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 Vermont, Lady Bird deeds are not recognized under state law. Vermont does not have a statute that specifically authorizes the use of Lady Bird deeds, also known as enhanced life estate deeds. Therefore, property owners in Vermont looking to transfer property while retaining some control over it during their lifetime must explore other estate planning tools. Common alternatives include traditional life estate deeds, where the life tenant maintains the right to use the property for their lifetime but does not have the same level of control as with a Lady Bird deed, or establishing a trust to manage the property. It's important for property owners to consult with an attorney to understand the available options and to create an estate plan that aligns with their goals and complies with Vermont laws.