5 Key Benefits of a Lady Bird Deed in Michigan

by Jeff Duneske

Do you want to ensure your Michigan home passes to your loved ones easily and affordably? A Lady Bird Deed, also known as an Enhanced Life Estate Deed, is a popular estate planning tool that can help you achieve this goal.

Here are 5 key benefits of using a Lady Bird Deed in Michigan:

1. Avoid Probate

Probate court can be a lengthy and expensive process for families. With a Lady Bird Deed, your home transfers directly to your beneficiaries, bypassing probate altogether. This saves your loved ones time, money, and stress during an already difficult time.

2. Maintain Control

Unlike other estate planning methods, a Lady Bird Deed allows you to retain full control of your home while you're alive. You can sell it, mortgage it, or even change your mind about who inherits it. This provides flexibility and peace of mind.

3. Minimize Taxes

A Lady Bird Deed provides a significant tax advantage for your beneficiaries. They receive a "stepped-up" cost basis on the home, inheriting it at its current market value. This can significantly reduce or eliminate capital gains taxes if they decide to sell the home later.

4. Protect Your Assets

A Lady Bird Deed can be a valuable tool for Medicaid planning. It can help protect your home from being counted as an asset by Medicaid, potentially allowing you to qualify for benefits without having to sell your home.

5. Simple and Affordable

Creating a Lady Bird Deed is a relatively straightforward process. You'll need to work with an estate planning attorney to draft the deed, which is then signed and recorded with the county. The cost is generally modest compared to other estate planning options.

Is a Lady Bird Deed Right for You?

While Lady Bird Deeds offer many advantages, they may not be the best fit for everyone. It's important to consult with an estate planning attorney to discuss your individual circumstances and goals. They can help you determine if a Lady Bird Deed is the right choice for your estate plan.

Have questions? Contact me anytime. I can help connect you with a trusted estate planning attorney to discuss your specific needs.

Click Here to Contact Us