This form is a Quitclaim Deed with a retained Enhanced Life Estate where the Grantor is an individual and the Grantees are two individuals or husband and wife. It is also known as a "Lady Bird" Deed. Grantor conveys the property to Grantees subject to an enhanced retained life estate. The Grantor retains the right to sell, encumber, mortgage or otherwise impair the interest Grantees might receive in the future, without joinder or notice to Grantees, with the exception of the right to transfer the property by will. This deed complies with all state statutory laws.
Ann Arbor Michigan Enhanced Life Estate or Lady Bird Deed — Individual to Two Individuals / Husband and Wife: A Comprehensive Overview In Ann Arbor, Michigan, an Enhanced Life Estate or Lady Bird Deed is a legal instrument that allows property owners to transfer their property to two individuals, typically a husband and wife, while retaining control and the right to live in the property until their passing. This versatile estate planning tool offers various benefits, including probate avoidance, Medicaid planning, and seamless property transfer. The Ann Arbor Michigan Enhanced Life Estate or Lady Bird Deed provides several key advantages, including: 1. Probate Avoidance: One of the significant benefits of this deed is its ability to bypass probate. Upon the property owner's passing, the property automatically transfers to the named individuals, without the need for court intervention or probate proceedings. This saves time, money, and avoids potential conflicts within the family. 2. Continued Control and Use: With this deed, the original property owner maintains complete control of the property during their lifetime. They retain the right to live in, sell, mortgage, or lease the property without the consent of the individuals mentioned in the deed. 3. Medicaid Planning: By transferring the property with an Enhanced Life Estate or Lady Bird Deed, the original property owner may protect the property from being considered as an asset for Medicaid eligibility calculations. This can be crucial for individuals who may require long-term care in the future. 4. Tax Advantages: Unlike traditional deeds, this type of deed does not trigger a change in property tax assessments or federal income tax consequences. The individuals mentioned in the deed will receive a step-up in tax basis after the property owner's passing, potentially resulting in substantial tax savings upon the property's future sale. In Ann Arbor, Michigan, there are two main variations of the Enhanced Life Estate or Lady Bird Deed, tailored to individual or joint ownership: 1. Enhanced Life Estate Deed — Individual to Two Individuals / Husband and Wife: This type of deed allows an individual property owner to transfer their property to a specific husband and wife, granting them ownership rights upon the original owner's death while retaining the right to live in the property during their lifetime. 2. Joint Enhanced Life Estate Deed — Husband and Wife to Themselves: This variation enables a husband and wife who jointly own the property to transfer their property to themselves with enhanced life estate rights. This means that both individuals continue to possess full ownership and control of the property throughout their lifetimes but allows for an automatic transfer to the surviving spouse upon one partner's passing. In conclusion, Ann Arbor, Michigan's Enhanced Life Estate or Lady Bird Deed is a highly advantageous estate planning tool for property owners. Whether opting for individual to husband and wife or joint husband and wife arrangements, this deed provides control, probate avoidance, Medicaid planning, and potential tax benefits. It is essential to consult with a knowledgeable attorney specializing in real estate and estate planning to understand the legal implications and ensure a seamless transfer of the property.Ann Arbor Michigan Enhanced Life Estate or Lady Bird Deed — Individual to Two Individuals / Husband and Wife: A Comprehensive Overview In Ann Arbor, Michigan, an Enhanced Life Estate or Lady Bird Deed is a legal instrument that allows property owners to transfer their property to two individuals, typically a husband and wife, while retaining control and the right to live in the property until their passing. This versatile estate planning tool offers various benefits, including probate avoidance, Medicaid planning, and seamless property transfer. The Ann Arbor Michigan Enhanced Life Estate or Lady Bird Deed provides several key advantages, including: 1. Probate Avoidance: One of the significant benefits of this deed is its ability to bypass probate. Upon the property owner's passing, the property automatically transfers to the named individuals, without the need for court intervention or probate proceedings. This saves time, money, and avoids potential conflicts within the family. 2. Continued Control and Use: With this deed, the original property owner maintains complete control of the property during their lifetime. They retain the right to live in, sell, mortgage, or lease the property without the consent of the individuals mentioned in the deed. 3. Medicaid Planning: By transferring the property with an Enhanced Life Estate or Lady Bird Deed, the original property owner may protect the property from being considered as an asset for Medicaid eligibility calculations. This can be crucial for individuals who may require long-term care in the future. 4. Tax Advantages: Unlike traditional deeds, this type of deed does not trigger a change in property tax assessments or federal income tax consequences. The individuals mentioned in the deed will receive a step-up in tax basis after the property owner's passing, potentially resulting in substantial tax savings upon the property's future sale. In Ann Arbor, Michigan, there are two main variations of the Enhanced Life Estate or Lady Bird Deed, tailored to individual or joint ownership: 1. Enhanced Life Estate Deed — Individual to Two Individuals / Husband and Wife: This type of deed allows an individual property owner to transfer their property to a specific husband and wife, granting them ownership rights upon the original owner's death while retaining the right to live in the property during their lifetime. 2. Joint Enhanced Life Estate Deed — Husband and Wife to Themselves: This variation enables a husband and wife who jointly own the property to transfer their property to themselves with enhanced life estate rights. This means that both individuals continue to possess full ownership and control of the property throughout their lifetimes but allows for an automatic transfer to the surviving spouse upon one partner's passing. In conclusion, Ann Arbor, Michigan's Enhanced Life Estate or Lady Bird Deed is a highly advantageous estate planning tool for property owners. Whether opting for individual to husband and wife or joint husband and wife arrangements, this deed provides control, probate avoidance, Medicaid planning, and potential tax benefits. It is essential to consult with a knowledgeable attorney specializing in real estate and estate planning to understand the legal implications and ensure a seamless transfer of the property.
