Using lady bird deeds to avoid probate on your home and protecting it from nursing home claims

John: You ever heard of a lady bird deed for people that's got a-

Attorney Tom Olsen: John, we've been doing lady bird deeds for a long, long, long, long, long time. John, we're a big believer in lady bird deeds. It's for the other listeners out there, lady bird deed is a tool to avoid probate on real estate here in the state of Florida. It might be your home, your vacant lot, your vacation home, your commercial property. It works on all forms of real estate.

We can use a lady bird deed to avoid probate even if there's a mortgage on the property. Lady bird deed if you were to sign one, John, it would state that as long as John is alive, it is his property to do with as he pleases. When John passes away, the property would automatically go to his children, no headaches, no hassles, no probate. John, does that answer your question for you?

John: Yes. I just wanted to help say something to see how people go about things. One other question, if you don't mind.

Tom: Go ahead.

John: Social security was going to take my wife up to 60, 64. Well, we're going to do it because she didn't really work a long time, but they seem like they're giving us a run-around. What do you think my best-

Tom: John, we don't do social security. I don't have any information about that or expertise in it, so I won't be able to help you with that, John, but I wish you the best of luck on it. By the way, Robert, I had a client last week called me up and say, "Tom, I called several lawyers around where I live and I asked them about lady bird deed, none of them knew what it was." It's not widely known out there, but it is a great tool. It's getting to be more and more well-known these days. Sometimes I look at a lady bird deed, I did 10, 15 years ago and think, "Man, I was way ahead of my time on this".

Attorney Robert Hidock: You are, indeed. When someone comes to my office it's one of the first things I look at because obviously, you're doing it for a state planning, avoiding probate, avoiding predators. When I'm looking at it, I'm looking at it to avoid Medicaid recovery. When I see some old ones I'll say, "Oh, I'll click on it," and oh, that was ones that we did a long time ago." People just don't understand the value of it. You and I always talk about we always charge fair prices, and it comes down to the attorney. Could somebody put the house in a trust? Yes, it could be very, very expensive, but we could do a lady bird deed for what, a third of the cost if that, and give them the same benefit.

John: Robert, I've been a lawyer for over 40 years and I could still remember as a very young lawyer the first time I heard about this lady bird deed and saw one. I think, "Wow, that's really great. Does it work?" I remember calling a elder law, or not an elder, but a real estate attorney that had been doing this for a long, long, long, long time. I said, "Look, does this work?" He goes, "Yes, it works, Tom." I'd been using it for a long time and it's a great tool for avoiding probate on real estate, and a simple tool for avoiding probate on real estate.

Robert: It is and it's the most efficient way you can do it and it is also cost effective.

John: By the way, when you do a lady bird deed, if you do a lady bird deed today and you state, when I pass away, this home automatically goes to my three kids, for example. In six months from now, you want to change your mind and leave it to just two kids, or six months from now you want to sell it or refinance it. You are going to be able to do so without your children's knowledge, signature, or consent. It's a great way to avoid probate and maintain complete control over your piece of property. Robert, tell us again what they might call you about today.

Robert: If somebody had a loved one that was in a hospital or rehab and they are trying to figure out what the next steps were. I would be the person to call. Or if they just were curious about what Medicaid is and how we can help people save money and protect it to their family. When we do Medicaid planning, Tom, my goal is to replicate that estate plan that you created for them, and so they know there is a definite plan in place, it's going to look very similar to the estate plan that you created.

They're not going to have to spend all that money for cost of care. That becomes a big thing because if you're a married couple and you're not going to qualify for Medicaid, and you're spending $12,000 a month at a facility, and then God forbid the person dies. The spouse at home has spent her entire life savings and has to live the rest of her life almost at a poverty level, so our goal is to protect--

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