Ladybird Deeds Attorney in Farmington, MI

Ladybird Deed in Farmington & Serving Clients in Farmington, 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

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.