Hi there,
When I was a brand-new lawyer, working out of a basement office, a client called and asked if I could draft a Ladybird deed.
I froze. Lady Bird Johnson? What did she have to do with deeds? (Spoiler alert: nothing!)
That moment sticks with me because estate planning and probate leave so many people in the same place, thinking, I should probably know this, but realizing no one ever taught you.
It turns out that Tennessee, where I practiced then (and still today), doesn’t allow Ladybird deeds. But more than half the states in the U.S. do permit them as a way to transfer real estate at death.
Here’s the quick version:
A deed is the legal document that proves who owns a piece of real estate and transfers that ownership when it changes hands. Once it’s recorded with the county, it’s official. A Ladybird deed, also called a transfer-on-death deed, is just a special type of deed that says: when I die, this property goes straight to my chosen person, skipping probate entirely.
Sounds simple, right? That’s why so many people are drawn to them. But the reality isn’t always so straightforward.
Minnesota is one of the states that permits Ladybird deeds, and Minnesota probate attorney,
Jen Gumbel, joins me to unpack the good, the bad, and the unexpected. We cover:
- Why they sound simple but aren’t. Marketed as a probate shortcut, Ladybird deeds can become a legal landmine if not drafted exactly right.
- The pitfalls of DIY deeds. From botched legal descriptions to missing spousal signatures, small mistakes can render the deed invalid or unenforceable.
- What happens if your beneficiary dies first. The outcome depends on state law and deed language, and it rarely works out the way families assume.
- When disaster strikes. In one Minnesota case, a home transferred by Ladybird deed burned down days after the owner’s death. Because the insurance policy was still in the deceased owner’s name, the beneficiary had no coverage, a devastating gap that probate might have prevented.
- Why trusts (and actual rules) often win: A trust doesn’t just transfer property; it creates rules. Who pays expenses, how income is divided, what happens if someone can’t contribute. Without rules, shared property often becomes a breeding ground for conflict.
