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 Michigan, a Lady Bird deed, also known as an enhanced life estate deed, is a recognized estate planning tool that allows property owners to retain control over their property until death, while designating a beneficiary to automatically receive the property upon their passing. This type of deed enables the property owner to avoid probate, as the property directly transfers to the beneficiary without the need for court involvement. Additionally, the use of a Lady Bird deed can help in qualifying for Medicaid by not counting as a transfer that would trigger a penalty period for Medicaid eligibility. The property owner retains the right to use, sell, or mortgage the property without the beneficiary's consent and can also change the beneficiary at any time. It's important to note that because the transfer is incomplete until the owner's death, it typically does not trigger federal gift taxes.