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Vermont Lady Bird Deed

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Updated August 13, 2025

A Vermont lady bird deed, or enhanced life estate deed, is a deed used by a property owner (the grantor) to reserve a life estate interest in the property while retaining ownership for the rest of their life.[1] The property remains under the control of the grantor until their death, at which time it passes immediately to the grantee.

How to File

  • Recording: The lady bird deed and Form PTT-172 (Vermont Property Transfer Tax Return) must be filed with the local Town Clerk’s office.[2]
  • Signing: The grantor must sign and acknowledge the deed before a notary.[2]
  • Margins: State law does not establish margin requirements for deeds; these are instead set by the Town Clerk’s office. A 1-inch margin at the top of the first page and 0.5 inches on the other sides of each page is generally recommended.[3]
  • Required Information: Vermont does not have a statutory form of deed, but deeds typically must include the names of the grantor and grantee, the legal property description, and the “nature of tenancy.”[4][5]
    • 1 Grantee: The nature of tenancy must be fee simple.
    • 2+ Grantees: The nature of tenancy must be one of the following:
      1. Tenants in Common: Each owner holds a separate share that can be sold or inherited independently.
      2. Joints Tenants with Rights of Survivorship: Co-owners share equal interest, and when one dies, their share passes automatically to the surviving owner(s).
      3. Tenants by the Entirety: Married spouses jointly own the entire property, and when one dies, the other automatically inherits full ownership.

Main Benefits

  • Maintain Control: The grantor retains full ownership rights and control over the property.[6]
  • Revocable: The grantor may revoke or revise the deed at any time.[7]
  • Avoids Probate: Property inherited through a lady bird deed does not have to go through the probate process.[8]
  • Preserve Homestead Exemption: If the property is considered a homestead for tax purposes, the grantor retains this benefit while living at the property.[6][9]
  • Medicaid Recovery: A lady bird deed allows the grantor to retain ownership of their home and protects the property from estate recovery.[10]
  • Estate Creditors: Because the transfer of the property is outside the estate, it cannot be attached by creditors. However, existing liens or debts attached to the property are transferred to the grantee through the lady bird deed.[11]

Sample

Download: PDF, MS Word, ODT

Sources

  1. 27 V.S.A. § 653(2)
  2. 27 V.S.A. § 341(a)
  3. 24 V.S.A. § 1154(a)
  4. “Title Examinations and Title Issues,” A Practical Guide to Residential Real Estate Transactions and Foreclosures in Vermont
  5. 27 V.S.A. § 660
  6. 27 V.S.A. § 654(a)
  7. 27 V.S.A. § 656(a)
  8. Chadwick & Spensley PLLC – What is a Vermont Enhanced Life Estate Deed?
  9. Department of Taxes – Special Situations
  10. MedicaidLongTermCare.org – Lady Bird Deeds and Protecting a Home from Medicaid Estate Recovery
  11. 27 V.S.A. § 654(c)