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 Massachusetts, Lady Bird deeds are not recognized as a legal instrument. Massachusetts law does not provide for the use of enhanced life estate deeds, which allow for the retention of control over the property until death while designating a remainder beneficiary. Instead, individuals in Massachusetts may use other estate planning tools to achieve similar goals, such as traditional life estate deeds, trusts, or joint ownership arrangements. These alternatives can help property owners manage their estate planning, potentially avoid probate, and address Medicaid planning concerns, but they do not offer the same level of control and flexibility as a Lady Bird deed. It is important for property owners in Massachusetts to consult with an attorney to explore the most suitable estate planning options available under state law.