A lady bird agreement is a type of revocable living trust that can be used to transfer property to someone else after you pass away. This type of trust is known for being particularly flexible and easy to modify.

The term “lady bird agreement” comes from the fact that the first use of this type of trust was by President Lyndon B. Johnson. Johnson used a lady bird agreement to transfer ownership of his ranch to his wife, Lady Bird Johnson. This trust was notably different from other types of trusts because it allowed Johnson to maintain control over the ranch while he was alive and for Lady Bird to inherit the property without probate after he passed away.

In essence, a lady bird agreement is a special type of revocable living trust. The trust is created during the lifetime of the person who makes it, and it can be modified or revoked at any time. The trust is named after the person who creates it, and it typically includes provisions that allow them to maintain control over the assets in the trust while they are alive. This means that the person who creates the trust can continue to use and enjoy the assets in the trust as if they were still in their name.

One of the key benefits of a lady bird agreement is that it can help to avoid probate. Probate is the legal process that takes place after someone passes away in order to transfer ownership of their property to their heirs. Probate can be a lengthy and expensive process, and it can tie up assets for months or even years. With a lady bird agreement, however, the property in the trust passes directly to the designated beneficiary at the time of the creator`s death. This means that the property can be transferred without the need for probate.

Another benefit of a lady bird agreement is that it can be a powerful estate planning tool. By using this type of trust, the creator can control how their assets will be distributed after they pass away. They can also use the trust to provide for their loved ones, minimize estate taxes, and protect their assets from creditors.

In conclusion, a lady bird agreement is a type of revocable living trust that can be used to transfer property to someone else after the creator passes away. This type of trust is known for being flexible and easy to modify, and it can help to avoid probate and simplify estate planning. If you are interested in creating a lady bird agreement, be sure to consult with an experienced estate planning attorney who can help you understand your options and make informed decisions about your assets.