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 Louisiana, the concept of a Lady Bird deed, also known as an enhanced life estate deed, is not formally recognized under state law. Louisiana's legal system is based on civil law, which differs from the common law systems in most other U.S. states where Lady Bird deeds are recognized and used. In states where Lady Bird deeds are valid, they allow property owners to retain control over their property until death, at which point the property passes to a designated remainderman without going through probate. However, because Louisiana does not recognize Lady Bird deeds, individuals seeking to manage their estate and avoid probate in Louisiana may need to explore alternative estate planning tools, such as a revocable living trust or other forms of property transfer that are compliant with Louisiana's civil law system. It is advisable for property owners in Louisiana to consult with an attorney to understand the available options for estate planning and the transfer of property in accordance with state laws.