What to know before your decide
When it comes to protecting your home and passing it on to your loved ones, a Michigan Lady Bird Deed (also called an enhanced life estate deed) is a popular estate planning tool. It lets you keep full control of your property during your lifetime while ensuring it transfers automatically to your beneficiaries — without going through probate.
But a Lady Bird Deed isn’t the only way to achieve those goals. Depending on your family situation, assets, and estate planning priorities, other legal tools may be more effective. Here are the most common Lady Bird Deed alternatives and how they compare.
Traditional Life Estate Deed
A traditional life estate deed also transfers property automatically at death. However, once you sign it, you give up key rights — you can’t sell, refinance, or mortgage the property without your beneficiaries’ approval. This makes it far less flexible than a Lady Bird Deed, which allows you to maintain full control during your lifetime.
Revocable Living Trust
A revocable living trust is one of the most comprehensive alternatives to a Lady Bird Deed. You transfer ownership of your home and other assets into the trust, act as the trustee while you’re alive, and name who receives them after you pass.
Like a Lady Bird Deed, it avoids probate. But it also provides greater control, privacy, and coverage for all assets — not just real estate. Trusts are especially useful for families with multiple properties, complex estates, or out-of-state real estate.
Joint Ownership
Adding a spouse or child to your deed as a joint tenant with rights of survivorship means the surviving co-owner automatically inherits the property. While simple, it comes with potential downsides.
The new co-owner immediately gains legal rights to the home, which can create issues if they face divorce, creditor claims, or bankruptcy. It can also affect tax benefits because the surviving owner won’t receive a full “step-up in basis” at death.
Last Will and Testament
A last will and testament allows you to specify who receives your property, but it doesn’t avoid probate. Your estate must go through the court process before assets transfer to heirs, which can take months and add legal costs.
While a will is essential for naming beneficiaries and guardians, it’s not an efficient way to transfer real estate on its own.
Which Option Is Right for You?
Each estate planning strategy offers unique advantages. Your choice depends on factors like your age, family relationships, financial goals, and long-term care plans.
For many Michigan homeowners, the Lady Bird Deed strikes the best balance — offering probate avoidance, lifetime control, and a simple, affordable way to pass property directly to loved ones.
Frequently Asked Questions About Lady Bird Deed Alternatives
Can I use a Lady Bird Deed and a trust together?
Yes. Many Michigan residents use both. The Lady Bird Deed can transfer your home to your revocable living trust at death, combining the simplicity of the deed with the flexibility of a trust.
Are Lady Bird Deeds legal in all states?
No. Lady Bird Deeds are recognized in only a few states, including Michigan, Florida, and Texas. If you own property in another state, you may need a different strategy such as a trust or transfer-on-death deed.
What’s the tax impact of a Lady Bird Deed?
Generally, your beneficiary receives a “step-up in basis” when they inherit property through a Lady Bird Deed, potentially reducing capital gains taxes if they sell the home later.
Is a Lady Bird Deed better than joint ownership?
Usually, yes. A Lady Bird Deed avoids probate without giving up control or exposing the property to your co-owner’s legal or financial problems, which joint ownership can do.
Do I need a lawyer to create a Lady Bird Deed or trust?
While DIY forms exist, working with an experienced Rochester, Michigan estate planning attorney ensures your documents meet state requirements and align with your full estate plan.
Talk to a Michigan Estate Planning Attorney About Your Lady Bird Deed Options
At Sumner & Associates, P.C., we help Michigan families understand their estate planning options and choose the best way to protect their homes and loved ones. Whether you’re considering a Michigan Lady Bird Deed or exploring other estate planning strategies like living trusts or joint ownership, our experienced attorneys will help you make an informed decision tailored to your goals.
Our law firm proudly serves clients throughout Michigan’s Lower Peninsula, including Oakland, Macomb, Wayne, Washtenaw, Livingston, Genesee, Ingham, Kent, Kalamazoo, and Ottawa Counties — as well as the northern Michigan lake and cottage regions. We frequently assist clients in Grand Traverse County, Antrim County (Torch Lake area), Charlevoix County (Lake Charlevoix and Boyne City), Emmet County (Petoskey and Harbor Springs), Cheboygan County (Burt Lake area), and Alpena County along Lake Huron.
Whether you own a primary home, vacation cottage, cabin, lake house, hunting camp, fishing property, or vacant land, a Lady Bird Deed in Michigan can help you maintain control during your lifetime while ensuring your property transfers smoothly and privately to your beneficiaries — without the delays and costs of probate.
If you’d like to explore whether a Lady Bird Deed or another Michigan estate planning strategy is the right fit for your needs, contact Sumner & Associates, P.C. today. We’ll help you protect what you’ve built and ensure your property passes exactly as you intend.
Call (248) 650-0055 or visit www.sumnerpc.com to schedule your free estate planning consultation.
