A Ladybird Deed is a legal document which allows you to transfer property to your heirs while retaining the life estate and the right to sell the property in your lifetime. You, not your beneficiaries, own the property and there is no need to notify the beneficiaries if you decide to sell it. It is not until your death that your heirs, or beneficiaries named on the deed, will be able to take the property.
The benefits of this is that the property is yours to do with as you wish. You do not need the beneficiaries permission to sell the property during your lifetime. You do not need to pay gift taxes, for transferring the remainder interest, because you have the right to cancel the remainder interest conveyed to the beneficiary.
Other benefits are avoiding probate, protection from creditors, no capital gains tax and flexible rights. The Ladybird Deed helps in conveying the title without any probate at the time of your death. The property is protected from your beneficiaries’ creditors during your lifetime. Your beneficiaries have no interest in the property while you are alive and so their creditors cannot place a lien on it. The beneficiaries inherit the property at the value of the property on the day when you pass away. If the beneficiaries sell the house, there will be no capital gains tax. Lastly, you have control over your property while you are alive. You can sell or transfer the property as a gift. You can take out a mortgage on the property.
Is a Ladybird Deed right for you? Call us. We can help!
Todd Courser 810-245-0813