Texas Lady Bird Deed Attorney
Avoid the probate process with enhanced life estate deed planning
You may not be ready to transfer control of your assets quite yet—but for your family, going through probate court while also grieving the loss of a loved one is an overwhelming prospect. Fortunately, there’s an option that can benefit both parties, allowing you to maintain control of your property during life while simultaneously easing the burden for beneficiaries after you pass.
With a Lady Bird deed, you can retain control of your properties while also helping your beneficiaries avoid probate court.
At the law firm of Shann M. Chaudry Esq., Attorney at Law PLLC, we care deeply about protecting the things that matter the most—including your loved ones’ peace of mind. Our estate planning attorneys can help you retain property rights while providing for a smooth transfer of property after your passing.
If you need legal support for your enhanced life estate deed, contact us. Our experienced Texas attorneys can guide you through the estate planning process with care and compassion.
What is a Lady Bird Deed?
A Lady Bird deed, or enhanced life estate deed, allows the person who creates the deed—the grantor—to transfer ownership of real property to someone else—the grantee or remainderman (also known as a life tenant).
Once the Lady Bird deed is signed, the remainderman is the owner of the property. However, the grantor retains rights to the property, including:
- Living on the property
- Mortgaging the property
- Leasing the property
- Selling the property
A Lady Bird deed, or enhanced life estate deed, allows the person who creates the deed—the grantor—to transfer ownership of real property to someone else—the grantee or remainderman (also known as a life tenant).
Once the Lady Bird deed is signed, the remainderman is the owner of the property. However, the grantor retains rights to the property, including:
- Living on the property
- Mortgaging the property
- Leasing the property
- Selling the property
The grantor can do all of these things without consent from the remainderman. They also have the right to revoke or amend the Lady Bird deed at any time, should they desire to do so.
The term “Lady Bird deed” came about when former president Lyndon B. Johnson transferred property to his wife, Claudia Alta “Lady Bird” Johnson. While not approved in some states, this type of deed is legally recognized in Texas.
What are the Benefits of a Lady Bird Deed?
A Lady Bird deed offers several advantages to the grantor and grantee alike:
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MEDICAID PLANNING Because the owner retains the rights to the property, a Lady Bird deed shouldn’t impact their eligibility for Medicaid benefits. |
PROPERTY USE AND PROFIT The grantor can continue to use and profit from the property for the duration of their life. |
NO FEDERAL GIFT TAX Because no present value is transferred to the grantee upon the creation of the deed, there is no federal gift tax. |
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MINIMIZED CAPITAL GAINS TAX CONSEQUENCES At the time of the grantor’s passing, the property will receive a stepped-up basis to its market value, minimizing capital gains tax consequences if the grantee chooses to sell the property. |
RETAINED HOMESTEAD RIGHTS If the grantor continues to use the property as a homestead, they retain Texas homestead rights and other exemptions. |
AUTOMATIC TRANSFER TO THE BENEFICIARY Because the property is not included in the grantor’s estate, it will automatically transfer to the grantee upon the grantor’s death, without the need for probate. |
With a traditional life estate, the grantor loses the right to sell or mortgage the property—but with a Lady Bird deed, the grantor retains that right.
How Does a Lady Bird Deed Work in Texas?
Before signing the Texas Lady Bird deed, the owner has full rights to their property. This changes as soon as the deed is signed, at which point ownership is divided into two categories:
- Life estate, which lasts for the duration of the current owner’s life, and
- Remainder interest, which allows the beneficiary to take possession of the property after the current owner has passed
Even after the deed is signed, the grantor maintains the right to change their mind about the transfer—without involving the remainder beneficiary.
Why Use an Elder Law Attorney for Lady Bird Deeds?
Schedule a Consultation With a Texas Elder Law Attorney Today
Looking for estate planning assistance for yourself or your loved one? Our skilled, knowledgeable Texas elder law attorneys can guide you through the process, ensuring that your wishes are respected and that the burden of probate is minimized for your loved ones.
We recognize that everyone’s situation is different, so we’ll work with you to come up with a plan tailored to your specific goals, needs, and preferences.
We’re here to help. Contact us today to learn more and schedule a consultation.