Is A Ladybird Deed A Good Idea For Us?

Is A Ladybird Deed A Good Idea For Us?
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[@gauseb]

"You'll miss out on bingo night" 😂😂

[@Ronny423]

You know, I enjoy Dave but his answer regarding the ladybird deed made me cringe. A ladybird deed in Michigan is not a life estate. Under a ladybird deed the owners retain full control during their life including the ability to mortgage or sell the property (called "fee simple"), and at the death of the owners the named beneficiaries become the new owners. Compare to a life estate where a person gets a right to use the property for their life but not the right to sell or mortgage, and at death it must go to the designated beneficiaries. In other words a ladybird deed is a glorified beneficiary designation (owner keeps control but at death it goes to the beneficiary). I suspect the caller was familiar with this and was looking for a "poor man's" estate plan to transfer real estate to her children without involving probate. But Dave steered her back to using a last will and therefore probate. In addition, the caller was probably also aware that a ladybird deed avoids Medicaid estate recovery. And no that's not fraud, that's operating within the law which contemplates situations involving spend downs and ladybird deeds. There may be a moral argument to be made about spending down assets and using ladybird deeds to become Medicaid eligible, but that's another issue and Dave should have been clear about that (note: spending down can result in a person becoming ineligible for Medicaid which is why planning is necessary if you go down this road). The caller would be well served to speak with an attorney.

[@TheKevinhuston]

Dave Ramsey is wrong on so many issues: 1) A ladybird deed is not the same as a life estate deed. 2) It is not Medicaid fraud to transfer assets for Medicaid planning, such as gifting five years in advance of applying for Medicaid. 3) The vast majority of nursing homes accept Medicaid, so qualifying for Medicaid can give you the same care of someone private paying. They are not "wellfare nursing homes." They are private facilities that take private pay residents, and also accept Medicare and Medicaid. People who are buying his long term care insurance will likely end up in the same nursing homes as those people who plan ahead to get Medicaid to pay for it. And good luck finding and paying for a LTC policy that will cover as much as Medicaid would cover. I have had clients with LTC insurance go into a nursing home, and it was still beneficial to do Medicaid planning based on how much they would have to pay over and above what the LTC insurance will pay. Don't take legal advice from Dave Ramsey.

[@joemorse257]

I dont think dave really knows what a ladybird deed is

[@rusty358]

A lady bird deed allows the transfer of house deed to heirs without probate - a simple process.

[@christhesoftwareguy5672]

I watched Dave when I was heavily indebted and now I am an everyday millionaire trying to protect my wealth.

[@fuse911]

Nice. Respect. Can’t wait to get where you are

[@bellmattwebb]

My step brother is waiting for my mom and his dad to die. It's really sad. He's broke and won't get a job. I hope.that they live to 100.

[@williamperez9827]

Wow ... terrible advice. Children will have to probate wth a will. No probate with a lady bird deed. Hope she gets better advice.

[@g4l430]

@williamperez9827: RE: "Wow... terrible advice...". Just got back from the Law office today and learned that in Florida, not only will a "Will" end up going through probate but there is a probate tax. I think she said 3 to 4% of market value. You are correct! No probate with a lady bird deed.

[@tamb7587]

Agreed! Terrible advice! He’s not an elder law or estate planner. He acts all cocky like he’s the authority on this one and he’s NOT .. Like a lot of his advice but he needs to stay in his lane on this one!!

[@sungee3333]

Question to you. The house doesn’t go through probate but wouldn’t the will go to probate?

[@truthseeker6370]

My father in law was a well-off, frugal, retired scientist... who ended up in a Medicaid nursing home due to dementia. And no there was no welfare fraud.

[@damienmartinez1376]

Correct. When they have dementia and need 24 hr care at 10k a month. For 5-10 years.

[@henry-bo3np]

Dave Ramsey, the advice you give in this video about Medicaid law and planning is not correct 😕 This couple would do well to get a second opinion from a knowledgeable lawyer.

[@henry-bo3np]

@@genxx2724, of course it isn't. So not sure what Dave Ramsey is talking about in this video.

[@henry-bo3np]

@@genxx2724 I don't care much what Dave is morally opposed to. I am a lawyer. I care about the law. If the disabled spouse enters a nursing home and the well spouse continues to live in the house, then for Medicaid eligibility purposes the house is 100% exempt. So in that event, NO, the state will NOT seize the house. Wow, does this caller need to confer with a knowledgeable attorney!

[@henry-bo3np]

@@genxx2724, I understand your concern, but that is not correct. If the community spouse lives in the house, the house is fully exempt, and the State does not put a lien on it.

[@rajbeekie7124]

Saying getting long term care is easy. Buying it is expensive like heck.

[@genxx2724]

The policies are imploding. The premiums on mine doubled and are doubling again. They’re trying to get people who paid premiums for over 20 years to cancel or agree to reduce coverage. It’s in a class action lawsuit. I may get all my premiums back. That’s money that would have grown if I’d invested it instead.

[@rajbeekie7124]

@@genxx2724 Sorry you will lose out on the gains over the years. At least, you now know they aren't going to be there when you really need them.

[@deerrudy]

I love Dave and I typically agree with him but You don't necessarily have to go into a Medicare nursing home. Medicare also provides Nursing Care at home and there's other Medicare Services you may be entitled to and it's a little bit more complex than he is describing

[@ericharrison6418]

It’s still amazing how people assume a will is enough.

[@raindancer3330]

I was told by the nursing home administrator he always advised everyone no matter how wealthy they were to hire a Medicaid attorney. I didn't want my son to lose the house dad left him.

[@stevencole7331]

It was $2500 a month for my mom on hospice . This just provided some care people and nurses to come in during the day . Nurses did medical procedures and care people cleaned her up . My family spent the majority of the time keeping her comfortable. She had 50 grand .she had long term care but that was only for nursing home not in home care and something to watch out for when getting insurance . My mom's funds could have lasted for a couple years at that rate but she passed in a month. Mostly I believe from not eating and drinking fluids . I recommend researching hospice and how it works . Once it reaches a certain point medicare does cover some of it as far as the nurses and medication . $5000 a month is a cheap nursing home . So that's 60 grand a year . Technically selling your house for 300 grand could get you 5 years if it's paid off . That's my plan if that is nessaarry. As far as the house my state allows transfer of death deeds which I did for my house which allows my property to be transferred to my beneficiaries upon my death . They have no ownership while I am alive and I can revoke it at anytime. It also has a step up bases meaning my beneficiaries will not have any capital gains tax selling my house after I pass . I also did payment on death for my financial accounts . I got a will but these supersede that and there will be no need for probate . No need for lawyers and judges deciding what will happen and the year or more to settle . Yes you can accomplish through a trust but that's only needed if you have a more complicated inheritance and want to spend the money to create a trust . For my kids they will get checks from the bank and go down to the county and file for a deed in their name . Of course they will both own the property and work together to sell . My mom and my brother passing taught me to take care of end of life . You don't want your loved ones picking up the pieces that a little preparation could accomplish . For the wife her revenue can be greatly reduced as spouses payment are reduced dramatically . Life insurance on the husband maybe better idea than long term care

[@djpuplex]

I've worked in both hospice and long term care, and yes dying and or being in failing health before dying is very expensive in the US. 2/5 of of bankruptcies involve medical bills and health related issues. I think the Long term care insurance is gonna be expensive and have a bunch of loop holes and hidden costs. Don't get old is my best advice to anyone.

[@stevencole7331]

@@djpuplex I think the key is don't hang around in poor health . My mom at 90 had relatively decent health until age caught up with her but like I said she went quick . A bit of suffering but she was a tough gal . I give you hospice people all the kudos in the world . It's not an easy job and you do it well . Hospice is a very good program dealing with the person dieing but also helping the immediate family and friends . I think another thing that should be part of end of life plan is don't resuscitate. As you know the chances of coming back from the dead as you were is negligible and if you do the care like you said will bankrupt many and quality of life can be poor at best . Insurance is a role of the dice . Their goal is to make profits . Not to pay claims if they can help it . Budget plans are useless . My mom paid 30 years for long term care and you might as well took that money and burned in the fire place .

[@genxx2724]

@@stevencole7331 Did LTC insurance refuse to pay for her needs, or did she not need it because she qualified for hospice?

[@stevencole7331]

@@genxx2724 Nope they said they would only pay if she was in a nursing home . Home care was not included . It probably wasn't a great policy as she could not afford something better . I think she expected to go to a nursing home eventually but we did not want her to go to one and better to pass in a familiar place . Plus COVID was surging at the time

[@rongrey2110]

A will would cause the house to go into probate, then capital gains tax will be in place.

[@yalahamike]

Horrible explanation of what a Lady Bird deed is. Not at all what DR says it is.

[@annbarrante]

I need to do this

[@nchinth]

dave totally missed the "bingo night" comment

[@theirmom4723]

Texas allows you to keep your homestead and be on Medicaid. However, the state will take your home when both owners die as a State Medicaid recoup....so...keep your state medicaid and elder care rules in mind.

[@bobbert1945]

There are a lot of great nursing homes that accept Medicaid.

[@genxx2724]

There’s no such thing as a welfare nursing home. I think there are very few nursing homes that don’t accept Medicaid. Why? Because there are very few people who are able to pay for it themselves. People only need nursing home care for a couple of years on average because they are killed by sloppy care and neglect. The places are cash cows and have only the minimum staffing required by the state. The only staff they have is those who can’t get a better job. 😢

[@henry-bo3np]

Agree, there is no such thing as a "welfare nursing home." Here in wealthy state Maryland, 99.9% of nursing homes contract with the Medicaid program, because they cannot financially survive without doing that. So basically every nursing home is a Medicaid-approved facility. This is a terrible video. Dave Ramsey apparently does not know anything about Medicaid law and planning 😕 This couple would do well to get a second opinion from a knowledgeable lawyer.

[@matthewgardner2144]

I bet this caller confuses SSI and SSA and tax refund vs. tax return.

[@mannyjeanpierre4062]

At what age should ppl start getting long term care insurance?

[@jime19911]

Did you not watch the video? He said at age 60

[@genxx2724]

@@jime19911 Right when the premiums jump. Lol

[@ElainesDomain]

Dave and the bobble head.

[@saulgoodman2018]

A ladybird deed and a life estate are 2 different things.

[@alinatamashevich3354]

Please explain it, our resident legal expert. I have a C note you can't.

[@saulgoodman2018]

@@alinatamashevich3354 Learn to use Google.

[@dfarmer_]

@@saulgoodman2018 According to Google, a ladybird deed is an "Enhanced Life Estate"

[@saulgoodman2018]

@@dfarmer_ But you still 100 percent own the property. Which Dave is saying that you don't have full control over it.

[@Anikoko2027]

Thanks Dave Ramsey for the greats advice, everyday I'm winning

[@selena-mi6xr]

How possible?

[@Anikoko2027]

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[@selena-mi6xr]

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[@Anikoko2027]

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[@Freekygrandma]

I can’t believe people are still listening to this guy. He is so dead wrong on how a Ladybird deed works. Glad I don’t take his advice on anything.

[@harrisonwintergreen1147]

Hi Dave, need your advice on welfare fraud

[@ClaxtonBay123]

Call the show or send an email.

[@DaveCompton5150]

Don't do it! 🤣

[@lynette8918]

Welfare nursing home?? Wow. I feel sorry for people who take your advice because you don’t know wth you’re talking about

[@djpuplex]

100% she only gets insurance on him. Thu are in there sixties with less than $800k yikes.

[@TheMechanicj]

Bingo think about it 2 people’s lives is only worth 800k how that’s saving saving 20000$ per year if you made 0% interest

[@genxx2724]

They prioritized raising kids properly over money and things, and she stayed home.

[@djpuplex]

@@genxx2724 Plenty of stay at home moms work on the side.

[@TheMechanicj]

@@genxx2724 probably spend 1 million on cars and vacations over the years

[@erindowling8540]

What horrible and very wrong advice! A Lady Bird Deed is not a life estate. It is an "Enhanced" life estate and a wonderful way to keep control of your home while you're alive and to protect your kids from going thru probate, saving them time and money. Also has some creditor protections.

[@ChadCandiceMorton]

VERSE OF THE DAY: Now repent of your sins and turn to God, so that your sins may be wiped away. ~Acts 3:19

[@matthewgardner2144]

Oh god.

[@sandracrandall4561]

@@matthewgardner2144 He heard U so keep talking...He's really there

[@saulgoodman2018]

What's wrong with a nursing home, or welfare? If you need it, than so be it.

[@alinatamashevich3354]

What is wrong with you eating dog food? Then so be it.

[@jgbotwinick49]

If you can avoid it, then you should.

[@saulgoodman2018]

@@jgbotwinick49 Not everyone can.

[@jgbotwinick49]

@@saulgoodman2018 Nobody said otherwise.

[@saulgoodman2018]

@@jgbotwinick49 Dave just did. Did you not watch the video?

[@marnitagriffin9440]

my dad die and left me a lady bird deed but his wife is on the deed

[@446hemi]

he is totally wrong...what an asshole NOT everyone can self pay...I would NOT do ant business with him...BAD advice!!!!!