A ladybird deed is a deed that allows you to retain control of your real estate while you are living but you designate the individuals who you would like to take that real estate after you pass away. According to the American Council on Aging, a ladybird deed allows this real estate to pass without the need for probate. All your named beneficiaries on the deed have to do to show their ownership in the real estate is to record your death certificate with the register of deeds.
This is a better way of passing real estate than naming joint owners on your property. The reason for this is that you continue to have control of that property, and you can sell it without getting permission or authority from any other parties. Additionally, the property will not be subject to the creditor’s claims or any other individuals, and that is definitely an advantage of a Ladybird deed. Ladybird deeds are generally a good option for consideration for older individuals who have perhaps one to four people who they would like to name on the deed to receive it after they pass away.
If you have more people than that you would like to designate to receive your real estate, it can become complicated in the management of the property when you pass. A different estate planning tool may be a better choice. It is also not always a good option for individuals who have young children, because you may not want to pass the real estate to individuals under the age of 18.