If you or your elderly loved one has moved into an assisted living or nursing home facility, there may be questions about what to do with the house that’s left behind. Your family home is likely full of happy memories and priceless belongings that you’d like to preserve for as long as possible. In situations like this, it is best to plan carefully and consider all the variables of each available option.
An enhanced life estate deed, commonly called a lady bird deed, is a popular solution when selling the home isn’t a feasible or desirable option. The Werner Law Group has created lady bird deeds for many clients. We provide a mobile notary to notarize the deed onsite at the nursing home, and this can often be completed as a same-day service.
What is a Lady Bird Deed?
A lady bird deed, or enhanced life estate deed, is a legal document that allows a named beneficiary to receive ownership of the home upon the death of the grantor or homeowner. However, prior to death, this type of deed lets the homeowner retain a higher level of control over the home. If you create a lady bird deed for your family home, you can still use the home for whatever purposes you wish, including selling or leasing it, without consent from your beneficiary.
How Does Medicaid Affect a Family Home?
End-of-life care is expensive, and there is no way to accurately predict what the exact cost will be. Very few people can cover these costs out-of-pocket, which means Medicaid is a valuable tool for older individuals who need nursing home care. However, there are income and other financial considerations in order to qualify for Medicaid. Many people choose to limit their assets in order to receive assistance with the costs of assisted living, nursing homes, and medications often associated with old age.
What are the Benefits of a Lady Bird Deed?
A lady bird deed can be especially beneficial if you or your family member is relying on Medicaid to help cover the extensive costs of a nursing home. This is because these deeds preserve the house as an inheritable asset that is exempt from Medicaid eligibility requirements.
Aside from Medicaid considerations and the benefit of maintaining increased control over the property, avoiding probate is an additional advantage to creating a lady bird deed.
If you have questions about which options are best suited to you or your loved one’s needs, The Werner Law Group is happy to help you decide how to prepare for this next stage of your life. You can text all of your estate planning questions to Leslie seven days a week at 361-648-6888.