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 Vermont, Lady Bird deeds are not recognized as a legal instrument. Vermont law does not provide for the use of enhanced life estate deeds, which means that property owners cannot use a Lady Bird deed to transfer property while retaining control and use of it during their lifetime. Instead, Vermont residents seeking to manage their estate and property succession may need to consider other estate planning tools such as traditional life estate deeds, wills, trusts, or transfer-on-death deeds where applicable. 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 advisable for property owners in Vermont to consult with an attorney to explore the most suitable estate planning options according to Vermont law and their specific circumstances.