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.