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 South Carolina, Lady Bird deeds are not traditionally used or recognized as a legal instrument for estate planning. South Carolina law does not specifically provide for enhanced life estate deeds, which are commonly known as Lady Bird deeds in some other states. Instead, property owners in South Carolina may use other estate planning tools to achieve similar goals, such as traditional life estate deeds, wills, or revocable living trusts. These tools can help property owners manage the transfer of their property upon death, potentially avoid probate, and address other estate planning concerns. However, unlike Lady Bird deeds, a traditional life estate deed in South Carolina would not typically allow the life tenant to retain the same level of control over the property, such as the ability to sell or mortgage the property without the consent of the remainder beneficiaries. It's important for property owners to consult with an attorney to understand the available estate planning options and to create a plan that aligns with their specific goals and needs within the legal framework of South Carolina.