How to File
- Recording: Must be conducted at a Registry of Deeds office.[3]
- Signing: Must be in blue or black ink and acknowledged by a notary public.[4]
- Margins: 2.5 inches from the top of the first page and 0.5 inches from all sides on subsequent pages.[5]
- Required Information:[3]
- Preparer’s Name & Address: The person or business who drafted the deed.
- Grantor’s Name (current owner): This must also be printed under their signature.
- Grantee Beneciary’s Name & Address: The person who will be inheriting the property.
- Social Security Number (SSN): If social security numbers are included to identify the parties, do not include more than four sequential numbers.
Main Benefits
- Maintain Control: An owner retains the right to sell, lease, or finance the property while living on it.[6]
- Revocable: Includes the right to amend or revoke the deed during the owner’s lifetime.[7]
- Avoids Probate: Qualifies as a non-probate transfer.[8][9]
- Preserve Residence Exemption: If the property is a homestead, it remains an unaccountable asset.[10]
- Medicaid Recovery: Lady bird deeds are approved by the Michigan Dept. of Health & Human Services (which oversees Medicaid) to preserve the owner’s property while allowing it to pass to their heirs without estate recovery.[10]
- Estate Creditors: The transfer of property is outside the creditors of the estate.[10] However, any liens or mortgages on the property (directly) will remain the debts of the new owner (after the grantor’s death).[11]
Sample
Sources
- Michigan PRE Guidelines – Updated 2022 (Page 10)
- Michigan BAR: Ladybird deeds: Key features and uses
- MCL Section 565.201(1)
- MCL Section 565.201(1)(c)
- MCL Section 565.201(1)(i)
- Estate of Gloria Jean Taulbee v. Amy Lynn Taulbee (2024)
- In re Conservatorship of Barbara A. Greer (2023)
- MCL Section 700.6101(1)
- BPG Glossary (Page 38)
- Michigan BAR: Ladybird Deeds – Purposes and Usefulness
- Thompson Legal – What Happens to Your Mortgage in Michigan When You Pass Away?