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 West Virginia, Lady Bird deeds are not explicitly recognized by state statutes or case law. Unlike some other states, West Virginia does not have specific provisions that allow for the creation of enhanced life estate deeds, which are commonly known as Lady Bird deeds. These deeds allow the property owner to retain control over the property during their lifetime, including the right to sell or mortgage the property, and upon their death, the property automatically transfers to the designated remainder beneficiaries without going through probate. Since West Virginia law does not provide for Lady Bird deeds, individuals seeking to avoid probate and plan their estate in West Virginia may need to consider alternative methods such as traditional life estates, revocable living trusts, or joint tenancy with the right of survivorship. It is advisable for property owners to consult with an attorney to explore the most suitable estate planning options according to West Virginia law and their specific circumstances.