An Enhanced Life Estate Deed, aslo known as a Lady Bird Deed (nicknamed after Lady Bird Johnson, Former U.S. President Lyndon Johnson's wife), is a deed normally used as an estate planning tool.
This deed is usually a great asset for those trying to avoid the need for Probate after their death. With this deed there is no transfer of any present beneficial interest in real property. The current owners are giving themselves all power to sell the property in the future, mortgage the property and revoke the deed. This allows the current owners, known as the Life Tenants, to retain control over the property while still designating on the deed who is to inherit the property upon the death of all the Life Tenants listed on the deed. Those individuals are known as the remainder persons. The remainder persons' interest, if any, is contingent upon the death of the Life Tenants. The remainder persons have no interest in the property while the Life Tenants are alive and cannot sell or dictate the use of the property from the Life Tenants.
If you are interested in finding out more, please feel free to contact our office or speak with an attorney before making any changes to the title of your property. This information is not given as legal advice. Please contact an attorney regarding your specific situation.