Ladybird Deeds in Missouri

Overview

Established by case law in Missouri. Different than a Transfer on Death Deed (TOD Deed) because it expresses a conveyance in the present tense and also reserves a Life Estate.

Sources

There are no statues specifically related to Ladybird Deeds in Missouri.
Ladybird Deeds have been recognized at Common Law by the state of Missouri.
St. Louis Cty. Nat. Bank v. Fielder, 364 Mo. 207, 211, 260 S.W.2d 483, 484 (1953)

Compliance

Although title insurance agents are permitted to draft deeds in connection with title insurance closings, the drafting of a Ladybird Deed is more likely to be considered the unauthorized practice of law to the increased complexity involved in creating a Life Estate with additional powers being reserved to the grantor. It is strongly recommended that agents refer the drafting of any such Deed to outside counsel.

Forms

There are no specific forms for the creation of a Ladybird Deed in Missouri.

Search

Ladybird Deeds are found in the county Recorder of Deeds office. They would typically be indexed the same as any other standard Deed.

Because a Ladybird Deed conveys a present vested interest, the names of both the Life Tenant and the grantees should be searched the same as any other owner in the Chain of Title.

Examination

Although there is no exact language to create a Ladybird Deed in Missouri, the following is a typical example of language used because it (1) reserves a Life Estate in the grantor and (2) reserves the power of the grantor to convey and encumber the property for the duration of the Life Estate:

"The said party of the first part hereby reserves a Life Estate in and to said property, with power to sell, rent, lease, mortgage or otherwise dispose of said property during his natural lifetime."

The grantor is free to act without the joinder of any of the grantees with regard to any power reserved in the deed including the ability to convey title and encumber the property.

Underwriting

Ladybird Deeds are considered a present conveyance of fee simple title in Missouri and not a future interest.

Recording

Ladybird Deeds are recorded at the Recorder of Deeds office for the county where the subject property is located.

Pricing

Preparation
Recording
Taxes