Deeds, Trusts, and Not Losing Your Home to the State

When it comes to estate planning, one of the top concerns clients express is protecting their real estate. Whether it’s a home, vacation property, or rental investment, real estate is often the most valuable asset people own — and they want to ensure it’s preserved for future generations. 

In this week’s episode of the Elder Law Report Podcast, Attorneys Jane Dearwester and Jordan McIntyre shared practical strategies for safeguarding real estate as part of a comprehensive estate plan. 

One of the most effective and popular opinions in North Carolina is the Lady Bird Deed, also known as an Enhanced Life Estate Deed. This legal document allows the property owner to:

• Maintain full control of the property during their lifetime. 
• Sell, rent, or refinance the property without permission for future beneficiaries. 
• Avoid probate entirely by automatically transferring the property to the named beneficiary upon death. 

“It’s an incredibly useful tool,” Jordan McIntyre explained. “You stay in control while ensuring the home passes directly to your chosen heirs, and you can still qualify for benefits like long-term care Medicaid.”

Jane Dearwester added that Lady Bird Deeds aren’t commonly used in real estate closings, so it’s essential to speak with an estate planning attorney to explore this option. 

Trusts offer another versatile strategy, especially for those who: 

• Own multiple properties in different states. 
• Want to avoid probate and court involvement. 
• Are planning for the care of minor children or vulnerable family members. 

“Trusts allow for long-term planning and provide extra protection and control,” said Jane. “I personally used a trust in my own estate plan to protect my home for my minor son.”

Trusts can hold primary residences, vacation home, and even investment properties. For landlords, trusts can be combined with Limited Liability Companies (LLCs) to shield property from liability and streamline management.