A lady bird deed (also called a ladybird deed or an enhanced life estate deed) is a special form of life estate deed that gives the owner continued control over the property until his or her death. Once the owner dies, the property is transferred automatically to new owners or a Trust without the need for probate. This type of planning is especially important in Michigan due to Michigan’s Estate Recovery program. With Estate Recovery, the Michigan Department of Health and Human Services (MDHHS) will seek repayment of benefits received from Medicaid from any asset which goes through probate, such as a home that is not part of an advanced life estate.
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