What is a Lady Bird Deed? Can I use a Lady Bird Deed in North Carolina?

A Lady Bird Deed, also known as an enhanced life estate deed, is a specialized legal tool that allows a property owner to retain a life estate in their real estate (home) while preserving the right to sell the property and keep the proceeds during their lifetime. Upon the owner's passing (referred to as the life tenant), the property automatically transfers to the designated remainder beneficiaries—bypassing probate and typically avoiding creditor claims filed during the probate process.

Lady Bird Deeds are permitted in North Carolina and can be a valuable tool for Medicaid and long-term care planning when used under the right circumstances. However, they involve complex aspects of both estate planning and real estate law. Specific rules and conditions must be carefully considered, as every individual’s situation is unique. Lady Bird Deeds can sometimes help to protect and save your home from Medicaid Estate Recovery after your death.

If you're wondering whether a Lady Bird Deed is the right choice for you and your family, I invite you to contact me for a free estate planning consultation. We proudly serve clients throughout North Carolina and are here to help guide you through your options.