If you have a significant unpaid mortgage or lien on the property, or if you want to pass the house to multiple people, a Lady Bird deed could lead to complications. This is especially true if the potential beneficiaries do not get along and cannot cooperate to sell the property after your passing.
In such cases, a trust might be a better choice than a Lady Bird deed, as it offers more flexibility in selling the property.
Untimely Beneficiary Deaths
Lady Bird deeds do not account for beneficiaries’ descendants who might pass away before you. A living trust enables you to appoint a successor trustee and a backup beneficiary. If the backup beneficiary is a close relative, it might also help reduce property taxes.
