If you’re considering Medicaid and want to protect your home from recovery after you pass away, a Lady Bird deed may be a helpful tool. This legal document allows homeowners to transfer property to beneficiaries while still retaining full control during their lifetime. It’s important to understand how this works, especially in Florida, where Medicaid rules can be strict.
What is a Lady Bird deed?
A Lady Bird deed, also called an enhanced life estate deed, is a legal document that lets you transfer your property to someone else upon your death while still retaining the ability to live in and control the property during your lifetime. This includes the ability to sell, mortgage, or change the beneficiary of the property. The major benefit of this deed is that it bypasses probate court, making it easier for your heirs to inherit the property.
How does a Lady Bird deed help with Medicaid recovery?
In Florida, Medicaid may attempt to recover the costs of long-term care from the estate of a deceased Medicaid recipient. However, if you have a Lady Bird deed in place, the property will not be subject to Medicaid recovery. This is because, while you still own the property during your lifetime, the transfer to the beneficiary does not count as a transfer of assets for Medicaid purposes. The property is not considered part of your estate for recovery after your death.
What makes the Lady Bird deed different from other deeds?
Other types of deeds, such as a regular life estate deed, could still expose your home to Medicaid recovery. With a Lady Bird deed, you can retain full control over your home and make changes as needed. The beneficiary has no rights to the property until your passing, protecting it from creditors and Medicaid claims.
Protecting your property with a Lady Bird deed
A Lady Bird deed can be a smart way to protect your home while still qualifying for Medicaid. By retaining control over your property, you ensure that Medicaid cannot claim it after your death, making it easier for your heirs to inherit it.