This form is a Warranty Deed with a retained Enhanced Life Estate where the Grantors are husband and wife and the Grantees are husband and wife. The form is also known as a "Lady Bird" Deed. Grantors convey the property to Grantees subject to an enhanced retained life estate in each of the Grantors. The Grantors retain for life 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.
McKinney Texas Enhanced Life Estate or Lady Bird Warranty Deed is a legal instrument commonly used in real estate transactions, specifically for the transfer of property between a husband and wife. This type of deed offers certain advantages and protections to the parties involved. Let's delve into the details and explore different variations of this deed. Enhanced Life Estate Deed: An Enhanced Life Estate Deed, also known as a Lady Bird Deed, is a powerful estate planning tool that enables spouses to retain control and ownership of their property during their lifetime, while also ensuring a seamless transfer of the property to the surviving spouse or designated beneficiaries upon death. This type of deed allows the property to avoid probate, saving time and costs associated with the probate process. Benefits of the Enhanced Life Estate Deed include: 1. Retention of control: The granters (husband and wife) are able to retain control over the property, including the ability to sell, mortgage, or give away the property without the need for consent from beneficiaries. 2. Retention of homestead exemptions and property tax benefits: The granters can continue to claim homestead exemptions and other property tax benefits while alive. 3. Avoidance of probate: Upon the death of the granters, the property automatically transfers to the surviving spouse or designated beneficiaries without the need for probate court involvement. 4. Protection against Medicaid recovery: In certain cases, the Enhanced Life Estate Deed can shield the property from Medicaid recovery, allowing the granters to maintain eligibility for Medicaid benefits if needed in the future. Lady Bird Warranty Deed: The Lady Bird Warranty Deed is a specific type of Enhanced Life Estate Deed that originated in the state of Texas. Named after Lady Bird Johnson, the former First Lady, this deed includes an additional warranty, granting the granters the right to convey the property and defend title against any claims or challenges. This warranty provides an extra layer of protection for the granters and ensures the smooth transfer of the property. Different variations of McKinney Texas Enhanced Life Estate or Lady Bird Warranty Deed: While the Enhanced Life Estate Deed and Lady Bird Warranty Deed serve similar purposes, it's important to note that variations can exist based on specific preferences and circumstances. Some potential variations of these deeds include: 1. Individual to Individual: This type of deed involves the transfer of property between two individuals, typically a husband and wife, but can also be used for other family members, such as parents to children or siblings to siblings. 2. Joint Tenancy with Right of Survivorship: With this variation, the property is transferred into joint ownership between husband and wife, ensuring that full ownership automatically passes to the surviving spouse upon the death of one of the spouses, without the need for probate. 3. Revocable or Irrevocable: Depending on the estate planning goals, the Enhanced Life Estate or Lady Bird Warranty Deed can be drafted as either revocable or irrevocable, allowing flexibility or permanence in the terms of the deed. In conclusion, McKinney Texas Enhanced Life Estate or Lady Bird Warranty Deed offers a valuable tool for couples looking to protect their property rights and simplify the transfer of assets. By utilizing these specific deed types, married couples can ensure a seamless transition of property ownership while maintaining control and flexibility during their lifetime.
