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WHAT IS A LADY BIRD DEED?
By James E.
De Martino, NJ Lawyer
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Takes its name from
Lady Bird Johnson, whose husband, President Lyndon Johnson utilized it as
an asset preservation strategy.
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Allows you to
transfer the home to someone else, (usually your children), while retaining the
legal right to sell or otherwise dispose of it during your lifetime.
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If you never sell
or dispose of the property during your lifetime, then title passes
automatically to your children by operation of law. This occurs
more quickly and
expeditiously–regardless of what is written in your Will.
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Because you retain
the right to sell or dispose of the house, or change your mind, the Lady
Bird Deed is not considered as being an unacceptable transfer under the
Medicaid 5-yr. lookback rule.
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