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 Mexico, the concept of a Lady Bird deed, also known as an enhanced life estate deed, is not explicitly recognized by state statutes. New Mexico law does recognize the traditional life estate deed, where a property owner can transfer their property while retaining the right to use it during their lifetime. However, unlike the Lady Bird deed, with a traditional life estate, the life tenant (original owner) would not have the same level of control over the property and cannot unilaterally change the beneficiary after the deed is executed without the consent of the remainderman (the person who will receive the property after the life tenant's death). Since Lady Bird deeds are not statutorily recognized in New Mexico, they may not provide the same benefits as they do in states where they are explicitly allowed, such as avoiding probate, retaining Medicaid eligibility, or avoiding federal gift taxes. Individuals interested in alternative estate planning tools that offer similar benefits should consult with an attorney to explore other legal options that are valid and effective under New Mexico law.