Creditors and the Lady Bird Deed

Does a Lady Bird Deed Protect My Property from Creditors of My Beneficiaries?
Yes.  A Lady Bird Deed does not transfer ownership of the property to your beneficiaries until you pass away.  This is different from other forms of transfer like the life estate, tenancy in common or joint tenancy with right of survivorship.  While you are alive, your beneficiaries' creditors cannot attach or satisfy any claims to your property.  A Lady Bird deed even allows you to remove a beneficiary if you find out that beneficiary has a creditor or creditors who would end up taking that beneficiary's portion of your property.

In states that recognize "tenancies by the entireties," Lady Bird deeds also protect married couples who own their home as husband and wife.
© CORPUS JURIS. All rights reserved.