If you own a home in Michigan and want to make sure it passes easily to your heirs — without court costs, delays, or conflict — a Lady Bird Deed may be the tool you’re looking for. This often-overlooked estate planning option offers a simple and effective way to protect your home, maintain control during your lifetime, and avoid probate when you pass away.
What Is a Lady Bird Deed?
A Lady Bird Deed — also known as an enhanced life estate deed — allows you to transfer your home to a beneficiary upon your death, without the need for probate. You keep full control of the property while you’re alive, including the right to sell or refinance it. Only after you pass does the property transfer to your named beneficiary.
Why Is It Called a Lady Bird Deed?
The term “Lady Bird Deed” is believed to have originated from a law professor who used the name of former First Lady Lady Bird Johnson in an example. While it has no legal connection to her, the nickname stuck and is now commonly used — especially in states like Michigan where it’s legally recognized.
How Does It Work in Michigan?
In Michigan, Lady Bird Deeds are a popular tool because:
- They avoid probate court
- They allow you to retain complete control during your lifetime
- They don’t count as a completed gift for Medicaid purposes
- They protect the home from Medicaid estate recovery after death
To be valid, the deed must be properly drafted, executed, and recorded with the county.
Pros and Cons of a Lady Bird Deed
Pros:
- Avoids probate
- Maintains full control during lifetime
- May help qualify for Medicaid
- Low cost compared to a trust
Cons:
- Only works for real estate
- Doesn’t provide broader estate planning protections (like for bank accounts or blended families)
- May cause issues if the beneficiary dies before you
When Is a Lady Bird Deed a Smart Option?
This type of enhanced life estate deed may be a great choice if:
- You own your home and want it to go to a specific person without probate
- You’re planning for Medicaid eligibility
- You want a simple, low-cost alternative to a trust for real estate
However, it’s not a one-size-fits-all solution. If your estate is more complex or involves multiple heirs, blended families, or business interests, a revocable living trust may be a better fit.
For many Michigan homeowners, a Lady Bird Deed can be a smart, strategic move to simplify their estate plan — but it should always be evaluated as part of a comprehensive legal strategy. This type of deed is especially helpful for seniors who want to qualify for Medicaid without losing their home.
Schedule a free consultation today to learn if this type of deed is right for you and your family.
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