Washington has an official COVID-19 website for businesses and workers: www.coronavirus.wa.gov.

Washington has an official COVID-19 website for businesses and workers, maintained by the state Joint Information Center (JIC). The JIC is part of the Washington State Emergency Operations Center operated out of Camp Murray. The website can be found at www.coronavirus.wa.gov.

This website is constantly being updated; it provides links to official information from a wide range of trusted sources, including government and community services. This website includes information on:

* Financial assistance for businesses and workers
* Insurance information for businesses
* Small business loans
* Resources for small businesses and nonprofit organizations
* Guidance for state agencies

The COVID-19 crisis has raised questions and concerns regarding estate planning. Given the current atmosphere, here are a few things to consider.

The COVID-19 crisis has raised questions and concerns with regard to estate planning. Given the current atmosphere, here are a few tips to consider:

1. Make sure your documents are current and reflect your wishes. At times like these, we are reminded of the most fundamental purpose of estate planning–to make sure that our plans, and the documents that carry out those plans, reflect our wishes. With that in mind, now would be a great time to review your existing documents and ensure they reflect your current thinking. Specifically, you should answer the following questions:

* Are the named Personal Representatives (in your Will) and Trustees (in your Trusts), as well as all successors, suitable, able, and willing to serve? Do the provisions of your Will and Trusts direct that your property pass to the people and/or charities you wish to benefit in a manner that reflects your wishes and the needs and best interests of those beneficiaries?

* Have there been any major life changes (such as changes in marital status, births/deaths, changes in residence, major purchases or sales of assets, or acquisitions/sales of property located in another state or country) since you last executed your estate planning documents?

* Are the beneficiary designations on your retirement accounts and life insurance policies up to date?

* Do you know where your original Will and Trust Agreements are located?

2. Make sure your advance directives are up to date and that you have copies available. Your advance directives (such as your Directive to Physicians ("Living Will") and Health Care Power of Attorney) express your wishes and authorize your agents to make medical and financial decisions for you in the event you are unable to do so. Review these documents to ensure that they reflect your current wishes and name the persons who you trust will be able to tend to those matters on your behalf. In addition, make sure to discuss your health care wishes with your agents so that, if necessary, they are prepared to make decisions that reflect your wishes. For instance, consider whether you want heroic measures, such as intubation, to be taken in the event that, because of illness, you cannot breathe on your own.

3. Focus on your estate plan if you have not yet done so. Some say that "perfection is the enemy of good." Many people put off on starting, or delay completing, their estate plans while trying to finalize some difficult decisions. As the current crisis reminds us, we never know exactly when we will need our estate plans. Therefore, focus on completing your plans to the best of your ability now, and remember that you can make changes in the future.

4. This too shall pass. The current environment is frightening and rightfully so, but we know that it will eventually be behind us. Given the current financial climate, including the volatility of the stock market, there are, and will undoubtedly continue to be, opportunities to transfer wealth. Some of the most successful estate plans are those that took advantage of the economic crisis of 2008-2009, and we expect that future successful estate plans will be born of actions taken in the current climate. Specifically, current tax laws offer many opportunities to transfer wealth to children (and further descendants) and others without the imposition of estate or gift tax. Since some of these tax advantages are scheduled to expire in 2026, now may be the perfect time to utilize them.

For any questions or concerns, feel free to reach out to us to discuss further. We proudly represent clients throughout Washington and Idaho and, although we are not currently scheduling in-person meeting, we are entirely available to meet by phone or via Skype, FaceTime, Zoom, or Facebook Messenger.

How the CARES Act Impacts Employee Defined Contribution and Retirement Plans

As mentioned previously, the CARES Act was signed into law on March 27, 2020, with many components receiving national headlines as it provides unprecedented benefits to small business owners and employees. The CARES Act includes several provisions impacting employee defined contribution retirement plans, such as 401(k) plans, that employers should be aware of, as follows:

* PARTICIPANT LOANS: Eligible participants are allowed to take out loans in amounts up to the lesser of $100,000 or 100% of the participant's vested account balance beginning 3/27/20 through 9/23/20. Previously, this was limited to $50,000 or 50% of the participant's vested account balance.
* DELAYED PAYMENTS. Additionally, for participants with existing outstanding plan loans, repayments between 3/27/20 and 12/31/20 may be delayed for one year. The interest on the loan will continue to accrue on the outstanding principal balance.
* REQUIRED MINIMUM DISTRIBUTIONS: RMDs for 2020 are waived for IRAs and defined contribution plans.
* HARDSHIP DISTRIBUTIONS: Eligible participants are allowed to take a hardship distribution up to $100,000 without incurring the 10% early withdrawal penalty. Participants are able to take these distributions through 12/31/20. Additionally, the distribution can be included in the participant's taxable income ratably over three years or be repaid within three years without having to include the proceeds in taxable income for Federal reporting purposes.

The CARES Act defines an eligible participant for hardship distributions and participant loans as anyone meeting any of the following three criteria:

* A participant who was diagnosed with COVID-19 by a test approved by the CDC.

* A participant whose spouse or dependent was diagnosed with COVID-19 by a test approved by the CDC.

* A participant who experiences financial hardship from quarantine, including being laid off, furloughed, a reduction of working hours, or lack of child care due to COVID-19.

The CARES Act provides the Dept. of Labor with the authority to delay certain reporting requirements of the Employee Retirement Income Security Act of 1974 (ERISA) in the event of a public health emergency as declared by the Secretary of Health and Human Services. This includes annual Form 5500 filings. As of today, the DOL has not provided any guidance regarding a delay in any reporting requirements.

If you want to take advantage of this program, please talk with your retirement plan's administrator, as your plan may need to be amended to allow for these provisions.

Insurance companies are low-balling settlement offers to injured claimants during the coronavirus crisis. Call us if you need legal advice.

If you were injured in an auto collision that wasn't your fault, here's something you should know: Every insurance company has one thing in common—they want to pay you as LITTLE as possible. Don't be offended—it's not personal, it’s just how they make money. They charge monthly premiums, which most customers dutifully pay each month, only to try to avoid paying out when people REALLY need it.

Despite all of the "good hands" and “good neighbor” marketing—frequently presented in really funny ads with the mayhem guy or Aaron Rodgers or Peyton Manning—insurance companies are not there to be your friend, be your neighbor, or loan you a cup of sugar when you’re baking cookies with your kids. They are there to make money for their shareholders, nothing more and nothing less.

The trick to doing that as an insurance company is to take in as much as you can in premiums, and pay out as little as you can in claims. Again, it's not personal, it's just math. It’s a business, like any other, and auto insurers are there to make money. If you want a “good neighbor,” I’m sorry, but you’re going to have to talk to your actual neighbors.

And here's some bad news for you. In the past few weeks, we've found that insurance companies, particularly those we like to call the "Triad of Evil" (Allstate, State Farm, and Farmers), have been especially low-balling settlement offers to injured claimants during the coronavirus crisis. Our guess is that they have realized that people, especially people who are injured, are growing more and more desperate for money. Unemployment is soaring and real estate values are dropping. Many Americans are struggling to provide for basic needs such as housing, clothing, and food. And while they are struggling, insurance companies are enjoying tremendous opportunity by offering injured persons pennies on the dollar to resolve their personal injury claims.

Don't take the first settlement offer the insurance company makes. You deserve better than that. If you or a friend or family member has been injured in an auto collision and need legal representation, call us at 253.858.5434 to set up an appointment (via video conference) right away.

Social Distancing: Keep Up the Good Work! We're All in This Together!

This stay-at-home order is rough, especially if your job isn't deemed "essential" and you're at home, waiting it out, and not having much, if any, in-person social interaction. Our instincts are telling us to do something, to be productive, to help out somehow. So here's a reminder for you: Every day you're social distancing, not getting infected, not infecting someone else, and not further burdening our already burdened health care system, you're helping. So keep up the good work! We're all in this together!

Paycheck Protection Program loans are available to small businesses under the CARES Act, designed to keep employees on payroll, rehire laid off employees, and/or pay benefits to employees.

To our small business clients - On March 27, the CARES Act was signed into law, and while there are several programs under the law, the provision currently requiring the most urgent action is the Paycheck Protection Program loans. The PPP loans are available to small businesses (less than 500 employees). These loans are designed to provide up to 2.5 times the average monthly payroll to businesses in order to keep employees on the payroll, rehire laid off or furloughed employees, and/or pay benefits to employees. These loans may be forgiven if conditions are met - generally spending the funds received on payroll costs.

This process has moved exceptionally quickly, and we have been working to understand the programs to help our clients, while banks have put programs into place to accept applications and deploy funds as quickly as possible within this program. The Small Business Administration had originally intended for banks to start receiving applications on Friday, April 3rd, but many banks were awaiting final guidance from the government and SBA on how to administer these programs, and some will not start accepting applications until today or later this week.

Under the interim final rules, released late on April 2nd, we note the following:

* Banks have the ability to rely on certifications of the borrower to determine eligibility, and to rely on documents provided by the borrower for loan forgiveness.
* Independent contractors should not be included in the payroll calculation, as they have the ability to apply on their own.
* This program is generally available to businesses with less than 500 employees. Additional guidance is pending related to affiliation rules (commonly controlled/owned businesses that may have greater than 500 employees).
* Only one loan will be allowed under this program. Consider applying for the maximum amount.
* It is confirmed to be first-come, first-served. Nobody knows how long these funds will last, but speculation is that they will go fast. There is also speculation that additional funds could be made available in the future, but that is uncertain.
* The SBA will be issuing additional guidance on loan forgiveness. Currently, as long as 75% of funds received are spent on payroll, with the remaining 25% on mortgage, rents, or utilities, the loan will generally be forgiven, subject to other calculations.
* On any non-forgiven portions of the loan, the amount will be repaid over two years at a 1% interest rate.
* Lenders do not need to apply the usual "credit elsewhere test" as is usually a prerequisite for SBA loan eligibility.

Action items:
* Contact your current bank to determine their process.
* Gather and organize your payroll documents, including 941's for all of 2019, and Q1 of 2020.
* Read and complete the application that can be found on the SBA website. While your bank may have a slightly different application to complete, it will likely be similar to this one. This will help prepare you for the bank specific application.
* Perform a preliminary calculation of the maximum loan amount.
* Aggregate payroll costs for employees for the last 12 months. (We recommend being prepared with documents from January 2019 to March 2020).

We are here to help. The guidance under these programs is changing rapidly. If you are a small business owner and have questions about these PPP loans, give us a call at 253.858.5434.

Here in the era of COVID-19, your estate plan may not be the first thing on your mind. But a good plan can help you manage family matters during this health crisis.

Here in the era of the coronavirus, your estate plan may not be the first thing on your mind. But an up-to-date plan can help you manage family matters during the current health crisis, as well as prepare you for whatever the future may hold.

DURABLE POWERS OF ATTORNEY. Most estate plans include powers of attorney, and the vast majority of married couples name each other as agents under a general durable power of attorney. These documents allow each spouse to act on behalf of the other in managing various aspects of family life. For example, if there is a need to make any changes to an account or access a safe deposit box, one spouse can act for the other. In cases where an individual is battling an illness, this option can prevent unnecessary exposure to others and help ease stress.

HEALTH CARE POWERS OF ATTORNEY. In times like these, a health care power of attorney could become vitally important. Here, it’s important to keep in mind that health care powers of attorney are always “springing”—meaning that the named agent can make decisions on behalf of the spouse or loved one only if that person is unable to make his or her own health care decisions, either because of age, illness, or injury.

TAKING STOCK OF YOUR PLAN. For those of you who already have an estate plan in place, now is a good time to take stock and review it. You might start by asking yourself the following questions:

* Does it meet your wishes and reflect the current realities of your family?
* Are the named agents and powerholders still the people you want in charge when the time comes to shift responsibilities?
* Do named beneficiaries and stated payout percentages make sense? These beneficiary designations may include those you have added to your bank, brokerage, and retirement accounts.

Please note: When it comes to retirement account beneficiary designations, keep in mind that several important changes were made in 2019 under the SECURE Act. These changes include the elimination of the “lifetime stretch” for most non-spouse retirement account beneficiaries.

THE BEST LESSON? BE PREPARED. The most important takeaway here is to keep your estate plan up to date. Laws change, life and family dynamics evolve over time, and even technological advancements alter how we access our online accounts, which hold some of our most cherished property and memories. Make a point to meet with your estate planning lawyer every few years or certainly in anticipation of any major life events.

Life changes quickly, but having a solid estate plan in place will help you stay the course. If we can help in any way, feel free to give us a call at 253.858.5434 or visit us at www.aitalaw.com.

In this time of isolation and shelter-in-place orders, don't forget about the Bar Assn's Lawyers Assistance Program if you're dealing with depression, anxiety, or substance abuse issues.

To our Colleagues in the Legal Profession: Due to the nature of our profession, we often experience isolation and stress in normal, day-to-day circumstances. The additional challenges we now face with the COVID-19 pandemic, shelter-in-place orders, and lack of in-person interaction with others can be particularly acute for those already vulnerable to depression, anxiety, substance abuse, or other wellness concerns.

It is now more important than ever to remember that the Washington State Bar Association's Member Wellness Program (formerly the "Lawyers and Judges Assistance Program") and the Idaho State Bar's Lawyer Assistance Program provide support for lawyers, judges, and law students who experience problems associated with anxiety and depression, in addition to substance abuse.

These programs focus on educating legal professionals and their families and friends about the causes, effects, and treatment of depression, anxiety, and other mental health problems, in addition to alcohol and drug dependency. Lawyers, judges, and mental health professionals volunteer their time to these programs to assist those experiencing these issues. These volunteers are familiar with the special challenges faced by lawyers and judges and can connect you with a licensed counselor in your area. All services provided by these programs are confidential.

These issues are important; I'm not embarrassed and will be the first to admit that in my 23 years of practice, I've used the services of the WSBA's Lawyers and Judges Assistance Programs and cannot speak highly enough about them. If you feel like you need help for yourself or a colleague, call 206.727.8268 in Washington or 208.891.4726 in Idaho.

If you own property in California, call us to learn about avoiding probate.

If you live in California, or have vacation property or rental property in California, do whatever you can to avoid probate in California after you die. California uses a statutory attorneys fees formula to set the lawyer's fee for probate matters. If you have a $100,000 estate, the lawyer's fee is $4,000, plus expenses. If you have a $1 million estate, the lawyer's fee is $23,000, plus expenses. Here in Washington and Idaho, at the Law Offices of P. Stephen Aita, if you have a $100,000 estate, we'll charge about $3,500 INCLUDING expenses. And guess what we'll charge for a $1 million estate? Yep, about $3,500 including expenses. The amount of legal work, assuming there are no disputes among heirs or other glitches, is exactly the same for a $100,000 estate as for a $1 million estate. How does the California scheme seem fair and right? This is why things like Revocable Living Trusts and other probate avoidance techniques are much more popular in California than they are in places like Washington and Idaho with much more client-friendly attorneys fees laws and ethics rules.

We know things are weird right now, but life is still going on. The passing of a loved one is part of that, and our current situation isn't making that any easier. If you have a need for a probate lawyer in Washington or Idaho, give us a call at 253.858.5434. We're here to help!

We're still here!

We're still here! Although we're telecommuting, we continue to serve, advise, and represent our clients during this COVID-19 crisis. We're not scheduling any in-person meetings, but are entirely available to meet by phone, email, or video conference.

* 253.858.5434 * steve@aitalaw.com * www.aitalaw.com *

While we're all hunkered down at home, this is a good time to take care of some things you've been putting off - like preparing an estate plan.

While we're all hunkered down at home, this is a good time to take care of some of those things you've been putting off. You've got the time, so you might as well schedule a telephone or video conference appointment with a lawyer to talk about preparing an estate plan, e.g., a Will, a Durable Power of Attorney, Trusts, a Community Property Agreement, Living Wills, or whatever other estate planning documents fit your family's goals and situation.

Although we're not currently meeting with clients in person, we are entirely available to meet by phone or by whatever video conferencing service is most convenient for you - Skype, FaceTime, Zoom, or Facebook Messenger. We can meet, talk about an estate plan that works best for you and your family, prepare the documents, email them to you for review and approval, and then we'll figure out a date and time to get everything signed, witnessed, and notarized when the world returns to normal. Give us a call at 253.858.5434 to set something up today.

We know this is a rough time for everybody, but we can get through this together, and the Law Offices of P. Stephen Aita are here to help!

The SBA has issued a new disaster declaration, allowing low interest liquidity loans to qualified small businesses suffering economic injury as a result of coronavirus.

To our small business clients - The U.S. Small Business Administration has amended its original disaster declaration to allow low interest liquidity loans to small businesses suffering substantial economic injury as a result of coronavirus. Small businesses in all Washington counties may qualify under these terms. This update intends to provide liquidity aid to small businesses during these challenging times by making sure credit is available when it may not otherwise be obtainable. Funding may be available for businesses that are unable to access working capital on reasonable terms through traditional lending sources. The loans are intended to provide vital economic support to small businesses overcoming temporary losses of revenue. Proceeds can be used to pay fixed debts, payroll, accounts payable, and "other bills that cannot be paid because of the disaster's impact."

These loans are available in amounts up to $2 million with proceeds being limited to the economic injury determined by the SBA on a case-by-case basis. The loan term length can be up to a maximum of 30 years with a fixed interest rate of 3.75% for for-profit enterprises, and 2.75% for nonprofits. The loan application at minimum requires certain documentation including a completed IRS Form 4506-T (Request for Transcript of Tax Return), complete copies of most recently available business Federal Income Tax Return, personal financial statement (SBA Form 413) for owners of 20% or more of the business, and a schedule of all liabilities of the company. The SBA has provided guidance that loan decisions could exceed 2-3 weeks so it is important to get an application started soon if a loan is desired.

This is not the only source of disaster relief currently available, and there are other SBA or non-SBA programs that may be better suited to your business's needs.

We recommend that you consult with both your CPA and your existing lenders when considering this or other liquidity solutions. If you want to discuss your options, please connect with us at 253.858.5434. We're here to help!

Coronavirus Response: Our office is open, but not scheduling in-person meetings. We are available to meet by phone or video conference.

As the coronavirus affects our community, particularly here in the great State of Washington, the Law Offices of P. Stephen Aita continue to assist our clients that may need our help. While our office remains open with normal hours, and with our clients' health and safety as our primary concern, we are not scheduling any in-person meetings for the next month or so, but remain entirely available for meetings via telephone or Skype or FaceTime, whichever is most convenient for our clients. Let us know how we can help you during this stressful time.

Questions to Ask When Hiring an Estate Planning Lawyer

When you're planning to meet with an estate planning lawyer, you should ask the lawyer the following list of questions in order to determine if they're truly qualified to help you:

IS THE LAWYER'S PRIMARY FOCUS ON ESTATE PLANNING? This question may or may not be important to you from the standpoint that if all you need is a simple Will, Power of Attorney, and Health Care Directive, then a seasoned and sophisticated attorney may not be right for you.

A lawyer whose practice is broad but includes simple estate planning and probate matters will work just fine in this situation. On the other hand, if you have a complicated family or financial situation or a taxable estate, then you'll need to work with someone whose primary focus is on estate planning and estate tax reduction.

YEARS OF EXPERIENCE. The more years of experience the lawyer has, the more the lawyer will have had the opportunity to see their essential estate planning documents in action when a client becomes disabled or dies. The Wills, Trusts, Powers of Attorney and Health Care Directives used by lawyers who have been in business for a while have been revised and tweaked to deal with the everyday situations that their clients encounter. This will give you the peace of mind to know that the documents they prepare for you will work when they're needed.

ASSISTANCE WITH FUNDING ASSETS INTO A REVOCABLE LIVING TRUST. Many lawyers create beautiful estate plans for their clients but then fail to assist them with the next important step: funding the revocable living trust. A well-drafted trust will be virtually useless immediately after you die if your assets aren't titled in the name of the trust while you're still alive. Some big law firms have full-time funding assistants or even entire funding departments, while others will give you comprehensive written instructions. Still, others will merely mention the importance of funding but fail to give you any guidance whatsoever. We strongly recommend that you work with a lawyer who will oversee the funding process.

FORMAL UPDATING AND MAINTENANCE PROGRAMS. Many estate planning lawyers view their work as a one-time transaction - they simply draft the documents requested by their clients and then send them on their way. On the other hand, there are many estate planning lawyers, like us, who will contact all of their clients on a regular basis to inform them of changes in the law, explain new estate planning techniques, ask about life changes that will require modifications in the client's documents, and to check up on the progress of the client's funding. In our case, we do this review every three or four years for every client.

We strongly recommend working with a lawyer who has a formal updating and maintenance program because this will ensure that your plan will remain up to date and work when it's needed.

FLAT FEES VS. HOURLY RATES. This is an important question to ask so that you won't be surprised by hidden fees and costs. At our law firm, we charge a fixed fee for most, if not all, estate planning legal services. This will give you the peace of mind to know that the flat fee is all that you'll be required to pay. You'll need to understand, however, what the flat fee does and doesn't cover and when the lawyer will charge an additional flat fee or start billing you on an hourly basis.

CAN YOU SEE YOURSELF WORKING CLOSELY WITH THIS LAWYER? Once your prospective lawyer has answered the above questions to your satisfaction, there's still one big question you need to ask yourself: "Can I see myself working closely with this lawyer?" Even if the lawyer has all of the right answers, keep in mind that you'll be sharing all of the intimate details of your life with this person. If you don't feel comfortable with the lawyer, then chances are you'll end up holding certain things back. This will be doing you and the lawyer a disservice since the lawyer can't plan for, or around, things that the lawyer doesn't know. Don't be alarmed if you realize that it simply won't be a good fit with you and the prospective lawyer — it's better to find this out in the very beginning instead of after you've already spent valuable time and money. If this happens to you, simply move on until you find someone who you can work with and trust.

If you're looking for an estate planning lawyer in Washington or Idaho, give us call at 253.858.5434 to set up an appointment today.

Lawyers Helping Hungry Children Annual Fundraiser Luncheon on April 23 in Seattle - Registration Opens on March 1

Lawyers Helping Hungry Children has just announced that its annual fundraiser luncheon will be held on April 23 at Plymouth Congregational Church in Seattle. Registration opens on March 1; keynote speaker to be announced later. LHHC provides lawyer and law firm volunteers and raises funds to benefit Northwest Harvest, CARE's World Hunger Campaign, the King County Emergency Feeding Program, and the City of Seattle Summer Food Service Program. If you would like to attend the fundraiser or otherwise donate to Lawyers Helping Hungry Children, call our office and we'll give you a hand.