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 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.