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 New York, Lady Bird deeds are not recognized as a legal instrument. New York estate planning and real estate laws do not provide for the creation of enhanced life estate deeds that allow for the retention of control over the property while also designating a remainder beneficiary who will receive the property upon the death of the life tenant. Instead, individuals in New York may use other estate planning tools such as wills, trusts, or traditional life estate deeds to manage the transfer of their property. A traditional life estate deed in New York allows the life tenant to use and occupy the property for their lifetime, but does not typically allow the life tenant to sell or mortgage the property without the consent of the remainderman. Those interested in transferring property while avoiding probate or planning for Medicaid eligibility should consult with an attorney to explore other legal options that comply with New York state laws.