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 Colorado, Lady Bird deeds are not recognized or used as they are in some other states. Colorado law does not provide for the creation of enhanced life estate deeds, which allow the property owner to retain control over the property until death and then automatically transfer the property to a remainder beneficiary without going through probate. Instead, individuals in Colorado looking for similar estate planning tools might consider alternatives such as a revocable living trust, which can provide a mechanism for managing and transferring property upon the grantor's death without the need for probate. It's important for property owners in Colorado to consult with an attorney to explore the estate planning options that are available under state law and to determine the best method for achieving their estate planning goals.