# Ladybird Deed



## Heartbroken (12 mo ago)

I had never heard of such a thing until my Mom researched it and got it done for her house. I thought I'd mention it in case someone else hadn't heard of it. I may not explain it well, but once you have the idea you can check with a local attorney to see if it fits for you. Basically it's a way to tie up your property so that if you end up in an old person storage facility on medicaid, the government can't take your home to pay the medicaid bills. It protects your real estate so that it can go to your heirs.
My mom found out about it through her job working in such a facility, and seeing families devastated when their elderly relative loses their home to the government for medicaid costs. She didn't want that to happen to us, so she did some checking and found an attorney that specializes in elder law. I guess it's named after Ladybird Johnson, because she saw women who had been homemakers their whole lives losing their homes when their husbands died, and made changing that a priority.
I just went to the attorney and had it all drawn up for my home. It covers last wishes, wills, power of attorney, sets it all up so that when I get my chance to go, my daughter gets everything without going through probate or paying taxes or any other government interference. It also prevents the state from seizing my property if I end up living on medicaid. She's listed as the beneficiary on all assets, and after the trauma of my husband's sudden passing, I'm especially relieved to have that all covered for her.
So if like me you'd never heard of it, I'd recommend checking it out.


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## NRA_guy (Jun 9, 2015)

This link explaining it might be helpful.

ETA: "Lady bird deeds are available in only five states: Florida, Texas, Michigan, Vermont, and West Virginia."

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Lady Bird Deed. The term lady bird deed comes from a fact pattern used by Florida attorney Jerome Ira Solkoff in his teaching materials. 

Solkoff would use fictional characters to illustrate the use of this type of deed. 

One character was former United States President Lyndon Johnson’s wife, Claudia Alta “Lady Bird” Johnson. 

As Solkoff popularized this type of deed, people began to refer to it as the lady bird deed or ladybird deed instead of the technical name, enhanced life estate deed.
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## altair (Jul 23, 2011)

We see people doing life estate deeds quite often, I wonder if the two are similar.


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## Evons hubby (Oct 3, 2005)

altair said:


> We see people doing life estate deeds quite often, I wonder if the two are similar.


My father used a life estate deed to ensure my brothers and I got the farm when he passed. Worked well.


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## Heartbroken (12 mo ago)

Only five states? I didn't know that. I wonder if the other states have something similar.


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## Evons hubby (Oct 3, 2005)

Kentucky does.


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## Danaus29 (Sep 12, 2005)

Ohio eliminated the estate tax this year. They may eventually put it back in place, depends on what the next regime decides.


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## Wanda (Dec 19, 2002)

If health and long-term care are provided why should they not pay??? Do you think that the taxpayers should pay it when they have assets?


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## Heartbroken (12 mo ago)

My objection is to the loss of the homestead to the government. No, I don't think the tax payers should cover everyone's bills; but then again these old people were taxed all their lives and paid into the system, so....it can get to be a complicated argument. Why is it so incredibly expensive to be in long term care? Why are people being charged outrageous prices for a tiny sleeping place and someone to help them shower twice a week? Prices that would have paid the mortgage on a big house in a wealthy neighborhood? Our healthcare system is a rotten mess and it's only getting worse.
If the government didn't use medicaid as a way to browbeat people into accepting being stored in a small room with a roommate, no dignity, privacy, and often not enough staff to provide adequate care, and then take their home for the privilege it would be one thing. But the medicaid folks use it like a weapon and are just as rapacious as the IRS and just as heartless. I want no part of that to affect my daughter.
Instead of seizing the home, why not allow the family to work out a payment plan? Or better yet, change policies so that at-home care becomes more affordable and a true option. My aunt was in a position to give my grandparents a place to live in their last years, and while it was hard on her sometimes, it was so much better for everyone than being locked up somewhere.
I don't pretend to have the answers, but it is my responsibility to prepare as much as possible so that my daughter isn't worked over by the government when I'm gone. It's part of my mama bear duty to protect her.


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## JosephSeiss (May 3, 2017)

Heartbroken said:


> My objection is to the loss of the homestead to the government. No, I don't think the tax payers should cover everyone's bills; but then again these old people were taxed all their lives and paid into the system, so....it can get to be a complicated argument. Why is it so incredibly expensive to be in long term care? Why are people being charged outrageous prices for a tiny sleeping place and someone to help them shower twice a week? Prices that would have paid the mortgage on a big house in a wealthy neighborhood? Our healthcare system is a rotten mess and it's only getting worse.
> If the government didn't use medicaid as a way to browbeat people into accepting being stored in a small room with a roommate, no dignity, privacy, and often not enough staff to provide adequate care, and then take their home for the privilege it would be one thing. But the medicaid folks use it like a weapon and are just as rapacious as the IRS and just as heartless. I want no part of that to affect my daughter.
> Instead of seizing the home, why not allow the family to work out a payment plan? Or better yet, change policies so that at-home care becomes more affordable and a true option. My aunt was in a position to give my grandparents a place to live in their last years, and while it was hard on her sometimes, it was so much better for everyone than being locked up somewhere.
> I don't pretend to have the answers, but it is my responsibility to prepare as much as possible so that my daughter isn't worked over by the government when I'm gone. It's part of my mama bear duty to protect her.


I agree with your sentiments. Saying “Why shouldn’t you have to pay back 500 dollars to the government for buying you 3 bananas while you were in long term care” is a poor grasp of how usuristic the health care industry is. I’ve seen the bottom line on these bills before and they are pathetic, 5 dollars for a bandaid 150 dollars for a nurse to take your blood pressure, its unreal.


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## mreynolds (Jan 1, 2015)

I helped a friend of mine do a Ladybird deed last year. This was Texas of course.


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## YourExpress (6 mo ago)

I also have never heard about it. Good to know that precedent cases like this exist, and I can refer to them when necessary. Thank you all for the answers in the thread! 
Probably I will have to use something like that because I’ve heard that in our town one guy lost his father’s house because of this program. When the time comes, I will hire a good construction and building lawyer and do all I can to pass my house to my kids. I don’t want to lose it because of this medicare I don’t even use. So, what do you think about that? Will the lawyer help for sure?


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## boatswain2PA (Feb 13, 2020)

There are lots of ways to avoid this. 

First and foremost is to have long term care insurance if you have assets that need to be protected. 

Can also create a living trust and put assets into that. Kind of a pain in the rear if you ever want to sell any of the assets, but good way to protect them. Likewise can put them into an LLC whose ownership can transfer on death to your kin and therefore avoid probate.

I'm not an attorney, and this is not legal advice.


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## Heartbroken (12 mo ago)

I don't know about a construction and building lawyer; the lawyer I went to specializes in elder law. Their whole practice is setting up trusts and estate planning and stuff like that. It was pretty straightforward and not expensive or time-consuming, but then again all I have is the house, so didn't need a big complicated estate plan.


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## Danaus29 (Sep 12, 2005)

Heartbroken said:


> I don't know about a construction and building lawyer; the lawyer I went to specializes in elder law. Their whole practice is setting up trusts and estate planning and stuff like that. It was pretty straightforward and not expensive or time-consuming, but then again all I have is the house, so didn't need a big complicated estate plan.


The best advice I can give is to never take legal advice from people who live in other countries. I suspect that poster is a spammer.


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## Heartbroken (12 mo ago)

Ha. I answered their thought without realizing they had a link for "construction and building lawyer" which I didn't even think was a thing. Oh well.


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