A concerned daughter called me recently. She said she needed a Lady Bird Deed prepared by the end of the day.
When I asked why she was in a rush, she explained that her mother was going to be applying for Medicaid the next day, and someone had told her that the Lady Bird Deed need to be signed before application was made.
A home is a non-countable asset, regardless of whether the owner has signed a Lady Bird Deed. Therefore, it is not necessary to execute the deed before applying for benefits.
Additionally, the deed can be excuted after the owner loses capacity if the owner has signed a power of attorney authorizing an agent to make such a transfer.
The following article discusses Lady Bird Deeds: What is a Lady Bird Deed?