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 valid legal instrument. New York estate planning and real estate laws do not provide for the creation of enhanced life estate deeds, which allow for the retention of control over the property until death while designating a remainder beneficiary. Instead, individuals in New York looking to manage their estate may consider other tools such as wills, trusts, joint tenancies, or life estates with traditional remainder interests. These alternatives can help achieve similar goals, such as avoiding probate or managing the transfer of property, but they do not offer the same level of control and flexibility as a Lady Bird deed. It is important for property owners in New York to consult with an attorney to explore the estate planning options that are available under state law and to create a plan that aligns with their specific needs and intentions.