How does lady bird deed differ from revocable living trust?

Welcome Vallygirl,

A ladybird deed is a document which helps to transfer your property to your heirs or any one else but give you the chance to have a life estate on it. However, unlike life estate in other deed, you will retain the liability to sell your property. Know more about ladybird deed.

A revocable living trust is a written agreement by which someone can manage a property for the benefit of others who are called the beneficiaries. The term revocable implies that the person who has created the trust can change or end it any time as long as he is mentally fit.

Hi Vallygirl,

If there is homestead protection on your property which is transferred into a revocable living trust, it will affect your Medicaid eligibility for long term care. But a ladybird deed can still be used and you can retain your eligibility for Medicaid.

Now, if you transfer your house into revocable trust:

Pros: You have the full control on your property during your lifetime and can pass it on to your children after your death.
Cons: You may find it difficult to refinance your home.

On the other hand, if there is a ladybird deed:

Pros: The property will automatically pass on to your children after your death.
Cons: It may be difficult to sell or refinance because some lenders and title companies do not find this set up easy to deal with.

I hope this is now clear to you.

Thanks.

what is the benefit of a trust as opposed to a lady bird deed

Hi maxine,

As far as I know, if you transfer a property to a revocable trust, then you will have the total control on your property during your lifetime. Later on, after your death, the property can pass on to your children.

can dpoa use lady bird to transfer property to himself ?

Hi sam,

As far as I know, with a durable power of attorney, a person can transfer property into trust. As far as transferring property to oneself with the help of a ladybird deed is concerned, you need to consult an attorney and take his opinion in this regard.

Thanks

Moms estate or property in san antonio tx. need to know what would be the best way to protect my moms estate in the future to be passed on to her children or if she may need to quilify for long term care

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1. is an atty required to set this up?
2. what is the cost to do this?
3. does the doc need to be recorded when it is drawn up?
thnx

Hi Brevard,

I guess you are speaking about the ladybird deed. It is always better to take the help of an attorney in order to draft the ladybird deed. The attorney fees will vary from person to person. After the deed has been drafted filled out and signed, you will have to record the deed at the county recorder's office.

Does the Ladybird Deed only apply to a house or would it also apply to a plot of land with no house? BJF

Hi BJF,

As far as I know, a ladybird deed can be used to transfer a plot of land from one person to another.

Thanks

Are either of these options good for the state of Kentucky? Would either one protect my property in case I need long term care in the future?

Thank you!

Hi BFB,

As far as I know, a ladybird deed is not valid in the state of Kentucky. Thus, you won't be able to take advantage of the deed in transferring your property.

Thanks

Is there a problem getting a loan on your property when you have a Lady bird deed?