditors want to go after from the named beneficiaries. If a beneficiary of the property has judgments, government tax liens or other encumbrances, they do not become attached to the real estate tied to a lady bird deed. If the grantor feels that the liens will still be present at the time of their death, the grantor can remove the beneficiary from the deed and appoint another beneficiary to retain ownership of the property at the time of the grantor's death.

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