When developing an estate plan, many individuals and families focus on making the transition of assets as simple as possible for their beneficiaries. Even in the best circumstances, settling an estate through the formal probate process can be difficult in many ways. Often, people use trusts to help their loved ones avoid the time, cost and hassle associated with probate. 

In West Virginia and a few other states, another option exists for homeowners who want to shift ownership of their residence directly to family members or other beneficiaries. A ”Lady Bird” Deed, also known as an Enhanced Life Estate Deed, offers a streamlined method for real property transfer. By creating one of these instruments, title shifts to the designated recipient upon your death. 

Unlike standard Life Estate Deeds, which can restrict a homeowner's control over their property, a Lady Bird Deed offers grantors significant flexibility. Homeowners can change or revoke their designation at any time. Whoever is named to assume ownership of the property does not have any legal interest until the homeowner passes away. This means the homeowner is free to sell the parcel or take a mortgage on it without the consent of the beneficiary. 

Many similarities exist between Lady Bird Deeds and Transfer on Death (TOD) Deeds, which are available in more states, including Ohio. However, there are significant differences as well. While both types of instruments allow recipients to receive real estate outside of probate, Lady Bird Deeds only name a single beneficiary, which can require additional work if that recipient predeceases the grantor. On the other hand, TOD Deeds can name contingent beneficiaries. 

Some families use Lady Bird Deeds to assist in Medicaid planning, as the transfer might not count as a gift for eligibility purposes, meaning that the property cannot be used to repay Medicaid posthumously for expenses incurred by the deceased homeowner. Whether a Lady Bird Deed, a TOD Deed or some other option best suits your estate planning objectives is something you should discuss with a qualified attorney. 

At Pullin, Fowler, Flanagan, Brown & Poe, we advise clients throughout West Virginia, Kentucky and Ohio on a wide range of concerns relating to the preservation and transfer of assets. For a consultation regarding your specific needs, please call us at 304-344-0100 or contact us online.