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Ladybird Deeds

Ladybird Deed in Northville & Serving Clients in Northville TWP, MI

Ladybird Deed- What Is It?

  • Creates a life estate for the Grantor

  • A grantor can sell, lease, mortgage, etc.

  • A grantor can revoke the deed

  • On death, the property is conveyed to named Grantees

Ladybird Deed-What Are the Benefits?

  • Avoids Probate

  • Avoids Medicaid recovery

  • The easiest and cheapest way to convey property at death

  • Part of the least expensive estate plan possible

Is This The Right Option for You?

I HAVE ANSWERS

Ladybird Deed Versus Quit Claim Deed Naming Joint Owners

  • Joint owners must all sign the deed to sell the property. Any one-joint owner can refuse to sign and stop a sale.

  • If a joint owner files bankruptcy, the bankruptcy court can file a lien on the property

  • If joint owner files for divorce, the property is part of the property settlement

  • If a joint owner is sued and loses, the judgment creditor can attach a lien to the property

Ladybird Deed-What Is the Downside?

  • One major bank in the area will not refinance a mortgage if there is a ladybird deed in place. They require a deed back to grantors, then sign the refinance papers, then do a new ladybird deed.

  • Beneficiaries on the deed must agree when it is time to sell the house.