Lady Bird Deed
Also known as an Enhanced Life Estate, this deed allows for protection from Michigan’s Medicaid Recovery or Estate Recovery Laws. These laws allow the State of Michigan to submit a claim in the estate of an individual who received Medicaid benefits. One technique to avoid paying the State of Michigan’s claim is to ensure that there is no probate estate. Properly used, a lady bird deed can play a crucial role in ensuring an estate is not opened.
The Lady Bird deed works similarly to a typical life estate deed, where the owner of the property retains the right to use the property for the rest of his or her or their lives. However, where the Lady Bird deed differs is that the owner also retains the right to convey or mortgage the property.