What is a Lady Bird Deed in Michigan?
A Lady Bird Deed, also known as an enhanced life estate deed, allows property owners in Michigan to transfer their property to beneficiaries while retaining control during their lifetime. This means the owner can sell, mortgage, or change the property as they wish. Upon the owner's death, the property automatically transfers to the named beneficiaries without going through probate.
Who can use a Lady Bird Deed?
Any property owner in Michigan can use a Lady Bird Deed. This includes individuals who own their home or other real estate. It is particularly useful for those who want to ensure a smooth transfer of property to their heirs while avoiding the lengthy and costly probate process.
What are the benefits of using a Lady Bird Deed?
There are several advantages to using a Lady Bird Deed. First, it allows the property owner to maintain control over the property during their lifetime. Second, it avoids probate, which can save time and money. Additionally, it can help protect the property from creditors and Medicaid claims after the owner's death, depending on specific circumstances.
Are there any drawbacks to a Lady Bird Deed?
While there are many benefits, there are also potential drawbacks. For instance, if the property owner needs to sell the property, they must ensure that all beneficiaries agree to the sale. Additionally, if the owner wishes to change beneficiaries, they must execute a new deed. It’s important to consider these factors and consult with a legal professional to ensure it fits your needs.
How do I create a Lady Bird Deed?
To create a Lady Bird Deed, you need to prepare the deed document, which includes the names of the current owner(s) and the beneficiaries. It must be signed and notarized. After that, you should file the deed with the local county register of deeds. It’s advisable to seek legal assistance to ensure that the deed is properly executed and meets all legal requirements.
Can I revoke a Lady Bird Deed?
Yes, a Lady Bird Deed can be revoked or changed at any time during the property owner's lifetime. To do this, the owner must create a new deed that explicitly revokes the previous one. This flexibility is one of the key benefits of using a Lady Bird Deed, allowing property owners to adapt their estate plans as circumstances change.
Do I need an attorney to create a Lady Bird Deed?
While it is not legally required to have an attorney to create a Lady Bird Deed, it is highly recommended. An attorney can help ensure that the deed is drafted correctly and complies with Michigan law. They can also provide guidance on how the deed fits into your overall estate plan, which can be invaluable for your peace of mind.