Avoiding Medicaid Estate Recovery Archives - Lady Bird Deed - Your Estate Planning Information Source

May 20, 2025May 20, 2025Estate Planning

Do Lady Bird Deeds protect against Medicaid estate recovery?

While Lady Bird Deeds—including Transfer-on-Death Deeds—are popular tools for avoiding probate and simplifying inheritance, it’s a common misconception that they automatically shield property from Medicaid estate recovery. In reality, Lady Bird Deeds do not guarantee protection against Medicaid claims after your death. Read on for more details.

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May 20, 2025May 20, 2025Estate Planning, Property Deeds

What are the disadvantages of Lady Bird Deeds?

While Lady Bird Deeds offer many benefits—like avoiding probate and keeping control of your property during your lifetime—they may not be the right choice for everyone. Depending on your goals, a will or other estate planning tools might be more suitable.

Here are some potential disadvantages and dangers of using a Lady Bird Deed:

1. Limited to Real Estate

A Lady Bird Deed only applies to real property—like your home or land. If you want to transfer other assets (bank accounts, personal belongings, vehicles, etc.), you’ll still need a will or trust. (Albeit, in some states you may be able to transfer vehicles through a Lady Bird Trust as well.)

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Lady Bird Deed Protect Home from Medicaid

May 14, 2025May 14, 2025Estate Planning, Property Deeds

What are Lady Bird Deeds? 🐦

A Lady Bird Deed—also known as an “enhanced life estate deed”—is a simple yet powerful legal tool that lets you keep full control of your property during your lifetime while deciding who will automatically inherit it after you pass away.

Here’s how it works: you stay in complete control. You can live in the home, sell it, refinance it, or even change your mind and revoke the deed entirely. Then, when you die, the property passes directly to your chosen beneficiary—without going through probate or needing a will.

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May 1, 2025May 15, 2025Estate Planning, Property Deeds

What are the benefits of Lady Bird Deeds?

Lady Bird Deeds vs. Wills: Key Benefits of Using a Lady Bird Deed

When it comes to passing on real estate, Lady Bird Deeds offer several distinct advantages over traditional wills. Here’s a breakdown of the key benefits:

✅ Avoids Probate

Lady Bird Deed: Transfers the property automatically to the beneficiary upon death, bypassing probate entirely.
Will: Property must go through the probate process, which can be slow, costly, and public.

✅ Retains Full Control During Lifetime

With a Lady Bird Deed, you can still sell, lease, refinance, or change the deed anytime. You’re not locked in.
A will doesn’t impact your ownership rights either—but it doesn’t transfer anything until after your death and only through probate.

Transfer on Death Deeds are Easer. — Property is transferred automatically with no muss, no fuss.

✅ Faster & Easier Transfer

The property passes immediately and directly to your named beneficiary when you die.
A will may take months (or longer) to settle through court, delaying access to the property.

✅ Possible Medicaid Benefits

In some states, Lady Bird Deeds can help protect property from Medicaid estate recovery, potentially preserving it for your heirs.
A will does not shield property from Medicaid recovery claims after your death.

✅ Lower Costs

Creating a Lady Bird Deed typically costs less than going through probate.
Probate can involve attorney fees, court costs, and delays.

Lady Bird Deed Property Transfers Are Private

✅ Private Transfer

A Lady Bird Deed keeps the transfer private—it’s not a matter of public record at the time of death.
Wills become public documents once filed with probate court.

⚠️ Important Caveat

While Lady Bird Deeds are great for real estate, they only apply to the specific property named in the deed. Wills are broader and can cover all kinds of assets, not just real estate. Also, Lady Bird Deeds are not available in every state, so check your state laws or consult an attorney.

Summary Chart

Feature	Lady Bird Deed	Will
Avoids Probate	✅ Yes	❌ No
Immediate Transfer on Death	✅ Yes	❌ No (must go through court)
Retains Control While Alive	✅ Yes	✅ Yes
Medicaid Recovery Protection	✅ Possible (varies by state)	❌ No
Covers Multiple Assets	❌ No (real estate only)	✅ Yes
Cost & Simplicity	✅ Lower, simpler	❌ Can be complex & costly

In short, if you’re looking to transfer real estate to someone after your death without giving up control during your life, a Lady Bird Deed can be a faster, simpler, and more private alternative to a will.