A Lady Bird deed is a deed that allows a real property owner to transfer ownership of the property to another person or entity while continuing to use and control the property.
In some states a Lady Bird deed may be used as an estate planning tool, allowing the owner to make a lifetime gift of the property; avoid federal gift taxes (because it is an incomplete gift and is not final); avoid probate; qualify for Medicaid benefits; and continue to live in their private home after transferring ownership (title) of it to another person or entity.
A Lady Bird deed may also be referred to as an enhanced life estate deed, as it effectively gives the owner a life estate interest in the property while transferring ownership (title) to another person or entity.
Laws vary from state to state, but a Lady Bird deed may also allow the owner to continue to have complete control of the property, without input from the grantee under the Lady Bird deed. This may include the owner’s right to change their mind and sell or transfer the property to another person or entity, or to make changes to the property.
In Georgia, Lady Bird deeds are not recognized as a legal instrument. Georgia law does not provide for the use of enhanced life estate deeds, which means that property owners in Georgia cannot use a Lady Bird deed to transfer property while retaining a life estate and the ability to control the property until death. Instead, individuals seeking to manage their estate and the transfer of their property upon death may need to consider other estate planning tools such as wills, trusts, or traditional life estate deeds, which do not offer the same level of control as a Lady Bird deed. It's important for property owners in Georgia to consult with an attorney to explore the estate planning options that are available under state law and to create a plan that meets their specific needs and intentions.
