Lady Bird deed is similar to a Life Estate deed, with some differences. The main concern is that the house is "inherited" and therefore of no tax consequence for you on your federal return. (SOME states are now taxing inheritances)
Moving forward, you should get an appraisal done to determine the value of the home on the date of the original owner's death. This is your basis (or cost) which will be needed when you decide to sell the property.
Your capital gain will be determined using your basis when you sell.
You would also need to know this basis if you ever decide to use this second home as rental property.
@emfurtney
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