The name “Lady Bird Deed” is derived from its alleged use by President Lyndon B. Johnson to transfer property to his wife, Claudia Alta “Lady Bird” Taylor Johnson. It has become a popular estate planning tool due to its benefits, including probate avoidance and the grantor’s retained control over the property during their lifetime.
Also known as an enhanced life estate deed, a Lady Bird Deed is a legal instrument used to transfer real property while avoiding probate. This type of deed allows the grantor to retain complete control over the property during their lifetime, including the ability to sell, mortgage, lease, or otherwise dispose of the property, while naming a default beneficiary who will receive the property upon the grantor’s death if the grantor has not exercised their power of appointment during their lifetime The Lady Bird Deed is structured such that the grantor is also the grantee, creating a general power of appointment. This means the grantor can manage the property as they see fit during their lifetime, and upon their death, the property automatically transfers to the named beneficiary without going through probate. This deed can be executed as either a quitclaim or warranty deed.