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 North Carolina, a Lady Bird deed, also known as an enhanced life estate deed, is a legal instrument 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 does not become part of the estate but instead passes directly to the named beneficiary. The owner retains the right to use the property, sell it, or take out a mortgage against it without the consent of the beneficiary. Furthermore, because the transfer of ownership is incomplete until the death of the original owner, it typically does not trigger federal gift taxes. Lady Bird deeds can be a useful tool for estate planning and Medicaid planning, as they may help the owner qualify for Medicaid benefits by not counting as an asset. However, it's important to consult with an attorney to ensure that a Lady Bird deed is properly executed and to understand the implications it may have on taxes and eligibility for government benefits.