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 Lady Bird deeds, which are also known as enhanced life estate deeds. These deeds allow property owners to retain control over their property until death, at which point the property passes to a designated beneficiary without going through probate. Since Colorado does not have statutes supporting Lady Bird deeds, individuals seeking to avoid probate and address estate planning concerns may need to consider alternative methods such as living trusts, joint tenancy, beneficiary deeds, or other estate planning tools that are recognized under Colorado law. It is advisable for property owners to consult with an attorney to explore the most suitable estate planning strategies according to Colorado regulations.