Ladybird Deed

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Heartbroken

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Not the usual topic for "prepping", but I think relevant because part of prepping is considering how to preserve what you have for family. I had never heard of a ladybird deed until my Mom researched it and got it done for her house. I thought I'd mention it in case someone else hadn't heard of it. I may not explain it well, but once you have the idea you can check with a local attorney to see if it fits for you. Basically it's a way to tie up your property so that if you end up in an old person storage facility on medicaid, the government can't take your home to pay the medicaid bills. It protects your home so that it can go to your heirs.
My mom found out about it through her job working in such a facility, and seeing families devastated when their elderly relative loses their home to the government for medicaid costs. She didn't want that to happen to us, so she did some checking and found an attorney that specializes in elder law. I guess it's named after Ladybird Johnson, because she saw women who had been homemakers their whole lives losing their homes when their husbands died, and made changing that a priority.
I just went to the attorney and had it all drawn up for my home. It covers last wishes, wills, power of attorney, sets it all up so that when I get my chance to go, my daughter gets everything without going through probate or paying taxes or any other government interference. It provides guidance should I be brainless in a hospital (turn off the machines!) and everything is signed so she can act on my behalf. I intend to have the house paid off before I retire, but I made sure that my life insurance is enough to pay out the mortgage so she'll have it free and clear if I go soon. The documents cover everything, including the materials in the house, so all the preps I have stored, be it for food, water, self defense will transfer to her. Through some quirk of the law, it doesn't cover vehicles, but with these documents, all she has to do is take a copy of my death certificate to the Secretary of State and have the vehicle title reissued in her name. It also prevents the state from seizing my property if I end up living on medicaid. She's listed as the beneficiary on all assets, and after the trauma of my husband's sudden passing, I'm especially relieved to have that all covered for her.
So if like me you'd never heard of it, I'd recommend checking it out.
 

Pearl

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Not the usual topic for "prepping", but I think relevant because part of prepping is considering how to preserve what you have for family. I had never heard of a ladybird deed until my Mom researched it and got it done for her house. I thought I'd mention it in case someone else hadn't heard of it. I may not explain it well, but once you have the idea you can check with a local attorney to see if it fits for you. Basically it's a way to tie up your property so that if you end up in an old person storage facility on medicaid, the government can't take your home to pay the medicaid bills. It protects your home so that it can go to your heirs.
My mom found out about it through her job working in such a facility, and seeing families devastated when their elderly relative loses their home to the government for medicaid costs. She didn't want that to happen to us, so she did some checking and found an attorney that specializes in elder law. I guess it's named after Ladybird Johnson, because she saw women who had been homemakers their whole lives losing their homes when their husbands died, and made changing that a priority.
I just went to the attorney and had it all drawn up for my home. It covers last wishes, wills, power of attorney, sets it all up so that when I get my chance to go, my daughter gets everything without going through probate or paying taxes or any other government interference. It provides guidance should I be brainless in a hospital (turn off the machines!) and everything is signed so she can act on my behalf. I intend to have the house paid off before I retire, but I made sure that my life insurance is enough to pay out the mortgage so she'll have it free and clear if I go soon. The documents cover everything, including the materials in the house, so all the preps I have stored, be it for food, water, self defense will transfer to her. Through some quirk of the law, it doesn't cover vehicles, but with these documents, all she has to do is take a copy of my death certificate to the Secretary of State and have the vehicle title reissued in her name. It also prevents the state from seizing my property if I end up living on medicaid. She's listed as the beneficiary on all assets, and after the trauma of my husband's sudden passing, I'm especially relieved to have that all covered for her.
So if like me you'd never heard of it, I'd recommend checking it out.
THANK YOU!! Thank you very much for posting that!
 

joel

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Does South Carolina recognize a Lady Bird deed?
States such as Georgia and South Carolina, however, do not allow Lady Bird Deeds. At this point in time, they are allowable in North Carolina and this is a very good way, especially in an emergency situation, to transfer assets.

Is a Lady Bird deed better than a trust?
If your primary home constitutes most of your net worth, the Lady Bird deed cost will be much less than the cost of having a revocable trust created. If you have a significant amount of property of any type in addition to your primary home, a revocable trust may be a better way to go. Lady Bird deed vs. will. May 2, 2022
If your home is Mortgage free, you can set up a reversed Mortgage & you child or person will own your home at your death.
 

Sourdough

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I just went to the attorney and had it all drawn up for my home. It covers last wishes, wills, power of attorney, sets it all up so that when I get my chance to go, my daughter gets everything without going through probate or paying taxes or any other government interference.

Just roughly, in very broad round numbers, what did they charge for that service......???
 

Weedygarden

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If your home is Mortgage free, you can set up a reversed Mortgage & you child or person will own your home at your death.
Are you sure about this? I thought a reverse mortgage gave you cash for your home and you could continue to live there until your death, at which time, the house becomes the property of some company who did the reverse mortgage with you. I suspect people like Bill Gates to be involved in these companies or corporations, so they can buy up all the property in America.
 

Angie

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This looks like something to at least check out for the state you are in. But if you are in between home and nursing home, need assisted living there is nothing that covers that unless you have long term care insurance, or sell your home and use it until it's gone. When gone you'll have to possibly go to a nursing home and medicaid if you qualify, or just be out helpless unless a family / friend comes and gives you a place to live and take care of all your needs. The assisted living is very expensive and medicaid does not cover any of it.
 

Wingnut

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Hi Dez!!!
On a lesser but still important note, it's wise to have a "beneficiary deed" in place if you own your home, especially if your relatives live out of state. This simple deed costs $20 or less, and it saves out-of-state relatives & heirs from dealing with gubmint red tape and probate court and all that BS. I first learned about these deeds in Arizona, as I wanted my niece & nephew in San Diego to have my home if I got hit by a train or a truck, lol. As a bachelor, I don't have any direct heirs, you understand, so it's important for me to get this deed in place whenever I buy a home. I think of it as "cheap insurance" for the heirs, so they don't get drawn into some big hassle over inheritance. Terms are cut & dried, once I'm dead this home goes to my heirs, no worries and no probate court. Totally worth the money, it's a one-time filing good until you die or sell the home, whichever comes first. Here in New Mexico, the county calls it a "Transfer On Death" deed, lol... no mincing words in the Old West, aye? I recommend such a deed to any in a similar position with out-of-state heirs, it's cheap and effective. It does NOT carry the protections mentioned by the OP here, with regard to medical costs & whatnot, but it DOES carry SOME important protections, and it allows my heirs to make decisions WITHOUT having to deal with gubmint red tape. :confused:
 

Sourdough

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I am sure it has some special applications. The short coming is you still own the home or property. The government in nearly all states has a (5) five year look back. This is the problem, plus if you get litigated against for "any reason" AT ANY AGE it does not protect you.

On a lesser but still important note, it's wise to have a "beneficiary deed" in place if you own your home, especially if your relatives live out of state. This simple deed costs $20 or less, and it saves out-of-state relatives & heirs from dealing with gubmint red tape and probate court and all that BS. I first learned about these deeds in Arizona, as I wanted my niece & nephew in San Diego to have my home if I got hit by a train or a truck, lol. As a bachelor, I don't have any direct heirs, you understand, so it's important for me to get this deed in place whenever I buy a home. I think of it as "cheap insurance" for the heirs, so they don't get drawn into some big hassle over inheritance. Terms are cut & dried, once I'm dead this home goes to my heirs, no worries and no probate court. Totally worth the money, it's a one-time filing good until you die or sell the home, whichever comes first. Here in New Mexico, the county calls it a "Transfer On Death" deed, lol... no mincing words in the Old West, aye? I recommend such a deed to any in a similar position with out-of-state heirs, it's cheap and effective. It does NOT carry the protections mentioned by the OP here, with regard to medical costs & whatnot, but it DOES carry SOME important protections, and it allows my heirs to make decisions WITHOUT having to deal with gubmint red tape. :confused:
 

Supervisor42

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This looks like something to at least check out for the state you are in. But if you are in between home and nursing home, need assisted living there is nothing that covers that unless you have long term care insurance, or sell your home and use it until it's gone. When gone you'll have to possibly go to a nursing home and medicaid if you qualify, or just be out helpless unless a family / friend comes and gives you a place to live and take care of all your needs. The assisted living is very expensive and medicaid does not cover any of it.
This is of paramount importance.
Nobody wants to think about their final years or plan for it.
Very important for people that do not have children that are willing to take care of them and live alone.
With the medical care we have today, many more are living years past when they can take care of themselves.
If you have no choice but throwing yourself in the hands of the government, they will vaporize anything/everything you ever had.:mad:
 
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angie_nrs

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In my state the ladybird deed is just a deed that transfers the land deed over to the person you name on it. It does not do anything else. Other paperwork does the other things listed such as Power of Medical Attorney, Power of Financial Attorney, Will, etc. They are all seperate documents but should be part of an overall plan.

The advantages of the ladybird deed are that it's inexpensive (around $400 here), it avoids probate for property, it offers tax savings for heirs, and it's an easy transfer upon death. However, there are other things to consider in estate planning as others have mentioned in this thread.

Here's another discussion about estate planning it that may be of interest.
 

Heartbroken

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Sourdough it was right around $1,000. That covered not only the deed, but the Power of Attorney, Will, and so on. It's a big stack of papers with lots of big words.
The five year look back is bad, the govt will take or demand repayment of any gifts, so when my mom divided her assets she didn't give us money. She's 80 and didn't want to risk anything happening within that five years.
Winds of change I don't pretend to understand it all, but the atty explained that with my particular assets and age and so on the ladybird was better than a trust. He said he would only advise the trust if I was concerned about my daughter trying to take the money before I was dead, or if she was married to a guy I didn't trust or something. Since she's single and a good kid, I had no worries and the ladybird was easier to set up and best for my circumstances.
A reverse mortgage just sounds hinky, I didn't even look into it.
I've also met with a financial advisor. Sadly, he says I can't retire at 60. (I was joking anyways, but it would have been nice.) Also sadly, he says based on my family history and my health he's working the plan with me living to 100. No way do I want to live that long. The big decisions I'm struggling with are to spend the money now, perhaps delaying retirement til 72 or so, to remodel the house so I can age in place, or just live with it the way it is, then sell it when I retire and move to a different place that I can actually afford to heat. Or do I pay to have this place insulated and put in a heat pump? Or do I sell out and go to a single story home? Or do I add a garage and breezeway with a laundry and handicap bathroom, so I don't fall in the tub or on the basement stairs? Oy, I'm so lost without my husband, he was the smart one.
 

Pearl

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Sourdough it was right around $1,000. That covered not only the deed, but the Power of Attorney, Will, and so on. It's a big stack of papers with lots of big words.
The five year look back is bad, the govt will take or demand repayment of any gifts, so when my mom divided her assets she didn't give us money. She's 80 and didn't want to risk anything happening within that five years.
Winds of change I don't pretend to understand it all, but the atty explained that with my particular assets and age and so on the ladybird was better than a trust. He said he would only advise the trust if I was concerned about my daughter trying to take the money before I was dead, or if she was married to a guy I didn't trust or something. Since she's single and a good kid, I had no worries and the ladybird was easier to set up and best for my circumstances.
A reverse mortgage just sounds hinky, I didn't even look into it.
I've also met with a financial advisor. Sadly, he says I can't retire at 60. (I was joking anyways, but it would have been nice.) Also sadly, he says based on my family history and my health he's working the plan with me living to 100. No way do I want to live that long. The big decisions I'm struggling with are to spend the money now, perhaps delaying retirement til 72 or so, to remodel the house so I can age in place, or just live with it the way it is, then sell it when I retire and move to a different place that I can actually afford to heat. Or do I pay to have this place insulated and put in a heat pump? Or do I sell out and go to a single story home? Or do I add a garage and breezeway with a laundry and handicap bathroom, so I don't fall in the tub or on the basement stairs? Oy, I'm so lost without my husband, he was the smart one.
You are very smart, you are checking out/ thinking about options! I have a feeling you will make the right decision!! Thanks for sharing. You'll get a lot of options/opinions here, all meant for good!!
 

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