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 Arkansas, Lady Bird deeds are not recognized under state law. Arkansas does not have specific statutes authorizing the use of enhanced life estate deeds, which are commonly known as Lady Bird deeds in some other states. These deeds allow property owners to retain control over their property until death, including the right to sell or mortgage the property, and upon death, the property automatically transfers to a designated remainderman without the need for probate. Since Arkansas law does not provide for Lady Bird deeds, individuals seeking to avoid probate and address estate planning concerns may need to consider alternative methods such as traditional life estate deeds with retained powers, trusts, or other estate planning tools. It is important for property owners in Arkansas to consult with an attorney to explore the legal options available for estate planning and the transfer of real property in accordance with state laws.