Advising clients regarding Trust administration - helping Trustees interpret Trust documents, understand Trustees' duties, and ensuring that Trusts are managed and distributed correctly.

Trust administration is a complex, confusing area of the law, one in which some lawyers lack the experience to practice. We will not only draft trusts, but we will also immediately help you fund the trusts with assets such as real estate, stocks, bonds and other types of personal property. We will assist trustees to manage trust property throughout the life of the trust.

After the death of the first spouse, we will help you with the next phase of trust administration—dissolving the original trust and creating two or three trusts in which to transfer property. Determining whether to create an A, B, or C trust, or a spousal, bypass, or marital trust (commonly a qualified terminable interest property or "QTIP" trust) is complex, requiring the assistance of a lawyer experienced in trust administration. Our law firm—with the assistance of appraisers and financial advisors—will advise you about what trusts to create and what property to transfer into them.

When the second spouse passes away, we will help the new trustee interpret trust documents, understand his or her duties as a trustee, and ensure that the trust is managed and dissolved correctly. We will guide you from creating the initial trust until dissolving the final trust.

If you have questions about administering a trust, give us a call at 253.858.5434 to see how we can be of service.

How can you make sure your family is taken care of if you die? The questions are many and the answers aren't easy. Avoid leaving decisions to the Court and create an estate plan.

It’s a tough thing for any parent to think about: Do you know what would happen to your kids if you were to pass away? Who would be their primary caretaker? Would they have enough money for necessities, let alone college?

The questions are numerous, and the answers aren’t easy. The topic is unpleasant, so many Americans avoid it all together, so much so that a recent survey shows that nearly 64% of Americans don’t have a Will.

Put yourself in the driver’s seat and avoid leaving decisions about your family up to the Court by creating a Will. Start with these five key questions:

WHO WILL TAKE CARE OF MY CHILDREN? This is probably one of the most important questions you will ask yourself when estate planning, and for that reason, it’s often the hardest to answer. Choosing a guardian now can give you peace of mind, knowing that if something were to happen to one or both parents, your children would be raised by a close friend or family member of your choosing. Help narrow down your choice of guardian by considering the following questions:

* Is the person physically able to care for your kids?
* Does the person live close? If not, would he or she consider relocation?
* Are this person’s finances and relationships stable?
* Will the person give your children the life you want for them?

DO I HAVE LIFE INSURANCE? Although there are many benefits of life insurance, one of the greatest benefits is that it can help ensure your children have the financial security necessary to live out their dreams. If you were no longer here to support your kids, it can provide funding to pay outstanding debt, maintain your children’s standard of living, and even pay for college.

Not all life insurance policies are created equal. A financial advisor can help you understand different types of insurance and what’s best for your unique needs. A professional can also work with you to choose a beneficiary of the life insurance—which is an especially big decision if you have minor children.

DO I HAVE A TRUST? The basic function of every estate plan is to determine who should receive what and when. Creating a legal document that spells out what you want to happen to your assets takes out unnecessary stress and confusion. If you leave children behind, a Trust can help you specify how and when to pass money and your belongings to your children.

If you think that your child’s guardian would automatically be able to use inheritance money to care for your children then you’d likely be wrong. By default, the court—not the guardian—will control the inheritance before the child reaches legal age. If you’d like to avoid any confusion as to what your children inherit and when, a Trust may be a good choice for you. Within a Trust you can decide who will manage the money and decide when the children will receive trust assets and for what purposes.

WHO WILL MANAGE ALL OF MY ASSETS? An average American family may have accumulated assets such as cars, real estate, retirement accounts, life insurance, brokerage accounts, and education funds. Making sure your assets are managed and distributed according to your wishes after you pass could prove to be difficult and time consuming. Selecting a competent and trusted Personal Representative, a person charged with carrying out your last wishes, is key. Often people choose a spouse, an older child, or a trusted friend to serve as Personal Representative and administer their estate.

WHO WILL MAKE MEDICAL AND FINANCIAL DECISIONS IF I’M SERIOUSLY INJURED? Many people think about estate planning in the context of someone dying—but it’s equally important if you’re sick or injured and can’t make decisions for yourself. Having a health care power of attorney and a durable power of attorney for finances will ensure someone can manage your care and finances if you’re not able. Although laws vary from state to state, if you’re married, your spouse would likely be legally able to make important medical decisions on your behalf. To make sure things go smoothly, you should have your lawyer draft a health care directive and powers of attorney and name your surviving spouse or trusted friend or family member as the attorney-in-fact and health care agent.

You can probably think of a million things you’d rather do than tackle the difficult questions that surround estate planning, but think about the alternative: the Court making the decisions for you. Once your plan is in place, it’s a good idea to review and update on a regular basis, especially when major life events or financial changes occur.

If you have questions about estate planning to take care of your children if something happens to you, 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 Skype or FaceTime.

In addition to legal services, our law firm provides trustee services to clients as well.

In addition to legal services, our law firm provides trustee services to clients as well. We can act as trustee, providing trustee services, making sure the provisions of a trust are carried out, and defending the interests of the trusts we serve. We offer clients a level of attention that can develop only when there is a personal connection with our clients. Because of our long-standing relationships with our clients across practice areas, we can provide advice and counsel that frequently includes practical help.

We assist beneficiaries of special needs and spendthrift trusts and try to assist these clients by paying bills, investing and disbursing funds, and protecting them from creditors and others whose interest may last only as long as the money. Our trustee services include holding and managing the assets of the trust and reporting regularly to the beneficiaries about the performance of the funds in our care. We make sure the wishes of our clients are carried out.

To protect the trust assets and provide disinterested advice, we work with experienced financial advisors, accountants, and bankers to advise our clients. These arrangements offer an unusual level of safety. However, we are also flexible, and happy to work with any custodian or investment advisor named by the client. In short, our services as a trustee are tailored to the client’s needs and desires.

Our continuity of service and a knowledge of our clients' situations are the basis of a long lasting relationship, worth much more than the management fee to the client. If you need a professional fiduciary to serve as trustee of a family trust or testamentary trust and want to know more about the services we provide, give us a call at 253.858.5434 to set up an appointment today.

How do the recent election results affect Washington business owners?

If you're a business owner in Washington (particularly in King, Pierce, or Snohomish County), you're probably wondering how this month's election results will affect you. While the election results are not yet certified, there has been quite a bit of speculation about what the preliminary results may mean for area businesses.

In this month's election, there were 12 advisory votes on the ballot allowing voters the option to maintain or repeal 2019 tax legislation. However, these results are non-binding and do not repeal these laws. The advisory votes originated from a 2007 ballot measure from initiative-filer Tim Eyman. In interviews, Eyman's stated intent with the advisory votes is to inform voters of the tax measures taken by the legislature in the last year. However, in practice they are often confusing to voters since they are non-binding and do not contain details of the underlying legislation or its impact on revenues and spending.

The bottom line for business owners in Washington is that increased taxes such as the Real Estate Excise Tax and the Service Business & Occupation surcharge to fund workforce education will still take effect January 1, 2020 - despite voters advising the legislature to repeal these measures.

Also noteworthy is that Tim Eyman's statewide Initiative 976 is projected to pass. This measure reduces the annual car tab fee to $30 by repealing cities' authority to charge car tab fees for local transportation projects and rolling back fees used by Sound Transit. In response, Gov. Inslee's office has put a hold on upcoming transportation spending due to the anticipated budget losses. This could impact contractors and real estate developers, specifically, as these transportation projects may get delayed or cancelled. However, news sources indicate there may be litigation on this issue, so the ultimate impact is still unknown.

Many new business owners wonder: Do I need a lawyer to form an LLC? The short answer is no, but the more accurate answer is maybe.

Many new business owners wonder: Do I need a lawyer to form an LLC? The short answer is no, but the long answer--more accurate and more complicated--is maybe. Simply put, forming an LLC does not require a lawyer. Most states allow business owners to form an LLC on their own.

Some lawyers offer LLC formation services as part of their professional services to small business owners, but it is not legally necessary to hire a lawyer to help you with this aspect of starting your business. However, there are a variety of circumstances in which it does make sense to hire a lawyer to help with issues related to forming or operating your LLC.

WHEN YOU NEED A LAWYER: COMPLICATED BUSINESS FORMATION ISSUES. For many small business owners, forming an LLC is the best choice of legal business entity. LLCs are simple and flexible, and they give you the ability to manage your business as a single member/owner or with additional partners. However, if you have more complex questions about which business entity is right for you, then it might be worth hiring a lawyer to consult about your options and help you make the right choice of business structure. This could be the case if you have investors who want an ownership stake in your LLC, if you want to get venture capital funding, or if you want to eventually go public with your company and issue publicly traded stock.

LAWYERS CAN HELP WRITE CONTRACTS. Contracts are one of the fundamental elements of the business world. A well-written contract can protect your legal rights and ensure that both sides of a business transaction get what they were promised: your business delivers the goods or services, and your customer delivers the cash.

There are many websites promising to offer templates for various contracts, and in some cases you might be safe enough with those. But if you want to make sure your legal rights, intellectual property, business reputation, and other aspects of making money are protected against the worst-case scenarios and liabilities, you may consider hiring a lawyer to help craft a standard contract for your business. A customized contract would be specifically tailored to your industry, target market, and frequently encountered business issues. Experienced lawyers are well-versed in the law and can draft a contract that will protect your rights while anticipating (and buttressing against) the possible ways a deal can go sour. Spending a few hundred dollars today on legal services to craft a well-written contract for your business can potentially help you save many thousands of dollars in the future.

HR ISSUES: HIRING AND MANAGING EMPLOYEES. As your business grows, you might get to the point where you’re ready to start hiring employees. Going from a single-member LLC to a larger company with full-time employees is a major step in terms of legal obligations and regulatory compliance, and this is an occasion where you will probably be better off hiring a lawyer to help you navigate the complexities. For example, when hiring employees, there are a variety of legal issues related to things like:

* Complying with state and federal labor laws
* Maintaining a safe workplace
* Paying into the unemployment insurance system
* Managing your company in a fair and equitable manner (to protect yourself from lawsuits for workplace discrimination)

If you’re going to invest thousands of dollars per year in hiring employees, you should be prepared to invest some money up front consulting with a lawyer who can advise you on how to manage your employees, create an employee handbook, comply with relevant labor laws, etc.

HIRING THE RIGHT LAWYER. Hiring lawyers for your LLC is similar to hiring other professionals: Sometimes the best way is to ask around for referrals. If you don’t know any lawyers who have the relevant experience or expertise, consider joining a local business association, or attend some lunch-and-learn seminars where local lawyers are giving presentations. You could also start by reading some relevant articles by various lawyers in legal journals, business publications, or law firm websites or social media to get a sense of their style and expertise.

Good lawyers are not cheap, but they’re often worth more than they cost. A smart, efficient, experienced lawyer can help you save a lot of money in the long run by anticipating problems before they happen, filling the gaps in your legal protections, or crafting customized solutions that fit the unique needs of your business. Don’t be afraid to call upon your lawyer to help with the various business and legal issues that might affect your LLC; it will help you stay in compliance with the law, stay in good standing with regulators, and stay ahead of the competition while protecting your rights and income from some of the worst-case scenarios of being in business.

We have been representing small businesses and their owners since 1996. If we can be of service to you, your friends, family, neighbors, or co-workers, give us call at 253.858.5434 to set up an appointment today. We present clients throughout Washington and Idaho and are available to meet in person, by phone, or via Skype or FaceTime.

Notifying creditors is one of the first things a Personal Representative of an estate should do.

Personal Representatives (PRs) of estates must notify several interested parties when someone dies. Notifying known and unknown creditors of the death is one of the first things a PR should do. Once public notice of the testator's death is published, creditors have four months to make claims for repayment against the estate.

Creditors may include lenders, credit card companies, medical facilities, legal service providers, accountants, investment advisers, or a plaintiff in a tort case against the estate. The PR may even be a creditor. Each party requires notice of death by a certain deadline.

When creditors make on-time claims against the estate, you as the PR have specific duties:

* First, you must review and scrutinize each claim for all information necessary to possibly pay the debt to the correct party and to validate the basis of the claim.
* The probate court may need to rule as to whether is claim received is an allowed claim.
* If there are enough assets in the estate to cover an allowed claim, you should pay the debt.
* If there are not enough assets to cover the claim, you must notify the creditor of the deficiency and notify the Court of the insolvency of the estate.
* At this point, you need an experienced lawyer as counsel, if you do not already have one. Certain creditors must be paid before others and some creditors not at all, depending on each circumstance.

Known creditors are those you will be able to reasonably find evidence of by looking back into the testator's (decedent's) records over the last few years. Your lawyer will send them notices directly, notifying them of the death and that the estate has been opened. Unknown creditors are those that you cannot find through reasonable means in a timely manner. This is the purpose of the public notice.

If you've been named Personal Representative of someone's estate and have questions about creditors' claims, give us a call at 253.858.5434 to see how we can help.

We provide estate planning legal services on a flat fee basis.

We provide estate planning legal services on a flat fee basis. We believe that all parties benefit from transparent information regarding costs. You’re making an estate plan so there are no surprises for your family regarding your assets after death. Certainly, the last thing you want is to be surprised at the cost of estate planning documents while you’re living!

When we talk with people who want to complete an estate plan but are procrastinating, a common concern that comes up is cost. People are concerned (and rightly so) about how much money they have to fork over for an estate plan. So, no matter what lawyer you hire to draft or update your estate plan (and you do indeed need a lawyer to have this done right) make sure they’re completely up front with you about what it will cost.

There is no such thing as a “one-size-fits-all” estate plan. Estate plans—their terms, coverage, ins and outs—depend on a myriad of individual circumstances and indeed preferences. When we meet with new clients for the first time, we’ll talk about your estate planning situation. We usually meet clients in our office in Gig Harbor, but we’ve also met folks at coffee shops, restaurants, hospitals, and their houses. (We do make house calls!) Regardless of place, we’ll walk through your estate planning questionnaire and listen carefully as you describe your intentions. we’ll answer your questions and address your concerns. Once we are both satisfied that we understand each other, we’ll give you our legal advice and recommendations. We’ll tell you in plain language what we think you need and why we think you need it. We’ll also tell you the exact cost. Because we use a flat fee approach, you’ll get a 100% reliable figure.

So, now that the cost of an estate plan has been demystified, why not take control of your future and set your family and friends up for a smooth transition of all your assets in the case of illness, incapacitation, or death? Feel free to reach out at any time by calling 253.858.5434 or emailing steve@aitalaw.com.

Social media can be an oversharer's dream, but they're a personal injury lawyer's nightmare.

Social media can be an oversharer’s dream, but they're a personal injury lawyer's nightmare. For personal injury claimants, one ill-advised status update can have a negative impact on their settlement or verdict.

Everything that’s posted on social media is considered public, and even the most well meaning remarks about a personal injury claim could potentially be used against a claimant by the defense. For this reason, we’ve assembled the following social media guidelines for clients currently involved in a personal injury claim.

(1) DO NOT DISCUSS YOUR CASE ONLINE. First off—regardless of what you plan on posting—it’s typically a good idea to ensure your personal social media accounts are set to private. This prevents outside parties from being able to easily comb through everything you publish online. However, no matter what your privacy settings, you should refrain from posting anything relating to your personal injury case. This includes meetings, doctor’s visits, and any interactions with your insurance company. Anything relating to your case is best kept off social media.

(2) DON'T POST UPDATES ON YOUR INJURIES, TREATMENTS, OR OVERALL PHYSICAL CONDITION. Despite often being the exact type of update you’d like to share with friends, publishing updates about your injuries and treatment can potentially damage your case. Updates can be taken out of context and occasionally viewed in a way that diminishes your potential settlement. As a result, publicly discussing any facet of your treatments isn’t worth the risk.

(3) DO NOT POST ANYTHING RELATING TO PHYSICAL ACTIVITIES (INCLUDING TRAVEL) WHILE YOUR CASE IS ONGOING. This should be a no brainer, but if you’re currently engaged in a claim or litigation surrounding a personal injury, posting pictures of a recent ski trip, camping trip, hike, or other strenuous activity can be hugely damaging to your case. Even if you’re dealing with chronic pain or still suffering from serious injuries, pictures of you engaging in seemingly “healthy” activities can induce skepticism and jeopardize your case.

(4) IF IN DOUBT, DON'T POST ANYTHING. You might be sensing a pattern here, but if you have the slightest inclination that a post could be damaging to your case, chances are you’re right. Erring on the side of caution is a good rule of thumb, and you’re not ever going to do harm to your case by simply staying silent online.

(5) ADVISE FRIENDS AND FAMILY MEMBERS TO EXERCISE GOOD JUDGMENT WITH THEIR POSTS. Unfortunately, not only are you responsible for your own posts, but you’re also responsible for the posts of any friends or family members who might tag you on their own social media accounts. Because of this, it’s prudent to caution them to refrain from tagging you in any posts that may have a negative impact on your case.

In some instances, if a confidential settlement is reached, it can be necessary to counsel family to adhere to the agreement and refrain from posting anything that could be considered in violation of your settlement. For a real-life example, look no further than the 2014 headline-grabbing case in Florida in which a man’s daughter cost him an $80,000 settlement after she publicly gloated on Facebook.

When it comes down to it, one careless update can have massive unintended consequences. Exercise good judgment, think before you share, and make sure you communicate the importance of wise social media usage to those around you. There’s no reason to let social media get in the way of resolving your personal injury claim.

If you've been injured in an auto collision or other incident and have questions, give us call at 253.858.5434 to see how we can help.

It's easy for nonprofits to go astray in their formation, organization, and operation - getting the advice of an experienced lawyer helps!

Nonprofit organizations often bypass much-needed legal services because they're operating on a limited budget. But it's often cheaper to avoid problems than to fix them. While many tools are available to help form a nonprofit without a lawyer, every nonprofit is unique. It's all too easy to go astray, for example by:

(1) Forming the wrong type of business. You'll need to choose between forming a nonprofit corporation or some other association or legal entity. Each has advantages and disadvantages. If you form one that turns out not to fit your organization’s activities, you'll have to spend time and money fixing this. A brief consultation with a lawyer can help determine which to choose.

(2) Failing to follow applicable laws. Nonprofit organizations must abide by both state and federal laws, the applicable portions of which can be difficult to find, combine, and interpret. For example, nonprofits are required to be transparent with how they spend their funds, and implement strict financial record-keeping systems. A lawyer who understands the complexities can guide you.

(3) Not including proper language in internal documents. Nonprofit corporations must adopt bylaws and a conflict of interest policy, using specific language, in order to receive tax exemption from the IRS and have their articles of incorporation accepted by the state where they do business.

(4) Using the wrong type of contract or policies. Let's say the board of your nonprofit decides to require each member to spend ten hours a month fundraising. If that’s not stated in the board manual, there’s no way to hold board members to that promise. While sample policies for such purposes can be found online, a lawyer is in the best position to draft or review such a policy and make sure it complies with state law.

(5) Improper filings. A lot needs to be filed when you form a nonprofit organization; for example, with the state where your nonprofit will be operating, as well as with the IRS, for tax exemption. Mistakes can extend the time it takes to form your nonprofit and get it operational.

(6) Not considering issues with nonprofit’s name and logo. You can start the research process as to whether another nonprofit is already using your chosen name or logo on your own. But if you discover that another nonprofit is using a similar name or logo, you'll probably want a lawyer to analyze whether you truly face trademark issues, so as to prevent a legal showdown and expensive rebranding.

We've been representing nonprofit organizations and churches for 23 years. If we can be of service to your organization, give us a call at 253.858.5434 to set up an appointment today.

We have been representing and advising Trustees of Revocable Living Trusts since 1996.

Many people use Revocable Living Trusts as part of their estate plan because they can save time and money on the administrative end. While this is certainly true as a general rule, trust administration is not without its pitfalls.

Since 1996, we have helped trustees with trust administration from start to finish, and can provide as much – or as little – assistance as is required by the trustee. If you are a trustee administering a trust, you may be asking yourself some of the following questions:

* Who should I notify about the trust administration?
* Should I pay expenses with trust funds?
* How do I get a tax ID number for the trust and establish a bank account?
* How do I prepare an inventory of trust assets?
* Can I give items away?
* What should I do if someone else has possession of trust property?
* Do I need to account to beneficiaries for the income, expenses, gains, and losses incurred by the trust?
* To whom should distributions be made?
* When should distributions be made?
* How do I go about closing a trust?
* What steps can I take to ensure I will have no more liability after the trust is closed?

These are just a few of the many questions that are likely to arise in the typical trust administration context. So, although trust administration is normally done without court supervision, the advice of a lawyer who is experienced in trust and estate administration is strongly recommended.

Trustees owe fiduciary duties to trust beneficiaries, and ignorance of the law is no excuse for trustee misconduct or mismanagement. Because most trusts provide for payment of attorney fees directly from trust assets, there is really no reason for a trustee to attempt to “go it alone” when attempting to navigate the complex requirements of trust administration.

If you are a trustee and are looking for guidance with a trust administration matter, give us a call today at 253.858.5434 to schedule an initial consultation. We represent clients throughout Washington and Idaho and are available to meet in person, by phone, or via Skype or FaceTime.

Estate Planning Considerations When Making Gifts to Children and Grandchildren

Many of our clients ask questions about how to make gifts to children and grandchildren, either during life or after death. There are lots of ways to do this, and a few ways NOT to do it, too. Here's the main thing to avoid: naming minor children directly as beneficiaries of retirement accounts, annuities, life insurance, or payable on death accounts. Naming a minor child directly means that unless the gift is worth less than $5,000, a guardian must be appointed by a court before that asset can be transferred to the child. A guardian is responsible for managing that asset until a child turns 18, and can also come with restrictive financial options and the requirement of annual reporting to the court. For both of these reasons, and also because it terminates at age 18, a guardianship is the least desirable way to leave money to young children. Here are some better ways to do it:

MAKE A CUSTODIAL GIFT. If you want to name a child as a beneficiary for an annuity or any account with a beneficiary designation, don't name that child directly. Instead, name that child's parent as custodian for that child to age 21, under your state's Uniform Transfers to Minors Act (UTMA): "Jane Doe, as custodian for Michelle Doe, to age 21, under the Washington Uniform Transfers to Minors Act." If you name a custodian for the minor, no guardian needs to be appointed by the court. You can choose any age between 18 and 21 for the custodianship to terminate for gifts made during your lifetime.

You can also leave money to minor children in a Will in this way, avoiding any need for a guardian or the establishment of a trust. The custodian can accept the money on behalf of the minor and open up a custodial account at a bank or brokerage company.

MAKE DIRECT PAYMENTS FOR MEDICAL OR EDUCATIONAL EXPENSES. Many people know about the $14,000 annual gift tax exclusion, which allows you to give each child or grandchild an annual gift of $14,000 free of gift tax. These annual gifts don't need to be reported on a gift tax return and do not use up any of your lifetime gift and estate tax exemption, which is currently $11.4 million per person. But fewer people know about the "ed-med" exclusion, which says that direct payments to medical providers and educational institutions for tuition are also free of gift tax, as long as these payments are made directly to the provider or the school, and not given to a child or grandchild first. Tuition can be paid for primary, secondary, preparatory school, as well as colleges and universities.

CONTRIBUTE TO A 529 PLAN. If you would like to leave money for a child or grandchild to be used for college or graduate school, making a contribution to an existing 529 College Savings Account, or opening one up for a child or grandchild, is a great way to do this. A 529 plan, named for the section of the Internal Revenue Code that governs it, is a plan operated by a state or educational institution and provides tax advantages and incentives to make it easier for families to save for college. Contributions to 529 plans are not tax-deductible, but earnings from these plans are not subject to federal income tax when the money is withdrawn as long as it is used for qualified education-related expenses, such as tuition, fees, books, and room and board. That means that the money grows on a tax-free basis and is not taxed upon withdrawal either. Even better, if the child doesn't use up the entire account, the money can be used for other related family members (such as siblings) for their qualified educational expenses as well. Each state has one 529 Plan available (most run by large financial institutions), but there's no requirement that you participate in your state's plan. Some states provide a tax incentive for state residents to use their in-state plan.

SET UP TRUSTS FOR YOUR CHILDREN OR GRANDCHILDREN. UTMA accounts must terminate by age 21 or 25 at the latest. College savings plans are for college expenses. But what if you want to provide money for a wider set of uses, such as buying a house, traveling, or getting married? And what if you want to make sure that the money you are giving to your children or grandchildren is managed for them by an adult until they are 30 or 40 years old? For more flexibility, you will need to create trusts for children or grandchildren. A custom-drafted trust can be tailored for your specific objectives and can last as long as you want it to last. Such trusts can be part of your own estate plan, distributing assets to children or grandchildren upon your death, or they can be created as irrevocable gift trusts during your lifetime, and funded with gifts of cash or others assets, financed through the purchase of life insurance, funded with gift tax-free annual gifts, or even created by making a charitable gift and naming a child or grandchild as the income beneficiary during that trust's terms.

FUNDING A ROTH IRA. Most people know they can put money annually into a Roth IRA, but few are aware that a Roth IRA is also available to minors. In fact, both traditional IRAs and Roth IRAs are available to children, as long as they have a paying job. Contributing to a child's retirement account can be an amazing gift because money invested early will have many years to grow tax-free before it needs to be withdrawn and because young adults are often not able to make retirement contributions when such contributions can be most beneficial (early) since that's also when they are starting both their careers and their families. If your child or grandchild is working weekends and summers and has income, a gift to them equal to their wages up to their annual contribution limit can be put into a Roth IRA in their name. That amount will grow and compound, tax-free, for decades.

Contributions to a traditional IRA are tax-deductible, but earnings are subject to tax upon liquidation of the account. Contributions to a Roth IRA aren’t tax-deductible, but earnings aren’t subject to tax upon liquidation. The Roth IRA is clearly the better choice for most children. Since children typically don’t earn enough to pay income tax, they don’t benefit from the tax-deductible contributions to a traditional IRA. But they will benefit enormously from not having to pay tax on earnings when they liquidate their Roth IRA after they reach the age of 59 1/2.

DON'T FORGET ABOUT THE GENERATION SKIPPING TRANSFER TAX. Any gifts to grandchildren are also potentially subject to the Generation Skipping Transfer Tax (GST). This is a tax that is equal to the maximum estate tax rate (40%) and falls on gifts that are made to anyone one or more generations below the donor. There is a GST exemption equal to the federal estate tax exemption, currently $11.4 million per person, so most gifts made to grandchildren will be exempt for most people. However, the very wealthy need to work with an experienced estate planner before making any large gifts, either outright or in trust, to maximize the use of their GST exemptions and to avoid any inadvertent triggering of such a tax.

If you or anyone you know is interested in making gifts to children or grandchildren, feel free to get in touch with our office in Gig Harbor at 253.858.5434.

Questions to Ask When Deciding to Hire a Lawyer for Your Personal Injury Claim

"When should I hire a personal injury lawyer?" is a question many people ask. After you have been injured in an accident, such as a car crash, bike or motorcycle wreck, or any other type of mishap, you may wonder if or when you should consider hiring a lawyer. Your decision should be informed by the answers to several questions.

HOW SERIOUS IS YOUR INJURY? Not all injuries will require the use of a lawyer. If your injury is minor and you have the time to work on the legal and insurance claims on your own, it is possible for you to settle your own claim. It is important, however, that you consider seeking help from a lawyer for any injury that has pain that lasts for longer than a few days and that requires medical care. If your injury necessitated hospitalization, surgery, physical therapy, rehabilitation, chiropractic work, cosmetic surgery, or orthopedics, you likely need to have your case evaluated by a lawyer. When claims involve substantial past and future medical expenses, their value can be significantly increased when you have good legal representation.

WAS YOUR INJURY CAUSED BY SOMEONE ELSE? If you believe that your injury was caused by someone else’s negligence or that the death of your loved one resulted from another’s actions, it is very important to consult with a lawyer. Proving fault involves applying certain standards to the evidence. In order to strengthen your claim, it is important to consult a lawyer as soon as possible so that the important evidence can be gathered and preserved.

IS AN INSURANCE COMPANY CONTACTING YOU? Insurance companies employ adjusters and claims representatives in order to reduce their losses. They do so by minimizing the amounts that the companies pay out in injury claims. If you are contacted by an insurance company representative who asks you for recorded statements, medical records, your story, releases, and other information, you should tell them that you are contacting a lawyer. Insurance adjusters will often try to get you to make statements that are ultimately harmful to your claim, and you should never sign releases without a lawyer’s review. The releases insurance companies frequently ask for are blanket authorizations that allow them to dig through your entire medical history. The reason they want to do this is so they can blame your injury on a pre-existing incident. This can result in your claim’s value being substantially reduced.

It is also important for you to understand that the reason adjusters contact you is because their company believes that you likely have a valid claim. They want to get the information that they need in order to help them with their goal of either minimizing your payout or denying it all together. This is true even when you are dealing with your own insurance company in a case involving an uninsured motorist. Don’t fall for their tricks and instead, consult with a lawyer.

IS THE INSURANCE COMPANY REFUSING TO PAY OR OFFERING AN UNREASONABLY LOW AMOUNT? Insurance companies will sometimes use dirty tactics to try to avoid paying the claims of injured people. These tactics may include unreasonable delays in your claims process, refusing to pay you even though liability is not in dispute, or making unreasonably low offers despite your extensive injuries. A lawyer understands these tactics. Insurance companies that engage in bad-faith negotiations may be liable to you for doing so. A lawyer may put an end to such tactics and seek the recovery that you should rightfully receive.

ARE YOU COMFORTABLE WITH THE LAW AND THE SETTLEMENT PROCESS? If you handle your own case, you will need to have a good understanding of the legal underpinnings of your claim as well as the settlement process. Receiving a fair amount in the settlement may involve savvy negotiation skills combined with knowledge of the law. Some injury cases are highly complex. For example, if you were injured by a defective product or by what you believe was medical negligence, you may need the help of experts in order to uncover the evidence that you will need to prove your claim. Auto collisions may require accident reconstruction, witness interviews, and a solid understanding of the mechanics of your injury. You’ll also need to be able to decipher your own medical records so that you can appropriately value your claim.

If you are not comfortable with doing these things, consulting with a lawyer is a good idea. A lawyer who is experienced with personal injury cases may be better-equipped to value your claim. Your case’s worth will include all of your economic and noneconomic losses. Insurance companies often do not volunteer offers that include money for noneconomic losses, such as pain and suffering, emotional distress, loss of consortium, and others, on their own. A lawyer may be able to negotiate the recovery for both your economic losses as well as your more intangible ones.

IS THE INSURANCE COMPANY DISPUTING THE LIABILITY OF ITS INSURED? Even when a collision is clearly the fault of the other party, an insurance company may try to dispute liability. Often, a company will do this to try to make people believe that they don’t have valid claims or that their claim is worth far less than it is. If liability is being disputed, it is vital that you seek help from a lawyer. A lawyer may gather the evidence that you need to prove liability so that you can either settle or head to trial.

If you, a friend, family member, neighbor, or co-worker has been injured in an auto collision or other mishap, give us a call at 253.858.5434 to see how we can help.

We've been representing artists, authors, musicians, and songwriters for over 20 years. From contract review to litigation woes, it's good for artists to know when and why to consult a lawyer.

We've been representing artists, authors, musicians, and songwriters for over 20 years. We aren't here to just help these clients out of a jam - it’s good to have us on board as a counselor or trusted advisor. From trademark dilemmas to litigation woes, it’s important for artists to know when and why to consult a lawyer.

1. CONTRACT REVIEW. There are lots of different types of contracts an artist could come across. For instance, artists and musicians need a contract when they rent out studio space. Galleries often present contracts to artists participating in their shows. Art gallery contracts have some element of commission that needs to be laid out, as well as the safety of the art that is in their possession.

Artists often need help setting up a contract template they can modify. And if something unusual occurs, it’s helpful to have a lawyer that you can call. If you didn’t have a lawyer create a contract, it’s a good idea to have them review the contract. You don’t have to have a lawyer on retainer, but it’s nice to have someone you can call who can do a quick contract review. You don’t want to be searching for a lawyer for the first time when signing a contract with a gallery, museum, recording studio, publisher, buyer, etc.

2. INSURANCE. Insurance is a big issue. Artists need to have good insurance for when their art is being transported, if there’s a business interruption, and for their studio. Artists should have commercial general liability insurance - it protects them from legal action if there’s an accident in their place of business. Insurance is honestly not that expensive. Some artists starting out think they can’t afford it, but it can be as low as $300 per year. It really saves you if you have a catastrophic event, such as someone getting hurt in the studio or if a piece of work is stolen. Lawyers can review insurance policies - just like any other sort of contract - and make sure they’re acceptable.

3. TRADEMARK AND COPYRIGHT. Artists need help doing a trademark or copyright. They need that type of advice from a lawyer or they can find themselves in litigation. People will also take artists’ art, design, songs, or photos and post them on social media channels or web pages. It’s something that you need to monitor because you need to defend trademark or copyright or you can lose the right to assert it. It can be resolved with a demand letter for payment to the person who’s using your art inappropriately or illegally. You can also send a cease and desist letter to have your work removed.

We once had an artist client who had received a call that a commercial was being filmed in a private home in the Seattle area and one of her paintings was hanging on a wall in the house. The producer of the commercial needed a licensing agreement for the client's painting to be shown in the background of the commercial - that's where we came in.

4. LITIGATION. Usually litigation surrounds someone not paying you. It doesn’t necessarily mean a lawsuit, but some artists don’t explore the alternatives. You can hire a lawyer and tell them the facts. They will spend an hour or two drafting a demand letter to the offending individual. It’s nice to have someone that you can go to because issues will arise.

5. DEFAMATION. Artists can be involved in defamation on social media. You have to be careful. Be aware anything can be posted about you and many things you post can be accessed by many people. If you have a bad transaction with a gallery, studio, or buyer, people can post about it on social media. These comments can be considered defamation. Artists can use a lawyer to draft a cease and desist letter - essentially saying stop doing what you're doing.

Don’t wait - these small measures and expenses can save you a lot of money and headaches down the road. If you or someone you know an artist, author, musician, or songwriter and needs legal advice, give us a call at 253.858.5434 to see how we can be of service. We represent clients throughout Washington and Idaho and are available to meet in person, by phone, or via Skype or FaceTime.

In most cases, probate isn't that bad. We've all heard horror stories, but really Washington and Idaho have some of the simplest probate systems in the country.

Probate is the legal process of settling the estate of someone who has died. In practice, this means that a person is appointed by the court (a “Personal Representative” or "PR") to step into the decedent’s shoes and wind up their affairs.

In most cases, probate isn't as bad as you've heard. While we’ve all heard probate "horror stories," the truth is that Washington and Idaho have some of the simplest probate systems in the country. Assuming your Will gives your PR all of the necessary powers, our system allows the PR to act with complete authority and without court intervention on nearly all matters, saving a significant amount of time and money. Furthermore, unlike some other states, attorneys fees are not based on a percentage of the value of the estate. This makes the probate procedure significantly less expensive than many other states, such as California, Florida, Hawaii, Montana, and Wyoming. Of course, there are those cases that include assets that are difficult to locate, family members that simply don’t trust each other, or heirs that contest the validity of the Will feeling that they were “cheated” out of their inheritance. In those cases, yes, probate can be a long and costly endeavor. However, that is a function of particular circumstances surrounding the family, and not an inefficiency of the probate process itself.

The length of time it takes to complete the probate process really depends on the assets and value of the estate, the work performed by the PR, the claims of creditors, and whether or not the Will is being contested. Certain timeframes may give you a better understanding of how long probate might last. For instance, creditors may submit claims for up to 4 months (if they are notified of the decedent’s death), and an estate tax return must be filed within 9 months of the decedent’s death (although this may be extended). Of course, if family members disagree, if the Will is contested, or the PR is not diligent in their duties, it takes a considerably longer time.
Who acts on behalf of the estate?

If you've been named as someone's Personal Representative, the first step is to hire a lawyer. Your lawyer is going to be your guide through this process, and you will need to feel at ease with them. The lawyer should be someone who is capable of handling the complex estate planning and tax issues that may arise during the course of settling the estate and can assist you with the implementation and funding of various trusts that need to be established. You are not required to hire the lawyer who drafted the Will and often times if the decedent had a poorly drafted document, a skilled lawyer may be able to mitigate its effects.

If you have questions about the probate process in Washington or Idaho, give us a call at 253.858.5434 to see how we can be of service.

6 Questions & Answers About Basic Estate Planning

Most people understand the necessity of having a Will. Even if you're young and just starting out, you have some assets, so it's important to have a Will. As you acquire more assets or start a family, the importance of having a Will grows.

Lawyers and financial planners recommend basic estate planning for everyone, but there are many misconceptions about how Wills and other estate planning documents work. Don't let unfamiliarity stop you from properly planning your estate. Here are some frequently asked questions—and their answers—to better acquaint you with the estate planning process.

Q: WHAT HAPPENS IF A PERSON DIES WITHOUT A WILL?

When a person dies without a Will, the person's assets are probated and distributed according to the laws of intestacy. In other words, the deceased person's assets will be distributed according to the laws of the state—not necessarily according to the deceased's wishes.

The laws of each state vary, but the money and other assets typically pass to the spouse first. For example, in Washington and Idaho (both community property states), all the property acquired during the marriage passes completely to the spouse. Any property acquired before the marriage or inherited is split between the spouse and any children.

If a person dies without a living spouse, the estate passes to the children, if any, equally. If there are no children and no spouse, then to grandchildren and other descendants. If there are no living descendants but living parents, the estate passes to the parents, and then to siblings and siblings' descendants. Generally, the state will attempt to find any living relatives and pass the estate to them.

In the event that there are absolutely no blood relatives (descendants, parents, siblings, nieces and nephews, grandparents, aunts, uncles, cousins, or any of those people's descendants), the estate "escheats" (it goes to the state).

Q: WHAT HAPPENS AFTER SOMEONE WHO HAS A WILL DIES?

The probate court supervises the distribution of the assets in accordance with the Will and the law.

Q: DOES A PERSON HAVE TO HAVE MINIMUM AMOUNT OF ASSETS TO WRITE A WILL?

No—a person can create a Will to dispose of assets worth $10 or $10 million. Of course, the distribution of those assets can have tax implications. For that reason, it is important that you understand how inheritance will be taxed as you make your estate planning decisions. You should consult a lawyer, especially for large or complicated estates.

Q: WHAT'S THE DIFFERENCE BETWEEN A WILL AND A "LIVING WILL"?

The basic difference is that a Wil is used to dispose of assets after death. A "Living Will" (technically called a Directive to Physicians or a Health Care Directive) can be used to provide health care instructions in advance, such as whether or not life support is desired.

Q: WHAT ARE THE MAIN BENEFITS OF A WILL VERSUS A REVOCABLE LIVING TRUST?

A Will's main benefit is its simplicity. Anyone over 18 and with mental capacity can write a Will. The drawback is that your family members may have to wait months or even years until your property goes through the courts and is distributed.

A Revocable Living Trust, on the other hand, can be used to transfer property and assets to beneficiaries without going through the probate process. This can save years of time and thousands in fees. Also, it keeps your estate private, whereas a Will, once probated, becomes public record.

People often use a Will and a Revocable Living Trust together. A Will can be used in conjunction with a Revocable Living Trust to name guardians for minors and express final wishes not otherwise captured in a Revocable Living Trust.

Q: HOW DO I DECIDE WHAT'S BEST FOR ME?

Your estate planning needs depend on your individual circumstances. If you're unsure what you need to protect your family, consult a lawyer. The most important thing is that you don't neglect planning your estate. It's the best way to protect your loved ones and make sure your assets are distributed according to your wishes.

If we can be of service to you, your family, friends, neighbors, or co-workers, give us a call at 253.858.5434 to set up an appointment today. We proudly represent clients throughout Washington and Idaho and are available to meet in person, by phone, or via Skype or FaceTime.