Are you looking for a lady bird deed template? Then grab your free form here plus soak up the must-know facts before inking it.
So where did this deed get its curiously-cute name from? According to popular folklore, U.S. President Lyndon Johnson once made use of this deed to transfer some property to his wife Claudia "Lady Bird" Johnson. No one can confirm this for sure, but nevertheless the colorful name stuck. It's helpful to know that this deed is also known as an enhanced life estate deed.
In plain English, a ladybird deed allows you (the grantor) to 1. leave behind your property to your beneficiaries while avoiding probate 2. stay in the property as long as you are alive 3. sell, mortgage or give the property to someone else without your beneficiaries' permission. Point 3 is what makes this deed different (and safer for the grantor) vs. a regular Life Estate Deed.
Now to answer the question that matters most: What are the benefits of lady bird deeds? 1. Avoid probate (quick and painless property transfer after death) 2. Property is inherited at a stepped-up basis (no capital gains tax) 3. Property is protected from the grubby hands of your beneficiaries' creditors (no liens, no claims, no worries).
If you live in California CA, Florida FL, Texas TX, Michigan MI, Ohio OH or Kansas KS, then you are in luck - These states embrace ladybird deeds with open arms. If you live elsewhere, then it's time for you to meet a beneficiary deed (which performs almost the same magic). To learn more, Click here for our free Beneficiary Deed Form.
*Make sure this free enhanced life estate deed form complies with your local real estate laws before using it. If you have any doubts, you can ask a real estate lawyer online.
This Deed is made on this day of _______________, 20__, between the Grantor ___________
___________________ of address __________________________________________________ and the Grantee Beneficiary ______________________________ of address _______________
For good and valuable consideration paid by the Grantee Beneficiary, the receipt of which is hereby acknowledged, the Grantor does transfer and convey the following described property to the Grantee Beneficiary effective on the Grantor's death:
Property Address: _________________________________________________________________
Legal Description: _________________________________________________________________
The Grantor reserves a life estate for himself/herself during the Grantor's lifetime coupled with an unrestricted power to convey during the Grantor's lifetime, which includes the power to sell, gift, mortgage, lease and otherwise dispose of the property, and to retain the proceeds from the conveyance.
EXECUTED this day of _______________, 20__.
Grantor Name: _________________________
Grantor Signature: ______________________
STATE OF _________________________
COUNTY OF _________________________
On this day, personally appeared before me, _________________________, to me known to be the person(s) described in and who executed the within instrument, and acknowledged that he/she signed the same as his/her voluntary act and deed, for the uses and purposes therein mentioned.
Witness my hand and official seal hereto affixed on this day of _______________, 20__.
Notary's Public Signature: ______________________
My commission expires _______________.