Many Michigan families want real estate to pass smoothly to loved ones without probate and without losing control during life. We meet clients in Troy, Shelby Township, and across Oakland and Macomb Counties who want to retain ownership, retain the right to sell, and avoid the court process at death. A Lady Bird deed, also known as an enhanced life estate deed, can achieve these goals when used correctly. It allows the owner to keep full control of the property during life, name a beneficiary for death, and avoid formal probate administration. It also fits well with broader estate planning that may include wills, trusts, or beneficiary designations.

Michigan law does not use the phrase “Lady Bird deed” in a statute. Instead, these deeds arise from Michigan common law, which recognizes a retained life estate with full powers and a transfer-on-death of the remainder interest. Because there is no present transfer, the owner retains control until death. The property then passes automatically to the named beneficiary and typically does not become part of the probate estate under the Estates and Protected Individuals Code. Avoiding probate can save time, cost, and stress for families, as real property can pass by operation of the deed.

Key Legal Features Of A Lady Bird Deed

A Lady Bird deed is different from a traditional life estate. With a traditional life estate deed, the owner gives away a remainder interest during life and limits later control. With a Lady Bird deed, the owner retains broad powers, including the power to:

• Sell the property
• Refinance the property
• Revoke or change the beneficiary.
• Gift the property during life.

The retained control is what gives rise to the term enhanced life estate. Because the remainder beneficiary has no enforceable rights until death, the owner keeps flexibility. Michigan courts recognize this structure as valid when the deed is properly drafted and recorded with the county register of deeds where the property sits.

Probate Avoidance And EPIC Considerations

Probate avoidance is one of the most common reasons families choose Lady Bird deeds. Under MCL 700.3101, probate administration generally applies to property owned solely in the decedent’s name without beneficiary designation. Because Lady Bird property transfers by deed upon death, it usually does not pass through probate. Title passes by operation of law upon the owner’s death, and the beneficiary records an affidavit and a death certificate.

That said, probate avoidance does not make Lady Bird deeds a substitute for a full estate plan. Other assets may still require probate unless properly coordinated, and creditor issues, tax concerns, and blended family situations may require careful planning.

Medicaid And Estate Recovery Considerations

Many Michiganders ask about Lady Bird deeds in connection with long-term care planning. Michigan’s Medicaid estate recovery program is primarily applied to probate estates under MCL 400.112g. Because Lady Bird deeds avoid probate, real estate owned this way often is not included in the probate estate for estate recovery purposes. However, Medicaid rules are complex, change over time, and depend on individual facts. We routinely stress that these deeds are only one tool and must be considered in the broader context of eligibility rules and federal and state policy at the time they are used.

Property Taxes And Uncapping Issues

Property tax “uncapping” in Michigan is governed by MCL 211.27a. A transfer of ownership can cause the taxable value to uncap to the current market value. With a Lady Bird deed, the actual transfer typically occurs at death when the remainder beneficiary receives ownership. Whether uncapping occurs depends on the relationship between the decedent and the beneficiary and the specific exemptions in the statute. For example, transfers to certain family members may be exempt from uncapping, while others are not. We review each case based on the property classification, ownership status, and beneficiary relationship to avoid mistakes.

Pros And Cons To Consider Before Using A Lady Bird Deed

Lady Bird deeds offer powerful benefits:

• Probate avoidance.
• Owner control during life.
• Automatic transfer at death.
• Relatively simple preparation compared to trust-based plans.

However, there are also limitations:

• Potential uncapping issues.
• Coordination needed with mortgages or title insurance.
• Not always ideal for complex blended families.
• Not always appropriate when multiple beneficiaries disagree.

We help clients evaluate when a Lady Bird deed fits, when a trust or will is better, and when combined tools make the most sense.

How Lady Bird Deeds Compare With Trusts And Transfer-On-Death Structures

Michigan law allows multiple probate-avoidance tools, including revocable living trusts and transfer-on-death designations for certain assets. Lady Bird deeds work alongside:

• Revocable Living Trusts
• Wills
• Joint Ownership Arrangements
• Beneficiary Designations on Financial Accounts

A deed alone will not address guardianship, health care decisions, or full wealth transfer. Estate plans work best when documents are coordinated to avoid conflict or unintended outcomes.

Frequently Asked Questions About Lady Bird Deeds In Michigan

What Is A Lady Bird Deed In Michigan?

A Lady Bird deed is an enhanced life estate deed that allows an owner to keep full rights in the property during life and name a beneficiary who receives the property at death. The owner keeps the right to sell, mortgage, or revoke the deed. Because the transfer occurs at death, the property normally avoids probate under Michigan’s Estates and Protected Individuals Code. This deed is recognized under Michigan common law, even though the term itself does not appear in a statute.

Does A Lady Bird Deed Avoid Probate In Michigan?

In most cases, yes. Property titled under a Lady Bird deed passes directly to the named beneficiary at death, so it does not go through probate administration under EPIC. The beneficiary typically records an affidavit and a death certificate to update the title. Other assets may still require probate, so Lady Bird deeds work best as part of a coordinated estate plan rather than a stand-alone solution.

Can The Owner Still Sell The Home After Signing A Lady Bird Deed?

Yes. The defining feature of a Lady Bird deed is that the owner keeps the right to sell, lease, mortgage, or give away the property during life without consent from the beneficiary. The beneficiary’s interest is not vested and does not control. If the property is sold, the beneficiary’s future interest ends. This flexibility is one reason many Michigan homeowners favor this deed over a traditional life estate.

How Does A Lady Bird Deed Affect Medicaid Estate Recovery?

Medicaid estate recovery in Michigan is generally limited to probate estates. Because property under a Lady Bird deed avoids probate, it is often not included in the estate subject to recovery. Rules change and depend on individual facts, so families considering long-term care planning should review timing, eligibility, and policy updates before relying on a deed alone.

Will Property Taxes Uncap When The Owner Dies?

Uncapping depends on the nature of the transfer and the relationship of the parties. Under MCL 211.27a, many transfers at death cause uncapping, while others qualify for exemptions. A Lady Bird deed causes the actual ownership transfer at death, so local assessors review the transfer at that time. We review each case to determine whether an exemption may apply and what to expect for future tax bills.

Can A Lady Bird Deed Be Changed Or Revoked?

Yes. Because the owner retains enhanced life estate powers, the deed can usually be revoked or replaced with a new deed at any time during life. No beneficiary consent is needed. This is a major difference from a standard life estate deed, which severely limits change once executed. To revoke or amend, a properly drafted and recorded document is required.

Is A Lady Bird Deed Better Than A Living Trust?

Neither tool is always better. A Lady Bird deed works very well for transferring a single piece of real property. A living trust may make more sense when there are multiple properties, complex family relationships, business interests, or long-term management needs. Many clients use both: a trust for broader planning and a Lady Bird deed for a primary residence.

Call To Discuss Michigan Lady Bird Deeds And Probate Avoidance

Families in Troy, Shelby Township, and surrounding Oakland and Macomb County communities often benefit from clear guidance on Lady Bird deeds, probate avoidance, and full estate plans. We help clients understand options, title issues, tax questions, and how deeds fit within their broader goals.

For assistance with Lady Bird deeds and Michigan estate planning, call the Michigan estate planning attorneys at Boroja, Bernier & Associates at 586-991-7611 to schedule a consultation. Our offices are located in Troy, Michigan, and Shelby Township, Michigan, and we proudly serve clients throughout Oakland County and Macomb County. We look forward to helping families protect real estate and transfer it efficiently to the next generation.