My City May 2023

ABOUT THE AUTHORS

L ady Bird Deeds, also created and used in the state of Texas by attorneys in the late 1980s. They were named after Claudia Alta “Lady Bird” John son, the wife of former U.S. President Lyndon B. Johnson, who passed away in 2007. This type of real estate deed allows property owners to transfer property to a named beneficiary at the owner’s death while retaining the right to use and enjoy the property during their lifetime. Unlike tradi tional life estate deeds, Lady Bird Deeds provide additional benefits to the property owner, including the ability to sell, mortgage or even revoke the deed during their lifetime. The Lady Bird Deed has become popular because it pro vides a way for property owners to avoid probate and minimize the risk of losing their property to Medicaid estate recovery. It is also a useful estate planning tool for those who want to pass on their property to a loved one while retaining the right to use and control it during their lifetime. A relatively simple doc ument, the Lady Bird Deed is executed by the property owner and recorded in the known as Enhanced Life Estate Deeds, were first

county where the property is located. The deed names the property owner as the “grantor” and the named beneficiary as the “grantee.” It also includes a legal description of the property and states that the grantor retains a “life estate” in the property, which means they have the right to use and control the property during their lifetime. The Lady Bird Deed differs from a traditional life estate deed in that it allows the grantor to retain certain powers over the property during their lifetime. For example, the grantor can sell or mortgage the property without the con sent of the named beneficiary. The grantor can also revoke the deed at any time during their lifetime, which means that they can change their mind about who will receive the property at their death. One of the primary advantages of the Lady Bird Deed is that it allows property owners to avoid probate, which is the legal process of settling an estate after someone dies. Probate can be time-consum ing and expensive, and it can also result in the loss of some or all the property to Medicaid estate recovery. By using a Lady Bird Deed, property owners

can ensure that their property passes directly to their named beneficiary without the need for probate. Another advantage of the Lady Bird Deed is that it can help to protect the property from Medicaid estate recovery. Medicaid is a government program that provides health care benefits to low-income individuals and families. When a person receives Medicaid benefits, the government may seek to recover the cost of those benefits from their estate after they die. This can help to minimize the risk of losing the property to Medicaid estate recovery. In summary, a Lady Bird Deed is an extremely useful and simple tool to help protect your estate. It is important to understand that laws change all the time. Although a Lady Bird Deed is a valid document according to the laws in the State of Michigan, the law may change deeming these types of deed invalid. It is important to consult with a licensed attor ney in your jurisdiction who specializes in estate planning to determine whether a Lady Bird Deed is the right estate planning tool for your individ ual needs. ◆

Amir E. Abu-Aita practices Elder Law, Medicaid Planning, VA Planning, Probate, Estate Planning, Business Transactions, and Assisted Living Law. He is a member of the Genesee County Bar Association as well as the Elder Law and Probate Sections of the State Bar of Michigan. In addition, he serves as a member of the Genesee County Commission on Aging, Adult Foster Care Providers, and Former President of Elder Abuse Alliance (Formally known as the Elder Abuse Task Force). He has been selected to the Michigan Super Lawyers® 2021-22 Rising Stars list. Each year, no more than 2.5 percent of the lawyers in the state are selected by the research team at Super Law yers® to receive this honor. He has also been selected for the 2022 Best Lawyers: Ones to Watch in America™ for his high-caliber work in Elder Law and Trusts and Estates.

Alexandra Nassar specializes in Wills, Trusts & Estates, and Probate Law. As a member of the Greater Flint Com munity her whole life, she is dedicated to serving the community. Alexandra serves on the boards of the American Inns of Court, McLaren Regional Medical Center Bioethics Committee, Genesee County Bar Association Membership Committee, and the Arab American Heritage Council. She was named a Rising Star by Michigan Super Lawyers® in 2016 and 2017 and is an Institute of Continuing Education (ICLE) Contributor.

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