"Nothing is certain except death and taxes." So we might as well plan for both. There're nothing but benefits to estate planning and protecting the assets you've worked so hard for.

"Nothing is certain except death and taxes." That's what they say, right? So we might as well plan for both. Planning for the future doesn’t have to be a touchy subject. In fact, there are nothing but benefits to estate planning and protecting the assets you’ve worked so hard for.

Recent studies have shown that less than half of Americans have Wills. Shockingly, only about a third of adults with children under age 18 have a Will or a Revocable Living Trust. Don’t be a statistic. Protect your assets and provide for your family by planning your estate now.

WHAT IS AN ESTATE? Let’s take a step backwards and make sure we’re clear on the definition of an estate. Essentially, your estate is your total net worth in the eyes of the law.

An estate can include:

* Bank accounts

* Stocks, bonds, investment accounts, etc.

* Houses and other real estate

* Cars and other vehicles

* Life insurance

* IRAs, 401k, etc.

* Personal belongings

In short, your estate is everything you own and everything you owe.

WHAT IS ESTATE PLANNING? An estate plan is made up of several different documents. Each document serves a different purpose. Estate planning can include everything from setting up trust funds to designating your Power of Attorney. The goal of estate planning is to preserve and protect all of the assets you’ve worked hard to accumulate. Of course, the aim is also to reduce the amount paid in in taxes, legal fees, court costs, and other expenses as well. Here are the most common estate planning documents:

LAST WILL AND TESTAMENT. The most important part of your estate plan is your Will. In this document, you specify in great detail how your assets are divided, who will be the guardian of your children, and who is designated to carry out your wishes. Keep in mind, your Will is only applicable after you die. It does not offer any protection if you become physically or mentally incapacitated.

DIRECTIVE TO PHYSICIANS. If you are in a condition where you can’t make decisions for yourself, a Directive to Physicians (commonly called a "Living Will") can help protect your wishes. For example, you may become hospitalized in an unconscious state in which your abilities are severely limited. If you have strong feelings about when or when not to receive resuscitation or life-sustaining care, you would indicate them in your Directive.

POWER OF ATTORNEY. Many people choose to appoint a person to make decisions on their behalf if they become unable to make those decisions themselves, either because of age, illness, or injury. This is called Power of Attorney. Typically, you would appoint a spouse, family member, or close friend to handle your affairs when you are unable to.

There are many different types of Powers of Attorney that vary in scope, duration, and circumstances. It’s important to note that you can grant healthcare power of attorney and financial power of attorney to different individuals if you’d like. It goes without saying that you should trust your power of attorney with your life.

REVOCABLE LIVING TRUST. A Revocable Living Trust Agreement is a legal document that places your assets into a Trust during your lifetime. Upon your death, it is transferred to your designated beneficiaries. It is possible to create a Revocable Living Trust in addition to a Will.

The biggest benefit of creating a Trust is it will help you avoid the probate process. In short, a Revocable Living Trust can help protect your assets from being drained by court and legal costs. It also helps things run a lot more smoothly in general, as your beneficiaries can receive their inheritance faster and with less hassle.

WHAT YOU SHOULD KNOW ABOUT ESTATE PLANNING IN WASHINGTON.

NO WILL. If you die in Washington without a Will, the court will appoint an administrator to distribute your assets according to state succession laws. These laws give your assets to your “closest” living relatives. If you want a say in what happens to your assets upon your death — and you should! — make a Will.

PROBATE. Probate is the legal process of settling the estate of a deceased person. Fortunately, Washington has one of the simplest probate systems in the country:

* Your Personal Representative (as designated in your Will) can act with complete authority and without court intervention in nearly all matters.

* Attorney fees are not based on a percentage of the value of the estate

TAXES. Washington does not have an inheritance tax, but it does have an estate tax. That means there is no tax on the beneficiaries of an estate, but there may be a tax on the decedent’s estate itself.

There are several thresholds and exemptions and other things you should be aware of a discuss with your lawyer. In many cases, no estate tax is actually owed as a result of tax planning in the decedent’s Will. Another great reason to plan your estate!

LAW CHANGES. Federal and state tax laws are constantly changing. That’s why you should review your estate plan periodically to make sure it’s up to date.

If you have estate planning questions, give us a call at 253.858.5434 to set up an appointment today!