An estate plan is simply the plan someone makes for the management of their affairs if they become incapacitated and the plan for administering their estate after they die.

An estate plan is the plan a person makes for the management of their finances and health care in the event they become incapacitated, and the plan for the administration of the person’s estate after they die. Under Washington law, a person typically uses an estate plan to accomplish these goals:

* control how the person’s property will be distributed upon their death;

* avoid uncertainties in the administration of probate proceedings;

* avoid or minimize estate tax liability;

* arrange for the care of the person’s minor children and other dependents upon the person’s death;

* appoint others to manage the person’s financial and medical matters if they unable to do so, either because of age, illness, or injury; and

* choose whether life-sustaining treatment should be continued if the person is ever in a terminal or permanent unconscious condition without any reasonable probability of recovering.

Estate plans accomplish these goals using a variety of legal devices, such as Wills, Trusts, Powers of Attorney, and Health Care Directives, together with beneficiary designations and ownership interests of non-probate assets. Every person’s unique needs and goals must be considered when deciding which devices to use for the person’s estate plan.

A basic estate plan includes legal documents which, together with proper non-probate asset beneficiary designations, are likely to address the estate planning needs of a lot of people. The term “basic estate plan” is not a clearly defined term in the legal industry. We use the term “basic estate plan” to mean an estate plan made up of some or all of the following documents: a simple Will, a Durable Power of Attorney for financial matters, a Health Care Power of Attorney, and a Directive to Physicians (commonly called a "Living Will").

More complex estate plans can include Wills with Trusts for children and grandchildren; Wills with sophisticated tax planning for larger estates that use Marital Deduction Trusts, Qualified Terminable Interest Property (QTIP) Trusts, Bypass Trusts, and Applicable Credit Amount Shelter Trusts; Revocable Living Trusts, Qualified Personal Residence Trusts; Irrevocable Life Insurance Trusts; Charitable Remainder Trusts; Grantor Retained Interest Trusts; Dynasty Trusts; and Family Limited Partnerships.

If you have estate planning questions, give us a call at 253.858.5434 to set up an appointment today. We represent clients throughout Washington and Idaho and are available to meet in person, by phone, or via video conference.