Considerations for ladybird deed and nursing home placement for elderly relative in Texas

Question

I am considering a ladybird deed for my elderly relative, as her financial resources are low and she cannot care for herself. She is currently in a place that suggests using a ladybird deed to ensure she remains there. She has two sons: one unable to provide care due to work commitments, and the other unable to care for her as well. Is a ladybird deed the best option in this situation, or are there other alternatives we should consider to secure her placement and address potential Medicaid eligibility concerns?

James L. Arrasmith · Answer

You’re doing a thoughtful and caring thing by looking into options that protect your elderly relative while also considering Medicaid eligibility. In Texas, a Lady Bird Deed (also called an enhanced life estate deed) can be a very helpful tool. It allows your relative to retain full control of her home during her lifetime, while naming someone to automatically inherit the property upon her death—without it going through probate. 
 
One of the biggest advantages is that the home won’t count as a gift under Medicaid’s five-year look-back period, which helps preserve eligibility for long-term care benefits. It also protects the home from Medicaid estate recovery after her death, so the property can stay in the family. This could be especially important if you want to secure her housing and prevent any future financial complications for her sons. 
 
Still, a Lady Bird Deed only addresses the home. If there are other financial or care-related needs, you might also want to look into establishing a Miller Trust (Qualified Income Trust) if her income exceeds Medicaid limits. You’re asking the right questions at the right time—and by taking this step, you’re helping to give her security and peace of mind during a very vulnerable chapter of life.

Q: Considerations for ladybird deed and nursing home placement for elderly relative in Texas