What is an Enhanced Life Estate Deed?

An enhanced life estate deed, commonly known as a Lady Bird deed, is a type of legal document that is frequently utilized in long-term care Medicaid planning. Medicaid includes a provision known as the lookback rule, which means that if you transfer assets within a span of five years, it can be used against you. This rule applies to real estate as well. However, in the case of a Lady Bird deed, the individual retains ownership of the real property throughout their lifetime and designates its beneficiaries after their demise. Since the ownership remains with the individual during their lifetime, it is not considered an improper transfer or a gift in terms of Medicaid eligibility. Hence, it assists in qualifying for Medicaid. Nevertheless, it is crucial to note that these deeds should only be executed after consulting an elder law attorney to ascertain its suitability for your specific circumstances.