Greater Tacoma Community Foundation Professional Advisors Network

We are pleased to announce that the Law Offices of P. Stephen Aita, PLLC is now a member of the Greater Tacoma Community Foundation Professional Advisors Network.

The GTCF helps people support the causes that matter most to them, fostering powerful and rewarding philanthropy. It manages more than 430 charitable funds supported by thousands of Pierce County residents. It also collects expertise on local issues and connects a variety of people, organizations, and resources to foster greater community participation.

If you want charitable giving to be part of your estate plan, the GTCF can help ensure that your generosity will have an impact that extends beyond your lifetime. So grants from your gift can support the arts, protect the environment, award scholarships, feed hungry families, or support whatever charitable causes are important to you and your family - it's all up to you. Give us a call if you want more information.

"Unbundled" Legal Services

We recognize that not everyone wants or needs a complete range of legal services or full representation to manage, present, or control their legal matter, but they face a significant lack of information and training as to the law and the legal system. Smaller litigation matters and probate proceedings particularly lend themselves to "unbundled" legal services. If a client's circumstances dictate, we can provide “unbundled" legal services providing any or all of the following without formal representation: drafting, document review, coaching, estimation, advice, and information on legal matters on a “by session” basis for a flat fee.

This “unbundled” approach means that the client can seek assistance limited by the parameters established by agreement of the lawyer and client. With "unbundled" legal services, we will create the legal document or provide the legal advice for a particular aspect of the legal matter. For example, in a probate matter, a client may hire us just to prepare the initial petition and notices to get the probate opened, but the client is responsible for ensuring that the documents are filed with the court and notices provided to the heirs and creditors and for moving forward with the probate from there. Another client with a litigation matter may hire us just to draft the Summons & Complaint to start their lawsuit or assist them in propounding or responding to discovery requests or coach them in preparation for a hearing, but we do not formally appear as the "counsel of record" in their lawsuit.

Under the “unbundled” model of providing legal services, the client maintains full responsibility for his or her case. Each session with the attorney is limited to the topics agreed to in advance and is paid for at the conclusion of the session based upon the agreed flat fee. It can provide significant savings, information, assistance, control, and peace of mind to the client who wants to do his or her own legal work.

Buying or Selling a Small Business

When you buy or sell a small business, it is critical that the terms of the sale be put in writing. But small business owners can get into trouble buying or selling a business as much for what’s not in the contract as for what is. Leaving important items out of a contract, including hard and intangible assets and liabilities, can cause problems months after the sale goes through. Payment terms are... another critical aspect of a contract. When you buy or sell a business, make sure both parties know exactly what they are getting at the time of signing, as well as in the future.

If you're buying or selling a small business and what advice on preparing a your Purchase & Sale Agreement, give us a call at 253.858.5434 to make an appointment. We proudly serve clients throughout Washington and Idaho and are available to meet in person, by phone, or via Skype.

Charitable Giving as Part of Your Estate Plan

When many people sit down to think about how they want to leave their property, of course they think of their family first. But many of us also want some of our legacy to go to causes or organizations we hold dear--a school, a church, a food bank, a group that advocates on behalf of people struggling with a particular illness, etc. Americans are a generous people, supporting millions of nonprofit organizations.

Our tax system is designed to support these generous impulses, granting donors tax benefits for giving. If you itemize deductions on your income tax return, you can simply deduct the value of gifts to tax-exempt charitable organizations. There are also more complex ways to give. Charitable annuity trusts, for example, are a popular way to donate to a charity and in return receive regular payments for life; both you and the charity benefit.

If you have questions about charitable giving as part of your estate plan, give us a call at 253.858.5434 to find out how we can help. We proudly serve clients throughout Washington and Idaho and are available to meet in person, by phone, or via Skype.

Powers of Attorney for Children's Health Care

If you die and your children are left parentless, the court will appoint a guardian for them. But what happens if you become incapacitated or are otherwise unavailable to make health care decisions for your children? Washington law allows you to create a special Power of Attorney for Children's Health Care, which says that if you and the child's other parent are both incapacitated or otherwise unavailable to make health care decisions, the person you appoint in the Power of Attorney is authorized to make health care decisions for your child on your behalf.

If you have questions or would like to discuss a Power of Attorney for Children's Health Care, give us a call at 253.858.5434 to make an appointment. We are available to meet in person, by phone, or via Skype.

Seattle Meetings Next Week

Clients and Colleagues - I will be working in Seattle all day next Tuesday (Oct. 21st) and still have a couple time slots available for meetings in the afternoons. If you would like one, give us a call at 253.858.5434 to set something up.

Lawyers Helping Hungry Children Annual Luncheon

Lawyers Helping Hungry Children is holding its annual fundraising luncheon to benefit Northwest Harvest, the King County Emergency Feeding Project, the Seattle Summer Food Service Program, CARE, and the Children's Alliance on Tuesday, November 4, in Seattle. Sure, Rep. Jim McDermott will be one of the speakers, but more importantly, the other speaker will be Rauuuuuuuuuuuuuul Ibanez! If you're interested in attending the luncheon or contributing to or joining Lawyers Helping Hungry Children, give us a call for more information.

Canadian Thanksgiving

Happy Thanksgiving to our Canadian friends!

Since the U.S. and Canada are children of a common mother, our laws are pretty similar. Nonetheless, if you have a vacation house or investment property in Canada, you should consider putting that property into a trust. Give us a call at 253.858.5434 if you have questions about how we can help with that.

The Importance of Cohabitation Agreements

If you've chosen to live together over marriage, you aren't alone. However, many myths still exist about the concept of "living together." The fact remains that, unless you define your partnership through a legal contract, the law may view you as strangers in the case of a breakup or death, which can be particularly difficult when you own a house or other real estate together.

By choosing to live together, couples are foregoing certain rights and protections provided for them in a marriage. Married couples accrue legal rights, including the right to receive a property settlement and/or support in the event of divorce; file joint tax returns; receive distributions from estates free of estate tax; receive survivor's benefits from retirement plans and Social Security; obtain "family" health insurance, dental insurance, and other employment benefits; and automatically share in their partner's property in the event they die without a Will. Unmarried couples, on the other hand, generally acquire similar rights by expressly securing their benefits in cohabitation agreements. A cohabitation agreement is a contract between cohabitants which typically establishes contractually for the parties the rights and obligations that married people obtain by custom, statute, and agreement.

If you, your family, friends, neighbors, or coworkers have questions about cohabitation agreements, give us a call at 253.858.5434 to see how we can be of service.

Educational Trusts

If you want to set aside money to pay for a loved one’s education, you could set up an educational trust. An educational trust specifies that trust funds are to be used for education (however you want "education" defined, whether it's college, vocational school, full-time, part-time, online, educational travel, etc.). In the trust document, you name a trustee and beneficiaries, and also state how trust money is to be used. When the trust becomes operational, the trustee controls the trust property–and pays for the beneficiary’s education--according to the terms of the trust.

If you would like to talk about setting up an educational trust for your kids, grandkids, nieces, nephews, or others, give us a call at 253.858.5434 to find out how we can be of service. We proudly serve clients throughout Washington and Idaho and are available to meet in person, by phone, or via Skype.

Revocable Living Trusts for Out-of-State Real Estate

If you own out-of-state real estate, like a vacation home or a rental or other investment property, you should create a Revocable Living Trust and transfer that property to the Trust. Otherwise, upon your death, there will have to be a probate in every state where you owned real estate. When the property is owned by your Revocable Living Trust, there is no need for these assets to go through probate anywhere.

If you, your family, friends, co-workers, or neighbors have questions about Revocable Living Trusts, give us a call at 253.858.5434 to set up an appointment. We proudly serve clients throughout Washington and Idaho and are available to meet with clients in person, by phone, or via Skype.

Seattle Meetings Next Week

Clients and Colleagues - I will be working in Seattle all day on Tuesday (Sept. 30th) and Thursday (Oct. 2nd) and still have a couple time slots available for meetings in the afternoons both days. If you would like one, give us a call at 253.858.5434 to set something up.

Advising Clients on Forming Nonprofit Organizations

We are experienced in the formation of nonprofit organizations and obtaining tax exempt status for these organizations from the IRS. We also help these clients secure exemption from state taxes.

The Internal Revenue Code provides for about 30 different categories of tax-exempt status. The most common is section 501(c)(3), the category which includes charities (including public supported charities and private foundations), churches, religious organizations, schools, and colleges. Most of the nonprofit organizations which are our clients fall into the 501(c)(3) category.

When we advise clients on forming new 501(c)(3) organizations, we provide advice as to the option of forming the organization as a trust or nonprofit corporation and explain governance options for nonprofit corporations. We also provide insight into governance options, such as whether to provide for voting members or to have a self-perpetuating board of directors. We prepare the articles of incorporation or trust in order to ensure that it will qualify under Treasury Regulations which govern federal tax exempt status. We prepare the bylaws, as well as the various "governance documents," such as a conflict of interest policy, records retention policy, and director (or trustee) indemnification policy.

After making sure the client understands these documents and approves them, we prepare the Form 1023 which is the application to the IRS for recognition of tax-exempt status as a 501(c)(3) organization. We respond to all IRS queries in regard to the application and governing documents, which is part of the review process conducted by the IRS. After securing tax-exempt status, we continue to assist the organization in compliance with federal and state laws, as well as in the development of fund raising plans.

If you plan to form a not-for-profit organization or serve as the manager of an NPO, you understand the importance of following the complex laws and regulations required to obtain and maintain tax-exempt status. If we can be of service to you or your organization, call or e-mail us to discuss your goals and concerns.

Making Gifts as an Estate Planning Strategy

Very few Americans need to worry about federal estate tax or the gift tax. For deaths in 2014, everyone has a lifetime estate tax exemption of $5.34 million, which means you can leave or give away up to $5.34 million without owing any federal tax. Married couples can together leave up to twice that amount free of federal estate tax. (Some states, like Washington, however, impose their own estate tax on smaller estates.)

If you think your estate might owe estate tax, one way to avoid or reduce the tax bill is to give away property during your life. And even if you aren't concerned about estate tax, gifts offer other benefits--you get to see the recipients enjoy your gifts.

In 2014, you can make an unlimited number of $14,000 gifts of cash or other property (like stocks, real estate, or interests in a family business), completely tax-free. To ensure these tax savings, you need to remember that no individual recipient can receive more than $14,000 in a calendar year. The $14,000 annual tax exemption rule (called the "annual exclusion") is pretty straightforward. For example, if you give $20,000 to someone, $14,000 of it is exempt from gift tax, but you must pay gift tax on the remaining $6,000. The exclusion amount is indexed for inflation, rising in $1,000 increments as the cost of living goes up. Couples can combine their annual exclusions, meaning that they can give away $28,000 worth of property tax-free, per year, per recipient.

If you want to learn more about the gift tax exclusion and other estate planning strategies, give us a call at 253.858.5434 to see how we can help.

Estate Planning for Unmarried Couples

Not everybody wants to get married. But just like spouses, people in long-term committed relationships want to make sure that when they die, their surviving partner is taken care of. When you die without a Will, the law gives your estate to your next-of-kin, which sometimes isn't necessarily what we want to have happen. A well-drafted Will gives your estate to the person you want to share it with and directs who is to be put in charge of administering your estate, which is especially important for unmarried partners. It's even more important for unmarried couples who own property together, like a house or a business. And a well-drafted Power of Attorney and Health Care Power of Attorney will appoint the person you want to take care of you in the event you are unable to take care of yourself, either because of age, illness, or injury, which again, is especially important for unmarried couples because they aren't necessarily afforded the same rights as spouses.

If you, your family, friends, neighbors, or co-workers have estate planning questions, give us a call at 253.858.5434 to set up an appointment. We proudly serve clients throughout Washington and Idaho and are available to meet in person, by phone, or via Skype.