More on Revocable “Lady Bird” Deeds

Earlier on this blog, I discussed the enhanced life estate deed in which the holder of the life estate also retains the right to transfer the property, by sale or gift, without obtaining the consent of the owner of the remainder interest.

For an interesting comment on this technique, see Travis Robbins, California’s Revocable Deed a/k/a Enhanced Life Estate Deed, Online Lawyer Blog, Aug. 18, 2006. 

At least seven states (Arizona, Colorado, Kansas, Missouri, Nevada, New Mexico, and Ohio) have special provisions dealing with transfer on death deeds, also called beneficiary deeds.  This technique operates similar to a pay-on-death bank account, that is, the beneficiary named on the deed has no interest until the owner dies.  Like the depositor, the owner of the land may change the beneficiary designation at any time and for any (or no) reason.

Personally, I think this technique is a better option, if available in the situs state.