Lady Bird Deeds and Enhanced Life Estates

What Every Michigan Homeowner Should Understand Before It Is Too Late

By Jeff Duneske | Northville, Michigan

After more than 25 years helping families across Northville, Novi, South Lyon, Plymouth, and the surrounding Metro Detroit communities, one of the most important conversations I have is about something other than buying or selling.

It is about protecting the home you worked your whole life to build.

If you own a home in Michigan and have never heard of a Lady Bird Deed, also known as an Enhanced Life Estate Deed, your family could face a long and expensive probate process that may have been completely avoidable.

I am not an attorney. This article is for educational purposes only. I always recommend speaking with a qualified Michigan estate planning attorney. But after seeing firsthand what happens when families plan and when they do not, I believe every homeowner should at least understand the option.

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What Is a Lady Bird Deed

A Lady Bird Deed allows you to name who will receive your home automatically when you pass away, while keeping full control of the property during your lifetime.

That means you can:

• Sell the home

• Refinance it

• Change your beneficiaries

• Revoke the deed entirely

You keep all ownership rights while you are alive. When you pass away, the property transfers directly to your named beneficiary without going through probate.

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What Is an Enhanced Life Estate

The Enhanced Life Estate is the legal structure behind the Lady Bird Deed.

With a standard life estate, you give up certain control as soon as the deed is signed. An enhanced version preserves your authority.

Think of it.
You hold all the keys during your lifetime.
When you pass, ownership transfers quietly and directly to the person you selected.

No court delay. No public probate record for the home.

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Why Avoiding Probate Matters in Michigan

Many families do not realize what probate really means until they are in it.

In Michigan, probate can take months, sometimes much longer, depending on complexity and the court backlog. During that time:

• The home often cannot be sold

• Court approval may be required

• The process becomes public record

• Attorney and administrative costs add up

• Family members may disagree on next steps

I have sat at kitchen tables with adult children who assumed they could list and sell a parent’s home immediately, only to find out they must wait.

On the other hand, I have worked with families who planned. When the time came, the transition was private, efficient, and far less stressful.

The difference was often a single document.

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How Lady Bird Deeds Fit Into Broader Estate Planning

Some homeowners already have a living trust, but have never transferred the home into it. Others assume a will alone avoids probate. It does not.

In certain situations, a Lady Bird Deed can:

• Align the home with an existing trust

• Provide probate avoidance without the cost of a full trust

• Help address Medicaid estate recovery concerns

Michigan is one of only a few states that recognize Lady Bird Deeds, making this tool especially relevant for homeowners here.

Always consult a Michigan estate planning or Medicaid planning attorney to determine whether this is appropriate for your specific situation.

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Common Questions I Hear

Does this affect my ability to sell my home?

No. You retain full ownership and can sell, refinance, or change your plans at any time during your lifetime.

Does this impact property taxes?

Creating the deed generally does not trigger uncapping when recorded, but tax implications at transfer should be reviewed with a knowledgeable attorney and CPA.

Is this better than adding my child to the deed?

Adding a child as a co-owner can create significant unintended consequences, such as creditor exposure, divorce risk, gift tax implications, and loss of certain protections. A Lady Bird Deed may avoid those risks while still allowing transfer at death.

Is this the same as a will

No. A will must go through probate. A properly prepared Lady Bird Deed transfers the property outside of probate.

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A Note to Adult Children

If you are helping aging parents, this is an important conversation.

Ask:

• How is the home titled

• Is the house included in the trust

• Where are the estate documents kept

• Has anything changed since the documents were created

Many families do not encounter difficulties due to neglect. They run into it because no one explained their options.

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Why I Talk About This as a Real Estate Professional

I am not an attorney. I do not draft these documents.

But I specialize in guiding families through transitions involving homes. I have helped families sell properties during probate. I have helped families who planned avoid that process entirely.

When you work in this business long enough, you see patterns.

Planning does not remove grief.
But it removes unnecessary complications.

If you ever have questions about how a home would be handled in your specific situation, I am always available as a sounding board. If you need referrals to trusted estate planning attorneys in our area, I am happy to share those as well.

There is no obligation—just a conversation.

Jeff Duneske
Northville Michigan
248 939 9393
Jeff@Duneske.com
Duneske.com

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Disclaimer: This article is for educational purposes only and does not constitute legal or financial advice. Always consult a licensed attorney regarding your personal estate planning needs.