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 Minnesota, Lady Bird deeds are not recognized as a legal instrument. Minnesota law does not provide for the use of enhanced life estate deeds, which allow property owners to retain control over their property until death and then automatically transfer it to a designated beneficiary without going through probate. Instead, individuals in Minnesota may use other estate planning tools to achieve similar goals, such as a Transfer on Death Deed (TODD). A TODD allows property owners to name beneficiaries who will receive the property upon the owner's death without the need for probate. However, unlike a Lady Bird deed, once a TODD is executed and recorded, the owner cannot sell or mortgage the property without the beneficiary's consent. It's important for property owners to consult with an attorney to understand the available options and to ensure that their estate planning aligns with Minnesota laws and their personal objectives.