What a Lady Bird deed is in Texas and whether it can avoid probate |
A neighborhood in suburban Houston is seen in this file photo. Lady Bird deeds offer Texans a way to transfer a home without probate while protecting it from Medicaid estate recovery.
Q: Can you explain a “Lady Bird” deed? Can title to a house transfer under such a deed without going through probate?
A: Lady Bird deeds (also called "enhanced life estate deeds") are often used when a person is trying to qualify for Medicaid, with the goal of having the home pass to the person's children or other beneficiaries without being sold to reimburse the state of Texas for the money spent on the person's care.
A Lady Bird deed contains wording that gives away the home to persons who are named as beneficiaries in the deed, but the person signing the deed retains the right to live in the home, rent out the home, give it away, and sell it and keep the proceeds. If the person dies without changing the deed, and without giving........