Many Washington homeowners think adding a child to the deed is a simple way to avoid probate, make inheritance easier, or “keep the house in the family.” On paper, it may seem easy: prepare a deed, sign it, record it, and your child is now on title.

But adding a child to your deed can create serious legal, tax, estate planning, creditor, mortgage, and family problems. Once your child becomes a co-owner, the transfer may be difficult to undo without their cooperation. What feels like a simple property transfer today can become a complicated title issue years later.

If you own a home in Washington State and want to protect it, avoid probate, plan for your family, or organize your assets, you may be wondering whether you should transfer your home to an LLC or a living trust.

Both options can be useful, but they serve different purposes. An LLC is usually used for business, rental, or investment property planning. A living trust is usually used for estate planning, probate avoidance, and incapacity planning. Using the wrong structure can create tax issues, mortgage problems, title complications, or estate planning mistakes.

If you own real estate in Washington State and want to avoid probate, you may be comparing two common estate planning tools: a Transfer on Death Deed and a Living Trust.

Both can help transfer property after death, but they work very differently. A Transfer on Death Deed, also called a TOD deed, names a beneficiary to receive a specific piece of real estate after the owner dies. A Living Trust is a broader estate planning tool that can hold real estate, bank accounts, investments, business interests, and other assets.

Trusts are a popular and powerful tool for estate planning, allowing individuals to control the distribution of their assets after their death. There are many different types of trusts available, each with their own unique features and benefits. In this blog post, we will explore some of the most common types of trusts used in estate planning.

1. Revocable Living Trusts: A Revocable Living Trust is a trust that can be amended or revoked by the grantor (the person who creates the trust) during their lifetime. This type of trust is often used to avoid probate, as the assets placed in the trust are not considered part of the grantor's estate upon their death. This also allows for more privacy than probate court, where records are public. Revocable living trusts also can have a "successor trustee" named who will take over managing the trust assets if the grantor becomes incapacitated before death.

Women Leaders International Networking (WLIN), based in Seattle, WA, is a connective group of entrepreneurial women building strong values and work ethic within our community. By promoting entrepreneurship and sharing insightful personal development tools and perspectives, WLIN is committed to helping underprivileged women of all backgrounds grow and prosper.

Financial education, such as understanding Estate Planning and it's benefits to each person, is an essential part of their agenda. Theresa Nguyen J.D. LL.M. and Eric Reutter J.D. LL.M. were invited to a luncheon to help explain and bridge the gap between the allure of Estate Planning and it's actual economical impact on an individual or family.