A Lady Bird Deed in Michigan is a simple but powerful estate planning tool.
It allows you to transfer real estate to loved ones automatically upon your death—without the delay and cost of probate. Better still, you retain complete control of the property during your lifetime.
Let’s break down how a Lady Bird Deed works, when to use one, and why it could be the right fit for your estate plan.
What Is a Lady Bird Deed?
A Lady Bird Deed, also known as an enhanced life estate deed, is a type of property deed used to:
- Transfer real estate to beneficiaries outside of probate
- Allow the owner to keep full control of the property during life
- Automatically pass title to named beneficiaries upon death
This type of deed is recognized and valid in Michigan, and is especially popular for individuals who want a low-cost, no-fuss estate plan.
Key Features of a Lady Bird Deed in Michigan
Here’s what makes a Lady Bird Deed unique:
1. You Keep Full Ownership During Your Life
With a Lady Bird Deed, you can:
- Live in the home as long as you want
- Sell it, rent it, or mortgage it
- Change or remove the beneficiaries at any time
You retain full ownership rights. You’re not giving the home away while you’re alive.
2. Your Beneficiaries Automatically Inherit the Property
When you pass away, the property transfers instantly to the people named in the deed.
- No need to include the property in your will
- No court process or probate costs
- The transfer happens automatically and quickly
This is what makes Lady Bird Deeds such a smart probate-avoidance tool.
3. It Helps Preserve Medicaid Eligibility
Lady Bird Deeds can be helpful if you ever need long-term care.
Because you retain ownership, the property usually doesn’t count as a divestment under Medicaid rules in Michigan.
- No five-year lookback applies
- The home remains exempt during life
- Medicaid cannot force its sale
If you qualify for Medicaid, this may help your heirs avoid recovery claims against the property.
4. You Maintain Control, Not Just a Life Estate
A traditional life estate deed limits your ability to make changes once it’s signed.
A Lady Bird Deed is different.
- You can revoke it anytime
- You can change the beneficiaries
- You can refinance or sell the property
That flexibility makes it ideal for clients who want to keep their options open.
Who Should Consider a Lady Bird Deed in Michigan?
A Lady Bird Deed is ideal for:
- Homeowners with modest estates who want to avoid probate
- Parents who want to pass a home to children quickly
- Seniors planning for Medicaid eligibility
- Anyone seeking a low-cost alternative to a living trust
However, it’s not always the best choice for everyone. Your full financial and family situation should guide the decision.
Benefits of a Lady Bird Deed
Let’s summarize the major advantages:
- Avoids probate for your home
- Retains your control during life
- Transfers property automatically at death
- Reduces legal and court costs
- Preserves Medicaid planning options
- Revocable at any time
In short, it’s a powerful tool for protecting your home and your heirs—while keeping your estate plan simple.
Things to Consider Before Creating a Lady Bird Deed
While Lady Bird Deeds offer many benefits, they do have a few considerations:
- May not work well for properties with a mortgage
- Could create issues if multiple heirs disagree
- Doesn’t cover non-real estate assets
- Not ideal for high-value estates that require tax planning
- Beneficiaries must be clearly named and updated as needed
It’s also important that the deed is drafted and recorded properly under Michigan law. A mistake in the document could invalidate it.
Should You Still Create a Will or Trust?
Yes. A Lady Bird Deed handles only one asset: your real estate.
For everything else—bank accounts, vehicles, personal belongings—you’ll still need a comprehensive estate plan, which may include:
- A simple will
- Powers of attorney
- A living will or healthcare directive
- Possibly a trust for more complex estates
Think of the Lady Bird Deed as one important piece of the full plan.
Work With a Michigan Real Estate Attorney
A Lady Bird Deed is a legal document and must follow specific recording rules in Michigan.
Noble Path Legal PLLC helps clients across Metro Detroit:
- Determine if a Lady Bird Deed is right for them
- Draft accurate, enforceable deed language
- File the deed properly with the local register of deeds
- Coordinate the deed with your full estate plan
Don’t trust internet forms or DIY templates. One wrong word can delay or invalidate your transfer.
Ready to Protect Your Home?
Our Michigan real estate attorney can help you use a Lady Bird Deed to safeguard your home and simplify your legacy.
Click the button below to schedule a consultation and get the peace of mind you deserve.