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 Oregon, the concept of a Lady Bird deed, also known as an enhanced life estate deed, is not recognized under state law. Oregon law does not provide for the creation of a deed that allows a property owner to retain control and use of the property for their lifetime while designating a beneficiary to receive the property upon their death, without the need for probate. Instead, individuals in Oregon looking to avoid probate and manage estate planning may consider other tools such as a revocable living trust or a transfer on death deed (TODD), which is recognized in Oregon. A TODD allows property owners to name a beneficiary to inherit property upon their death, but unlike a Lady Bird deed, it does not allow the owner to retain the same level of control over the property during their lifetime. It's important for property owners in Oregon to consult with an attorney to explore estate planning options that comply with state laws and effectively meet their goals.