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 New Mexico, the concept of a Lady Bird deed, also known as an enhanced life estate deed, is not recognized under state law. Unlike some other states, New Mexico does not have statutes that specifically allow for this type of deed. Therefore, property owners in New Mexico looking to transfer property while retaining some control over it during their lifetime must explore other estate planning tools. These might include traditional life estate deeds, trusts, or other legal mechanisms that can help achieve similar goals, such as avoiding probate or planning for Medicaid eligibility. It is important for property owners to consult with an attorney to understand the available options and to create an estate plan that complies with New Mexico laws and effectively meets their specific needs.