Search

Do you know Ladybird?

Annette, a widowed woman with two adult children has a home, which is paid off. She has a checking account, savings account and a life insurance policy, all of which have her children as beneficiaries or transfer-on-death designees. Since she intends for her children to get the house immediately when she passes, she wants to make them joint owners via quit claim deed. Sounds like she is set to avoid probate court and will have no issues moving forward, right? Not so fast. The monkey wrench is that her son has a tremendous amount of debt. Why is this relevant? If he is a joint owner of the home, this could open up the home to creditors! So, what’s the answer?

Meet, Ladybird. Michigan is one of a few states that allow for property transfers via ladybird deed. The ladybird deed, which is officially known as an enhanced life estate deed, gives you the power to retain control of your property during your lifetime, including the right to rent it out, or even to sell it. However- it STILL avoids probate! The grantee’s interest in the property does not mature until after your death! This is an attractive option to Ann. If one of her children filed for bankruptcy, got sued, or even divorced, the property would not be considered one of their assets.

This is just one of many examples that demonstrate the need to talk to an estate planning attorney as soon as possible. Although you may have the very best intentions, there are certain implications that you may not be aware of! You want to make sure your wishes are honored AND that your assets are protected. Contact us today!!

P: (248) 395-3699 E: attyinfo@cg-legal-solutions.com

*Please be sure to read the disclaimer section on our site!

0 comments

Recent Posts

See All

To revoke or to not revoke? That is the question…

A trust is an estate planning tool that a person sets up during their lifetime, which allows them a way to distribute their assets upon their death, while maintaining privacy for themselves and their

You Think You Know… But You Have No Idea

We cannot stress enough the importance of planning to avoid probate court. Probate is a court-supervised process of gathering a deceased person’s assets and distributing them to creditors and inherito

When Time Has Run Out…

We are often contacted by individuals attempting to get power of attorney over a parent, sibling, child or other relative AFTER they have fallen ill- whether it’s on account of Alzheimer’s, a debilita