Estate Planning for Unmarried Couples in Long-Term Committed Relationships

If you are not married to your partner, each of you should make sure to craft a thorough estate plan to provide for the other in the event of death or incapacity. Otherwise, your partner or you will not receive anything if the other dies. Your state's laws of intestate succession provide that an individual’s property is distributed among their closest relatives if they die without a Will.

Writing a will allows you to leave assets to your partner and also name a guardian for any young children. If neither parent is available to raise a child, a court will appoint a guardian. It generally will honor the choice of the parents unless this appears to be a serious mistake. In the event that your partner is not a legal parent of a child, you can name them as the guardian. (If the child’s other legal parent is still alive and available, however, their rights probably will trump your partner’s rights.)

LIVING TRUSTS. Many people choose to create a trust during their lifetime. This can replace or complement a Will. A trust contains the same assets that a Will would convey, and it allows the beneficiaries of the trust to avoid probate, which is required for a Will. Some trusts are revocable, while others are irrevocable, so you should think about whether you want to retain the ability to change your decision later. Trusts that are designed to benefit unmarried partners are no different from trusts designed for spouses, children, or other relatives.

LIVING WILLS AND DURABLE POWERS OF ATTORNEY. In the event that you become incapacitated, you likely will want your partner to have authority over financial and medical matters affecting you. A health care power of attorney and a "living will" will allow your partner to handle medical decisions and make sure that your wishes for end-of-life care are respected. Meanwhile, a financial power of attorney will give your partner control over your assets if you are incapacitated. This can allow them to keep up with a shared mortgage or other expenses without going to court for a hearing on whether you are incapacitated and whether your partner is the appropriate person to make these decisions for you.

ESTABLISHING JOINT OWNERSHIP OF ASSETS. In addition to making estate planning documents, you can adjust your ownership of certain valuable types of property to be held in a joint tenancy with a right of survivorship. Thus, your partner or you will automatically inherit these assets in their entirety when one of you dies. This is usually a simple matter of putting both names on the title document of the asset, such as the deed to a house.

BANK ACCOUNTS, INVESTMENT ACCOUNTS, AND RETIREMENT ACCOUNTS. Certain types of property cannot be transferred through your Will. This may be comforting in some ways because it means that intestate succession rules do not apply. However, you may want to make sure to designate your partner as the beneficiary of the funds in these accounts. This involves getting a beneficiary designation form from the entity in charge of the account and putting your partner’s name on the form. As with Wills, these forms can be changed at any time.

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

Notable Tax and Estate Planning Changes Under the SECURE Act of 2019

As part of the December 2019 government spending package, Congress passed the SECURE Act (which stand for "Setting Every Community Up for Retirement Enhancement"), which has some significant changes for income tax, retirement, and estate planning. As with any new tax law, the SECURE Act provides new obstacles to navigate as well as some changes that are intended to make retirement more accessible to Americans.

The most notable change under the SECURE Act is the elimination of "stretch IRAs." Under the previous law, distributions from an IRA or 401(k) plan inherited by a non-spouse beneficiary were able to be spread over the life expectancy of the beneficiary (typically 20 to 30 years). Most commonly under the old law, adult children (say in their 50s or 60s) would have been able to slowly draw down an inherited IRA account over 20 to 30 years, giving more time for earnings accumulation and tax-deferred growth in the account. Under the SECURE Act, inherited IRAs and 401(k) plan assets of a non-spouse beneficiary now must be distributed within 10-years following the death of the account holder. This rule applies to inherited non-spousal IRAs as well as Roth IRAs after January 1, 2020. If you are a beneficiary of an inherited IRA or 401(k) and the original owner passed away prior to January 1, 2020, the SECURE Act will not change those distributions.

Other notable provisions of the SECURE Act include:

* Repeals the maximum age (which was 70 ½), for being able to make Traditional IRA contributions
* Increases the age from 70 ½ to 72 for Required Minimum Distributions (RMDs)
* Allows penalty free withdrawal of up to $5,000 from a 401(k) or IRA for a "qualified birth or adoption" expenses
* Up to $10,000 can be withdrawn from 529 plans to pay off certain student loans
* Brings back the "Kiddie Tax" for tax years beginning after December 31, 2019
* Small businesses (less than 100 employees) can receive up to $5,000 in tax credit for starting a workplace retirement plan

For more information about how the SECURE Act can affect your estate plan, contact us at 253.858.5434. We're here to help!

Funding Your Revocable Living Trust

Once you’ve created a revocable living trust, there’s one more crucial step: formally transferring assets to the trust. This is called “funding the trust”—and if you don’t do it, your trust will have no effect on how your property is transferred after your death. The assets you thought would be controlled by the terms of the trust will pass instead under your Will or, if you don’t leave a Will, under state intestate succession law.

It’s very common for people to neglect the funding step altogether, or to leave out valuable assets. Many people assume, if they hired a lawyer to draft the trust document, that the lawyer will also take care of the funding. But that’s not always the case, so be sure to check with your lawyer and be clear about your responsibilities.

If an asset that you want to hold in trust has a document showing who owns it, then you’ll need a new ownership (title) document, showing that the asset is now held in trust. Common examples include:

* Real estate
* Stocks
* Bank and brokerage accounts
* Cars and other vehicles
* Copyrights and patents

So, if you want to hold your house in your living trust, you’ll need to prepare, sign, and record a new deed, showing that the property is held in your trust. If you want to transfer bank or brokerage accounts to your trust, contact the financial institution and ask that ownership be changed in its records. The institution may ask to see a copy of the trust document, as evidence that the trust actually exists.

Lots of assets, including many valuable ones, don’t have official title documents. For example, you might want to hold your jewelry or artwork in your trust, or heirlooms that have significant sentimental value. You can do that by listing the items in the trust document (commonly a list, or schedule, of property is attached to the trust document). If you want to make more of a paper trail, you can create a simple document called an Assignment of Property or "Bill of Sale." It transfers assets from you as an individual to you as trustee of your trust.

If you have questions about how revocable living trusts work and whether they would be a could option for your estate plan, give us a call at 253.858.5434 to set up an appointment today.

Representing Clients in Auto-Pedestrian Injury Cases

Going for a walk or a run can turn into a tragic life-changing event if you get hit by a car. As a pedestrian struck by a motor vehicle, you have many of the same rights as people injured in car crashes. Any time a driver’s negligence results in injuries or death to a pedestrian, the pedestrian and/or their family members are entitled to compensation for the harm.

Just like other car crash cases, pedestrians injured due to motor vehicle driver negligence are entitled to recover the cost of medical bills, lost earnings, and pain, suffering, and disability damages. In wrongful death cases, certain family members are generally entitled to damages for the loss of their loved one, as well as loss of financial support.

Usually, drivers have liability insurance, and compensation for pedestrian injuries and death is obtained through the driver’s auto insurance company. Once the extent of the damages is clear (usually when the claimant completes or is nearing the end of medical treatment), the value of a claim can be determined and the parties begin negotiating settlement. Generally there is an insurance adjuster assigned to the case early on who handles negotiations on behalf of the liability insurance company.

Adjusters are trained to downplay and minimize the extent of the harm, to try to save the insurance company money. Without an experienced lawyer, claimants are often pressured into a quick settlement compensating only a fraction of their true damages. Before accepting any settlement, we recommend that you consult with an experienced lawyer.

In pedestrian injury cases, sometimes the driver’s insurance policy is insufficient to cover the full extent of damages, and sometimes drivers have no auto insurance. In these situations, the injured pedestrian may be entitled to additional recovery under their own underinsured motorist (UIM) policy. UIM coverage comes into play when the value of a claim exceeds the value of the at-fault driver’s liability insurance policy. It is important to note that there are certain procedural rules that must be followed in asserting a UIM claim and failure to follow these rules may result in loss of coverage. An experienced lawyer will know what to do to avoid these pitfalls, as well as how to determine if any other insurance coverage is available (such as through the driver’s home owner’s insurance or umbrella coverage).

Due to the severity of harm in pedestrian injury cases, claimants often find it difficult or impossible to bear the cost of medical expenses. Just like in car crash cases, pedestrian injury cases trigger personal injury protection (PIP) coverage under the applicable auto insurance policies. PIP coverage is a no-fault benefit through auto insurance that covers medical expenses, as well as portions of an injured person’s wage loss. Since PIP is a no-fault benefit, you are entitled to coverage regardless of who was at fault for the incident.
In Washington, PIP is applied differently in pedestrian injury cases as opposed to other car crash cases. In car crash cases, those injured are normally entitled to PIP coverage under their own auto insurance policy and/or the auto insurance policy applicable to the car they are riding in—not under the other driver’s insurance policy. In contrast, pedestrians hit by cars are entitled to PIP benefits under the driver’s insurance policy. This protects pedestrians who may not have their own PIP coverage, such as those who do not own a car and thus do not have auto insurance.

In pedestrian injury cases, the driver’s PIP policy is considered primary, meaning that is the first fund used to pay for medical bills. Once the driver’s PIP is used up (or if the driver does not have PIP coverage), then the pedestrian’s own PIP kicks in as the secondary source of coverage. This is one example where you may have rights under your auto insurance policy even though you were not driving your car. If you use up the entirety of all PIP coverage under both policies, then health insurance is the final source of coverage.

If you have questions about a pedestrian/vehicle injury case, give us ac all at 253.858.5434 to set up an appointment today.

By addressing legal issues early and regularly, small business owners can ensure that their business's components are functioning as well as they can.

If you approached medical issues the way that most small business owners approach legal issues, you would do this: you would avoid regular checkups; you would get all of your medical information from WebMD; you would ignore weird pains, rashes, or other symptoms; you would attempt to set your own broken bones. Ultimately, you would address all of your medical issues on the surgeon’s table or in the emergency room.

Waiting until a legal issue turns into a dispute is like waiting for a mild medical symptom to turn into something that requires an operation. And imagine that insurance doesn’t cover the operation and the doctor won’t operate unless you pay a good portion of their bill in advance. This approach is expensive, disruptive, and potentially deadly.

Yet this is how so many small business owners approach legal issues. They avoid talking to lawyers until they need the attention of a litigator and their correspondingly high bills. That’s like solving all of your medical problems in the operating room. But, by addressing legal issues early and regularly, small business owners can actually decrease their chances of needing a litigator’s services. Not always — but often (just like we can’t always avoid needing surgery, even if we do everything right).

By seeking a lawyer's advice early on, you are actually investing in your business by ensuring that all of its components are functioning as well as they can. You are being proactive and making sure that, for instance, the brand name that you have chosen can actually get trademark protection or that your contracts actually work in your favor.

By getting the legal issues right the first time, businesses can actually put themselves in a better position to maximize other investments. They can get better terms from suppliers or partners, ensure robust brand protection, and make sure that they have chosen the right type of business entity for their venture. Finally, by having regular a relationship with a lawyer, small business owners can nip potential legal issues in the bud, when they are cheap to fix.

No matter what, all small businesses should know that legal will be part of their budget. The difference is that by hiring a business lawyer early on, and working with them as a partner as your business grows, you get to control how that money is spent, instead of waiting for a litigator to present you with a bill.

If you're a small business owner and have questions about how we can be of service, 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.

If you’ve recently gone through the turmoil of a divorce, estate planning may be the last thing on your mind. But after a divorce, you need to take steps to update your estate plan.

If you’re going through (or have recently gone through) the emotional and financial turmoil of a divorce, estate planning may be the last thing on your mind. But after a divorce, you need to take steps to update your estate plan. Here are three steps you can take to make sure your estate plan reflects your current life and wishes:

1. REVOKE YOUR WILL AND MAKE A NEW ONE. Start by revoking your old Will (literally tearing it up is the best way) and making a new one. If you don’t already have a Will, now’s the time to make one. The same is true if you made a living trust while you were married.

A Will is a document where you:

* Leave your property to the people of your choice.
* Name a Personal Representative to wrap up your estate when the time comes.
* Nominate a guardian to take care of minor children if it’s ever necessary.

All of these choices may be affected by divorce. If you’re like most people, if you made a Will while you were married, you left everything to your spouse—probably not the result you want now. It’s best to start fresh with a new Will, naming new beneficiaries and alternate beneficiaries, who would inherit if your first choice didn’t outlive you.

In most states, if you get divorced after making a Will, any gifts that your Will makes to your former spouse are automatically revoked. For example, Washington law says that dissolution (divorce) of a marriage revokes any gifts that your Will made to your former spouse. The rest of the Will is not affected. But it’s not a good idea rely on state law. Not every state has a law like Washington’s, and laws can change.

Relying on state law also can create some uncertainty about what happens to the property you left to your former spouse, if state law revokes that provision of your Will. The general rule is that the property passes as though your former spouse had died before you did. So if your Will named an alternate (contingent) beneficiary for that gift, that beneficiary inherits. If you didn’t name an alternate beneficiary, but did name a “residuary beneficiary,” then that beneficiary inherits. Otherwise the property passes under state law, as if there were no Will, to your closest surviving relatives.

Those potential complications underscore the importance of making a new Will. That way, it will be clear about who you want to inherit, and you can name alternates as well.

If you don’t want your ex spouse to inherit your property, you probably don’t want them in charge of your estate either. But if you named your spouse as your Personal Representative, it could happen unless you make a new Will. Again, in many states, divorce revokes the appointment of a former spouse to serve as PR of the estate or Trustee of a Trust. The alternate PR, if you named one , would serve instead. Still, don’t count on state law—in your new Will, appoint a new PR and an alternate.

A key reason that many parents of young children make Wills is to name a guardian who would raise their children in the unlikely event neither parent could. If you have kids under 18, that’s one reason you want to make a Will. A court will appoint a guardian to care for a child only if both parents are deceased or unfit. (And courts find a parent unfit only if there is a serious and ongoing problem, such as a history of child abuse or addiction.) If you don’t want your ex spouse to raise your children in the event of your untimely death because you don’t think he or she is a good person or a good parent, it’s probably not something you can prevent.

In your Will, however, you can name whomever you choose to serve as guardian, in case both you and the other parent aren’t available. (It is, thankfully, rare for both parents to be unavailable.) If you feel strongly that the other parent shouldn’t have custody of your children, so say in your Will and write down your reasons in a separate writing and attach it to your Will. It will at least give the judge something to consider.

2. UPDATE BENEFICIARY DESIGNATIONS. As important as your Will is, it might now cover some of your most valuable assets. Many assets pass outside of a Will, to beneficiaries named on paperwork provided by a retirement plan administrator or insurance company. So be sure to update your beneficiary designations for:

* Life insurance policies
* Retirement accounts such as IRAs and 401(k)s
* Pay-on-death bank accounts
* Transfer-on-death brokerage accounts

To name a new person to inherit these assets, request new documents from your insurance company, brokerage company, or employer and submit them as soon as possible.

Don’t assume that state law (or even the terms of a divorce decree) will revoke any earlier designations you made naming your former spouse. Certain “qualified plans,” such as 401(k)s, pensions, and employer-provided life insurance policies, are governed by a federal law called ERISA (the Employee Retirement Income Security Act) and ERISA says that a plan administrator must turn funds over to the beneficiary named in the plan documents—no matter what state law says. So if your former spouse is still the named beneficiary, they will inherit unless you change the paperwork.

3. MAKE NEW POWERS OF ATTORNEY. Powers of attorney—documents that give someone authority to act for you if it’s ever necessary—are a big part of an estate plan. You should have two powers of attorney: one for healthcare (medical decisions) and one for financial matters. If you already have powers of attorney that give your former spouse authority to make decisions on your behalf, revoke them and make new documents.

If you or your friends or family members have questions about of the above information, give us a call at 253.858.5434 to see how we can help. We represent clients throughout Washington and Idaho and are available to meet in person, by phone, or via Skype or FaceTime.

What is a "living trust"?

A lot of estate planners and financial advisors talk about using "living trusts" (also known as a "revocable living trust" or "inter vivos trust") as a solution for a wide variety of problems associated with estate planning that Wills cannot address. Some lawyers regularly recommend the use of such trusts, while others believe that their value has been somewhat overstated. The choice of a living trust should be made after consideration of a number of factors.

The term "living trust" is generally used to describe a trust that you create during your lifetime. A living trust can help you manage your assets or protect you should you become ill, disabled, or simply challenged by the symptoms of aging. Most living trusts are written to permit you to revoke or amend them whenever you wish to do so. These trusts do not help you avoid estate tax because your power to revoke or amend them causes them to continue to be includable in your estate. These trusts do help you avoid probate, which may not always be necessary depending on where you live and the cost and complexity of probate in your state.

A "living trust" is legally in existence during your lifetime, has a trustee who currently serves, and owns property which (generally) you have transferred to it during your lifetime. While you are living, the trustee (who may be you, although a co-trustee might also be named along with you) is generally responsible for managing the property as you direct for your benefit. Upon your death, the trustee is generally directed to either distribute the trust property to your beneficiaries, or to continue to hold it and manage it for the benefit of your beneficiaries. Like a Will, a living trust can provide for the distribution of property upon your death. Unlike a Will, it can also (a) provide you with a vehicle for managing your property during your lifetime, and (b) authorize the trustee to manage the property and use it for your benefit (and your family) if you should become incapacitated, thereby avoiding the appointment of a guardian for that purpose.

If you have questions about whether a revocable living trust is right for your estate plan, 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.

If you've been in an auto collision, hiring a lawyer can be extremely helpful in negotiating the chaotic and confusing world of insurance claims and settlements.

An auto collision brings with it a host of questions. Who is at fault? Who pays for damage to my car? Who will pay for my medical bills? How much should I get for pain and suffering? Can I ask the insurance company to reimburse me for lost wages? A lawyer can be extremely helpful in negotiating the often chaotic and confusing world of insurance claims and settlements.

Because most injury attorneys work on a contingent fee basis, and only get paid if there is a successful resolution to your claim, there is often little incentive to try to handle these types of claims on your own, unless no injuries or serious damage were involved and a settlement would be very small. If you're injured in a car crash, then hiring a lawyer will almost always ensure a much better settlement.

Hiring a lawyer to represent you after a collision means you will have a professional working for you--one who is knowledgeable about the relevant laws and procedural rules that may affect your case. A lawyer can advise you of any statutes of limitations that can bar you from filing a lawsuit against the at-fault driver. For instance, in Washington you must file your lawsuit within 3 years of the incident or be forever prohibited from filing your lawsuit; in Idaho, the statute of limitations is 2 years. A lawyer will also be able to inform you about any special exceptions to the statute of limitations--for minors, for example.

Your lawyer can file a lawsuit on your behalf and will know how best to mitigate any possible defenses raised by the other side. In addition, once your case gets under way, your lawyer will play an invaluable role in preparing your case for trial--and even going to trial if your case doesn't settle.

Finally, and perhaps most importantly, having a lawyer who is knowledgeable about the law evens the playing field, especially when you are going up against the experience and vast resources of a large insurance company.

There is a lot of work that goes into negotiating an insurance settlement and trying a personal injury lawsuit. After you have been in a car crash, taking on this time-consuming work may be the last thing you want to do, assuming you're able. A lawyer can do it all for you. Whereas this may be your first time dealing with the ins and outs of an injury claim, lawyers have dealt with all manner of claims and a variety of insurance companies. They have experience obtaining the necessary evidence to support your claim, including gathering police reports, witness statements, medical records and bills, and employment and lost wage information.

Your lawyer will also be able to organize the evidence and prepare a settlement demand for the insurance company. If you are unable to settle your case, your attorney can take care of filing the necessary paperwork to start a lawsuit and can deal with the defense attorneys on your behalf. Having someone knowledgeable handling the hard work of your case eases the burden on you, which is especially important if you have been seriously injured and are trying to recover from your injuries.

Perhaps the most important way a lawyer can help you with your case is by being your advocate. This means that your lawyer acts on your behalf and for your benefit throughout the entire claims process (negotiating with the insurance company) and even in court if a lawsuit becomes necessary. Your lawyer will be your champion before the judge, jury, and other attorneys, making sure that your side of the story is heard and that you are compensated for all of your losses.

Having an experienced advocate working for you is essential in obtaining a reasonable and fair resolution in your case.

If you or a friend, family member, neighbor, or co-worker has been injured in an auto collision, give us a call at 253.858.5434 to set up an appointment right away.

Are you planning to start a new business in 2020? You may need a lawyer to advise you regarding your business startup. We can help!

Are you planning to start a new business in 2020? When people decide to start a business, they usually have a great idea and some money to invest in the enterprise. Some people choose to start the business by themselves or with family members, while others have partners or other investors who will not be involved with the day-to-day affairs of the business.

The laws that apply to start-up businesses differ based on the specifics of the situation, and even business people who decide to go it alone have options to protect themselves from personal liability for business debts and obligations. For this and other important reasons, you most likely will need a lawyer to advise you regarding your new business.

CONTRACTS. Most businesses execute contracts for space, services, and supplies. Businesses often have agreements between partners, investors, and employees. It is important to get it right so you don't end up in court.

REGISTERING, LICENSES, AND PERMITS. Some business entities are required to register with the state in order to be recognized. Even businesses that are not required to register may be required to obtain licenses or permits.

FORM OF BUSINESS. The choice of business form (i.e., sole proprietorship, partnership, LLC, or corporation) often dictates the legal responsibilities and potential liability of those involved in leading the business, as well as the manner in which it may operate. For example, choosing the wrong entity may make you personally liable for the wrongs of employees or partners.

MULTI-STATE BUSINESS. The preconditions to forming and conducting a business entity in one state may not be accepted in another state. If you are not careful, the protections you have in your home state may be lost if you do business in another state.

CAPITAL. Businesses need to raise money, keep records of income and distributions, and behave in a fiscally responsible manner. Different business entities may require different procedures for raising capital and making distributions.

VARIETY OF ENTITIES. Although there are 5 basic business entities, there are other options within these entities that determine things like double taxation and liability for the acts of partners.

AUTONOMY. With many business entities, the things you don't decide are decided for you. Most states have adopted "Uniform Laws" that fill in the gaps for business entities where their charters, bylaws, and other organizing documents are silent. You may be subject to a whole set of laws and regulations that you don't even know exist.

TAXES. Different business forms provide different tax advantages and disadvantages.

LIABILITY. Different business forms provide different protections and risks to the business owner/investor. Personal liability means that your business puts everything you own at risk. A lawyer can help you avoid this situation or minimize your risk. Knowing about your personal liability, and reducing the risk that your business may devastate the economic well-being of you and your family is well worth a visit to a lawyer.

In most cases, you're going to need the services of a lawyer for your startup, perhaps for tax services or employment law compliance. Give us a call at 253.858.5434 to find out how we can help you. We represent clients throughout Washington and Idaho and are available to meet in person, by phone, or via Skype or FaceTime.

Benefits of hiring a lawyer when you're the Personal Representative of a deceased loved one's estate.

When you’re the Personal Representative of a deceased loved one's estate and you're winding up the estate, there’s usually a lot of legwork to be done—things like making phone calls and gathering documents. Many of these tasks don’t need to be done by a lawyer. So if you’re paying your lawyer by the hour, you’ll probably want to volunteer to take on some of this work yourself. Just make sure it’s clear who is responsible for what tasks, so things don’t fall between the cracks. For example, make sure you know who is going to (1) order death certificates, (2) file the will with the court, (3) get appraisals of valuable property, and (4) file the deceased person’s final income tax return.

Keep in mind that many lawyers are more flexible than they used to be about offering what’s often called "limited representation" or "unbundled legal services." In other words, many lawyers no longer insist on taking responsibility for all the work of a probate case. They will agree to provide limited services—for example, answering your questions during the probate process or assisting with the preparation of court pleadings or the estate inventory—while you take on other tasks traditionally done by the lawyer. Be sure to get your agreement in writing, so both you and your lawyer are clear on your responsibilities.

IMPORTANT DATES AND DEADLINES. It’s a good idea to ask the lawyer for a list of deadlines—for example, when is the cutoff for creditors to submit formal claims, and if there's to be a final hearing, when will it be held? This will be helpful both if there are things you need to do, and if creditors or beneficiaries contact you with questions.

DEALING WITH BENEFICIARIES AND CREDITORS. If everyone gets along, it probably makes sense for you, not the lawyer, to field questions from beneficiaries. It will save money, and you’ll know what beneficiaries are concerned about. If you send regular letters or emails to beneficiaries to keep them up to date (this usually helps keep them from getting anxious), you might ask the lawyer to review your communications before you send them, to make sure you’ve got everything right.

GETTING LEGAL ADVICE AS YOU GO. Check in with your lawyer regularly to see if anything is happening with the probate case. Usually, no news is good news. State law requires you to keep the probate case open for a certain number of months, to give people time to come forward with disputes or claims—but in most probates, beneficiaries don’t argue about anything in court, and few creditors submit formal claims.

By all means, ask your lawyer any questions you have about the proceeding. But if the lawyer is charging by the hour, try to be efficient when you communicate. If you can, save up a few questions and ask them during one phone call or office visit. But if you are unsure about taking a particular action that will affect the estate—for example, you want to give one needy beneficiary his inheritance months before the probate case will close—get legal advice before you act.

If you have questions about hiring a lawyer to represent you in a probate matter, give us a call at 253.858.5434 to set up an appointment today.

Hiring a Lawyer to Review a Contract - 4 Basic Steps

If you've never hired a lawyer before, the idea of having a lawyer review a contract may seem expensive and intimidating — it shouldn’t be! When a client hires us to review a proposed contract for them, we go through 4 basic steps:

‍STEP 1: AN OPINION LETTER. When a client brings a contract to us for review, the first step is for us to prepare an opinion letter for the client. The opinion letter will lay out a bullet point list of both the items that we believe should be changed in the contract as well as items that the client should be aware of, including obligations that the contract imposes that may not be obvious. Depending on the length and complexity of the contract, this letter is usually inexpensive to produce.

‍STEP 2: DISCUSSION WITH THE CLIENT. Once the opinion letter has been delivered to the client (usually by email), we will have a brief discussion with the client to go over the important points in the letter and answer any questions the client may have.

‍STEP 3: COMMUNICATING PROPOSED CHANGES TO THE OTHER SIDE. Once the client understands the opinion letter, the client will make a decision as to which of the recommended changes to the contract the client would like to pursue. Depending on the situation (and the client’s budget) the client can either: (1) deliver the opinion letter to the party he or she is contracting with and ask that all of the changes be made; (2) copy and paste particular paragraphs of the letter that the client actually wants to use to negotiate the contract and deliver those paragraphs to the other party; or (3) have us work directly with the other party or the other party’s lawyer to communicate the proposed changes. Depending on the circumstances, we may actually insert the proposed changes and deliver a revised contract to the other party.

‍STEP 4: REVIEWING THE REVISED CONTRACT. If the other party is responsible for revising the contract, the last step is for us to review the revisions that we proposed to ensure that the final contract reads correctly.

‍If you are thinking, “This is a simple contract, I don’t want to pay to have it reviewed,” you may want to reconsider. The simpler the contract, the less expensive the review, and even simple contracts can have serious ramifications if drafted incorrectly. Remember, disputes over an ambiguous, unfavorable, or poorly drafted contract are much more costly than hiring a lawyer at the outset to make sure that such disputes are avoided with a good contract.

If you are about to enter into a contract and would like it reviewed by a lawyer before you sign, give us a call at 253.858.5434. We proudly represent clients throughout Washington and Idaho and are available to meet in person, by phone, or via Skype or FaceTime.

Owning real estate in multiple states can drastically affect your estate plan. We can help!

Owning real estate in multiple states is a dream for many people. You could have a residence in one state and a vacation home or rental property in another state. This sounds great, but there can be consequences down the road. Owning real estate in multiple states can drastically affect your estate plan.

One key aspect of making an estate plan is to lessen the burden on those that will have to administer and distribute your estate in probate as your Personal Representative. This burden is greater when one owns real estate in multiple states. If one is a resident of one state and has property in another state (and that ranges from a house or ranch or commercial building, or to land as small as just a timeshare) there may be a more difficult and expensive situation for your loved ones down the road.

The real estate that is in your state of residence will be probated through the probate court in your home state. Probate courts exist to change title from the deceased person's name to the names of their heirs. The probate court in your home state does not have the authority to probate real estate in other states. This means that a probate proceeding must be initiated in each state where a person owns real estate in even if it is just a timeshare in Florida where you spend just one week in a year. This also means your estate must pay additional fees for probate and most likely lawyers in each additional state.

A solution to probate in multiple states (or what is called "ancillary probate") can be a revocable living trust. A revocable living trust takes the title of the property out of your name and puts title of the property into the name of the trust. Probate is only necessary for assets titled in your name. Once title of property is removed from your name there is no need for probate of that property in one state or multiple states.

A revocable living trust is not meant for everyone's estate plan, but it makes sense for those with property in other states. Living trusts can be pushed on some that do not really need it as part of their estate plan, but owning real estate in more than one state is a serious reason to look in to getting one made.

If you have questions about whether a revocable living trust is right for your estate plan, 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.

New Years Resolution: Make 2020 the year you prepare an estate plan. We can help!

It's that time of year when people start thinking about making resolutions, plans, and getting things in order for the new year. Make 2020 the year you prepare an estate plan, or at least review and update your existing estate plan. Protect yourself, your property, and your family by making a Will, Trust, Power of Attorney, Health Care Directive, or whatever other documents are appropriate for your situation.

We can help you out with that resolution. 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 or FaceTime.

Having children complicates life in many ways, and estate planning is no exception. Here are 4 things to think about.

Having children complicates life in many ways, and estate planning is no exception. Most young parents don’t need anything fancy, but there are a few things you should definitely think about. Here are four simple steps to take.

MAKE A WILL. For most young parents, writing a Will is less about leaving their assets than it is about naming guardians for the kids. The guardian you name in your Will is the person who would take over if both you and the other parent were unavailable to raise your children. That’s very unlikely, but worth addressing just in case.

If your children ever needed a guardian, the court would appoint the person you nominated in your Will, absent a serious problem with that person. If you haven’t made your wishes clear in your Will, however, the court would have to choose someone without any guidance from you. The common choice is a family member. But what if you really wouldn’t want certain family members to raise your children? Or if you would prefer that a close friend, who has a good relationship with your kids, step in as guardian? The court wouldn’t have any way of knowing.

Many parents get stuck when they go to choose a guardian—after all, no one likes even thinking about someone else raising their children. And parents sometimes discover that they disagree about who would be best.

The other big reason to write a Will is that if you don’t, and if both parents died, your property would have to go to a court-supervised guardianship rather than a private Trust and you would have less control over how your money was spent on your children's behalf.

BUY LIFE INSURANCE. This is more of a financial planning task than a legal one, but it’s good to address when you’re thinking about taking care of your kids. Buying a life insurance policy that would replace your earnings for a few years is a great way to ensure that if you or the other parent died unexpectedly, the survivor would quickly have access to cash to help support the family.

Term life insurance, which stays in effect for a set number of years, is often a good choice for young parents. If you’re reasonably young and healthy, term insurance is cheap.

MAKE POWERS OF ATTORNEY AND A LIVING WILL. Every adult should have an advance medical directive ("living will") and durable powers of attorney for health care and for finances. If an accident or sudden illness strikes, these documents will make things much easier for your family.

In your living will, you set out your wishes for end-of-life care. (A living will is nothing like a regular “last will and testament” in which you leave property and name guardians for children.) Your document can be as detailed or as general as you wish. For example, you might simply say that you want everything necessary to relieve pain (called palliative care or comfort care) but don’t want to receive extraordinary measures such as CPR in certain circumstances.

In a power of attorney for health care, you give a trusted person the authority to carry out the wishes in your advance directive, and to make other medical decisions if you can’t. Depending on where you live, the person you name is called a health care agent, attorney-in-fact for health care, health care proxy, or surrogate.

A durable power of attorney for finances works like a health care power of attorney, except it gives someone authority over your assets. This can be a big benefit to family members—your spouse might need quick access to your checking account to pay the mortgage, for example. Without a DPOA for finances, a court order would be necessary.

If you’re young and healthy, do you still need these documents? Yes—even though it’s very unlikely that they will ever be used. If you were seriously injured, these documents would let your family know what you wanted, sparing them very difficult decisions and heading off disagreements. It’s young people who are strong enough to live a long time with serious injuries. (Terri Schiavo was 26 when her illness began and she fell into a permanent vegetative state.)

DESIGNATE BENEFICIARIES FOR RETIREMENT ACCOUNTS. One last simple (and free) step to take is to name beneficiaries for your retirement accounts--any IRA or 401(k) account you’ve opened. All you need to do is fill out the beneficiary form provided by your employer or the account custodian. If you want to change it later, you can just fill out and submit a new form. By naming a beneficiary, you make it possible for the funds in the account to go directly to the person (or persons) you name, without probate. That will save your family the hassle and expense of probate proceedings.

If you have young kids and have questions about estate planning, give us a call at 253.858.5434. We proudly represent clients throughout Washington and Idaho and are available to meet in person, by phone, or via Skype or FaceTime.

What's the process involved in a typical personal injury case?

If you've been in an auto collision and think you might have a personal injury claim, you might be wondering what goes on in a typical case, and how long it takes. The process usually goes like this:

GET MEDICAL TREATMENT. The first thing you should do after getting injured in a collision is to get medical treatment. If you are hurt, call an ambulance, go to the hospital, or see a doctor. Not only is this the right thing to do for your health, but also, if you don’t see a doctor for some time after a collision, the insurance company and the jury will assume that you weren’t all that hurt.

HIRE A LAWYER. The next thing that you will want to do for anything more than a minor claim is to choose a lawyer. You should choose the lawyer soon after the injury. You can certainly settle a small personal injury claim yourself (although a lawyer is generally useful even for smaller claims), but you will absolutely need a lawyer for any personal injury claim where you suffered significant injury or other losses.

Where do you draw the line between a small claim in which you don’t necessarily need a lawyer and a larger claim where you do? In general, if you are out of work for more than a couple of days, if you break a bone, or if your medical bills total more than a couple of thousand dollars, you should hire a lawyer.

You should certainly talk to a number of lawyers, and you might want to meet several of them. After you choose a lawyer and sign a fee agreement, they will start working on your case.

THE LAWYER INVESTIGATIONS THE CLAIM AND REVIEWS YOUR MEDICAL RECORDS. The first thing your lawyer will do is thoroughly interview you about how the collision happened, your background, and your medical condition and medical treatment. Your lawyer wants to know everything that you know about the collision and your injury and treatment. Lawyers don’t want to be surprised, so make sure to answer all questions as completely as you can.

Then, the lawyer will contact the insurance companies to inform them that you have retained legal counsel. Then they will get all of your medical records and bills relating to the injury and will probably also get your medical records for any treatment that you have ever had relating to the condition at issue in the case. This can take several months, especially if you are still treating for your injuries.
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After all of the medical records come in, your lawyer will review them to see if, in their opinion, there is a possible case. Sometimes the lawyer will determine that there is no case and will deliver the bad news to the client very early on in the representation.

THE LAWYER MAKES A SETTLEMENT DEMAND AND NEGOTIATIONS BEGIN. Many smaller personal injury claims are settled before a lawsuit is ever filed. If the lawyer thinks that the case can be settled, they will make a demand to the other attorney or the other side's insurance company. Otherwise, your lawyer will file the lawsuit. In general, if your claim involves a claim of permanent injury or impairment, your lawyer will not settle it before filing suit.

An experienced lawyer will also not make a demand until the claimant has reached a point of maximum medical improvement (MMI). MMI is when the claimant has ended their medical treatment and is as recovered as they are going to get. This is because, until the claimant has reached MMI, the lawyer does not know how much the case is worth.

The lawyer should also not file a lawsuit until MMI. This is because, if the claimant is not at MMI by the time that the case goes to trial, the jury might undervalue the case.

It could take months or years for the claimant to reach MMI, but a good lawyer will just wait, if the claimant can financially afford to wait. Obviously, if the claimant needs money, then the lawyer should file suit as soon as possible.

THE LAWSUIT IS FILED. The filing of the lawsuit starts the clock running on when the case might get to trial. Every state’s (and often every county's) pretrial procedures are different, but generally it will take one to two years for a personal injury case to get to trial. Keep in mind that a lawsuit needs to be filed within strict time limits that every state has set by passing a law called a statute of limitations.

DISCOVERY. Discovery is the procedure in which each party investigates what the adversary’s legal claims and defenses are. They send interrogatories (written questions) and document requests to each other, and take depositions of all of the relevant witnesses in the case, generally beginning with the plaintiff and defendant. This process can last six months to a year, depending on the court’s deadlines and the complexity of the case.

MEDIATION AND NEGOTIATION. As the discovery period ends, the lawyers will generally start talking about settlement. Sometimes the lawyers can settle a case just by talking among themselves, but, in other cases, they will go to mediation. Mediation is a process in which both clients and both lawyers go in front of a mediator who helps them try to settle the case.

TRIAL. Often mediation works, but if it doesn’t, the case is scheduled for trial. A personal injury trial can last a day, a week, or even longer. One important thing to know about trials is that just because a lawsuit is scheduled for trial does not mean that the trial will actually occur on that date. Trials often get rescheduled because of the judge’s schedules. If your trial gets cancelled, you should not automatically assume that the lawyers are conspiring against you or that something unfavorable is happening. Trials are delayed all the time, and for the most innocuous of reasons.

If you or a friend or loved one has been injured in an auto collision and have questions about how the claim process works, give us a call at 253.858.5434 to find out how we can be of service.