If you’re in a state that allows lady bird seeds, check those out, too. They’re pretty cool, and I really wish that I had known about them before my in laws set up my H as joint tenant with full rights of survivorship for their vacation cottage. It would have been a lot more beneficial for us tax wise.
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I just googled it and all I came up with was information about feeding birds. Help!
When I looked it up, Google suggested “lady bird deeds“ named so because Lyndon Johnson used that type of deed to leave property to his wife, Lady Bird.
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In our state, property taxes are capped. When a house changes hands, including when it transfers at death, the tax cap is removed. Making someone else a co-owner with survivorship keeps the tax cap, but they don’t get the step up basis if they want to sell later. The lady bird deed keeps the taxes capped and allows the survivor to get the step up basis, as well. Every situation is different, so it’s great to talk to a lawyer about your situation. Since my in laws’ lawyer didn’t suggest the lady bird deed as an option, it appears that not all lawyers know the best options. Choose lawyers wisely, and do a little research (as folks are doing here) so you can ask questions.
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I think the Lady Bird Deed option is only available in a handful of states. So…check to see if your state is one of them.
Right. Per article, Lady Bird “type of deed is available in only five states: Florida, Texas, Michigan, Vermont and West Virginia.” However I imagine similar arrangements can be crafted in other states/methods.
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Luckily, my inlaws investment albatross is in Florida. DH and my BiL will speak with FiL about a ladybird, but I am not hopeful. FiL is the kind of guy who just exits the room if estate planning comes up.
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