Many people are eager to avoid probate, especially as to their homestead, when they pass on their estates.  Frequently, people add names of children or other relatives to the deed to their home.  This option, while quick and inexpensive, has many risks associated with it and should be considered very carefully.  Sometimes people transfer their home to a relative and retain the right to live in the home until they die; this is called a life estate deed and it will avoid probate, while allowing the owner to continue the use of the property until death.  But like adding names to a deed, it can't be changed without the consent of the "remainder" tenant. 
 
Another option-commonly referred to as a  "Lady Bird" deed-has been steadily gaining acceptance.  It is technically called an "enhanced life estate deed."  This type of deed allows the owner of the home to keep all the rights to the property in his or her name until death; the property then transfers after death, without any probate.  The name comes from Lady Bird Johnson, President Lyndon Johnson's wife. President Johnson used this type of deed as an estate planning technique to ensure property passed to Lady Bird after his death, without the necessity of probate. 

 

 

On April 30, Elder Law of Michigan honored six outstanding Michigan leaders for answering the call to ensure justice, fairness and economic security for older adults, and for their considerable contributions to the fields of law and aging. To remember the man that inspired the vision of the Call to Justice Award, please view our tribute to Joe D. Sutton, Esq.

Wider Opportunities for Women (WOW) is encouraging all Americans to write a blog or give a response to a blog answering the question: What can President Obama and Congress do to help Americans be economically secure while balancing the budget?

Elder Law of Michigan's Executive Director, Kate White, will be posting her comments and welcome's your thoughts and feedback.  See the WOW blogs or post your comments.