![]() We have years of experience representing clients through various estate planning matters including lady bird deeds. The law firm of Sean J Nichols, PLLC is dedicated to helping families across Michigan plan a comfortable future for themselves and loved ones. He started his legal practice back in 2011 to help the underserved population of elderly and disabled individuals. Sean Nichols is an attorney who specializes in estate planning. You can see an example of this document below. The Michigan Lady Bird Deed is a small estate planning document, typically only a few pages or less in length. The goal is to protect your assets and provide for your heirs as efficiently as possible. ![]() Finally, if a family member is on Medicaid, an inheritance may affect benefits.Īll of these factors should be discussed with an experienced attorney that specializes in estate planning. If someone in your family has substance abuse problems, mental health issues, physical limitations, or unhealthy personal relationships talk to your attorney regarding the best options. When there are extenuating circumstances within a family an attorney may recommend a trust. For example, there may be significant property involved or complicated problems with one or more heirs. There may be times when a ladybird deed is inadequate for a particular family. An experienced estate planning attorney can advise you about the tax benefits regarding a ladybird deed.Įach estate is unique and requires evaluation. Finally, you can avoid uncapping your taxes with this instrument. Also, the grantor’s gift tax exemption is unaffected until after death. This deed may reduce capital gains tax on the sale of your home. However, BEFORE applying for Medicaid a person may work with an attorney and set up a ladybird deed to protect their home from the State of Michigan.Ī ladybird deed provides numerous tax benefits to grantor and heirs. Previous to 2007, a person’s home was passed to heirs…not the State of Michigan. So, if a person qualifies for Medicaid and receives benefits the State will try to recover those benefits after the person passes from the sale of their home. Under this new law the State of Michigan can recoup monies spent on Medicaid from the sale of someone’s home after death. ![]() On Septemthe State of Michigan passed the Estate Recovery Law. So, a ladybird deed would avoid probate court and is a less expensive method of passing on property.Ī Lady Bird Deed may protect your home from Medicaid Recovery in Michigan. This makes settling an estate extremely stressful and expensive for heirs. Many times families are dealing with the grief of losing a loved one and find out there was no will, trust, or other estate planning documents. Going through this court is expensive and time consuming. These courts deal with someone’s assets and belongings after they pass away. (See article here for more information on Michigan Divorce Laws.) Since, we can never predict the future behavior of others, it’s important to protect your assets. A ladybird deed gives you full control over your property while alive. Creditors, ex- spouses, or others may lay claim to your estate.Īnother important factor to consider is your ability to sell your property, or refinance it at any time. In these situations, your property may be at risk. Let’s imagine one of the heirs gets in financial difficulties with creditors or is going through a messy divorce. Unfortunately, this method is a potential financial disaster. ![]() They believe this is one way for the kids to inherit property when parents pass away. For example, some folks think adding their adult children to their property deeds is a good idea. This is extremely important for your protection. Some of these reasons are listed below:Ī Lady Bird Deed allows you to maintain control of your property while alive. Numerous reasons exist to include a ladybird deed as part of your estate plan. An experienced estate planning attorney can advise you if this type of deed is appropriate for your needs. This estate planning instrument allows a property owner to maintain control over their property while alive and transfer it to heirs upon their death.Ī ladybird deed falls under the Michigan Land Title Standards (6th) 9.3 which governs this method of property transfer. A Michigan ladybird deed is a type of Quit Claim Deed commonly used in Michigan. ![]()
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