What is a Lady Bird deed?
It is a transfer-upon-death deed often used by a person regarding the homestead. It names potential ultimate owners of the property as transferees/grantees. It has many advantages, including (1) the transferor (grantor) retains ownership control of the residence during life, thus could otherwise dispose of the premises, (2) the “transfer” does not constitute a completed gift for federal gift tax, Medicaid eligibility purposes (therefore no disqualifying divestment occurs) or property tax reassessment purposes, (3) the homestead remains an exempt asset for Medicaid qualification purposes, (4) avoiding probate of the homestead upon the transferror’s death, and (5) the premises receive a step-up in income tax cost basis to fair market value upon the death of the transferor. [Back to top] DISCLAIMER: This site and any information contained herein are intended for informational purposes only and should not be construed as legal advice. Seek competent legal counsel for advice on your particu
