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 recognized as a legal instrument. This means that property owners in South Carolina cannot use a Lady Bird deed to transfer property while retaining a life estate and the ability to control the property until death. South Carolina law does recognize life estate deeds, which allow a property owner to transfer a remainder interest in the property while retaining a life estate, but these do not include the enhanced features of a Lady Bird deed, such as the ability to sell or mortgage the property without the remainderman's consent. Property owners in South Carolina looking to avoid probate and address estate planning concerns may need to consider other tools such as trusts, joint tenancies with rights of survivorship, or traditional life estate deeds, but should consult with an attorney to explore the most suitable options for their specific circumstances.