I believe that the safest way to go is with the trust, and not put the daughter on the deed at this time. Reason for this (and I'm not an attorney, so don't sue me if I'm wrong) is I believe that the Inheritance Tax Exemption will protect the daughter from getting taxed on the property when it passes through mom's will. The property will be passed along to her with a new initial cost basis, so any gains will be computed on the increase in value since the inheritance, not back to when mom purchased the property.
Please talk to a financial advisor about this, as it's relatively easy, but you want to dot all the i's and cross all the t's.
Best of luck!
Sean Dougherty
RE/MAX Alliance
http://www.HawaiianShirtGuy.com - Wed Sep 26 2007, 12:08