Let's face it - death and money make people emotional. We can help resolve family disputes that arise during the estate distribution process.

Let's face it, death and money make people emotional. Old family feuds can get worse after the death of a loved one and family tensions can reach boiling point during the estate distribution process. All of this can lead to litigation. We understand that, in certain cases, litigation is the only method of resolution and we will not hesitate to advocate strongly on your behalf in court.

For many reasons probate, trust, and estate litigation can be complex. We will advise you by providing counsel on pre-litigation strategies, analyze potential risk, and documentation review. We then apply creative problem solving to secure a favorable resolution for you.

Probate, trust, and estate litigation includes disputes regarding:

* Contested Wills
* Improper disbursement of estates
* Issues regarding the personal representative, executor, or trustee of estates
* Trust litigation
* Claims against fiduciaries

We are also strong proponents of alternative dispute resolution (ADR) and legal solutions that include mediation. Whenever possible, we encourage our clients to amicably and respectfully resolve their disputes. The provisions in Washington’s Trust and Estate Dispute Resolution Act (TEDRA) allow for resolution of disputes regarding trusts and estates through out-of-court processes such as mediation, arbitration, and agreement. We have experience representing heirs as well as defending estates under TEDRA actions.

In every case we handle, we underline the importance of practical planning in order to reach a solution for your case. Proper estate planning is key to avoiding any unpleasant family feuds regarding estate distribution. Call us today at 253.858.5434 to see how we can help.

Why Estate Planning is Important for Young Families with Children

Young people with children are usually in the beginning stages of their careers, and might not have an estate large enough to be affected by the estate tax upon their deaths. In 2020, an estate must be larger than $2.193 million to incur any Washington State inheritance tax, and larger than $11.58 million dollars to incur any federal estate tax. Nevertheless, there are many non-tax reasons for people with young children to develop an estate plan. An estate plan generally refers to a Will, a Power of Attorney, and a Directive to Physicians.

A Will is a critical document which designates how you would like to distribute your estate assets after your death. Married couples, in most cases, leave their estates to each other upon the first spouse’s death, expecting that the surviving spouse will use the inherited assets to care and provide for the children. When both parents have passed and leave minor children, the distribution of estate assets becomes more complex. The following issues should be considered by parents when making their Wills:

* Who will care for minor children in the event both parents die? Naming a guardian in the Will provides the best evidence of who the parents would like to make decisions for their children. When deciding on a guardian, parents should take into account the proximity of the guardian’s residence to the children’s current home, the lifestyle and religious beliefs of the guardians, and the financial situation of the guardian. Parents should name the same guardians in their Wills so as to avoid any confusion in the event both parents die simultaneously. Guardianship of minor children is a major responsibility, and parents should be sure to ask their preferred guardian if they would be willing to care for the children in the event of a tragedy.

* How will the estate assets be transferred to the child? If the parents have no estate plan in place, upon the death of both parents, the child would inherit their share of the parents' estate, and it would be held in a guardianship account. The child would have access to the monies by requesting distributions from the guardian, who would need court approval to spend principal from the guardianship estate. Additionally, once the child turned 18, all assets would be distributed directly to the child regardless of the child’s ability to manage the money. If parents engage in estate planning, they may create a Trust to hold assets passing to a minor child. The parents, via their Will, create a Trust and name a Trustee to manage, invest, and distribute the assets to the child according to the terms of the Trust. The Trust may allow distributions for the child’s health, education, maintenance, and support throughout their life. The trust terminates at some point, and does not automatically end upon the child’s obtaining the age of majority. For example, the Trust can end when the child turns 30. Alternatively, the Trustee may distribute principal in increments based on the age of the child. For instance, the child would be entitled to 1/3 of Trust principal at age 25, another 1/3 at age 30, and the rest at age 35. The Trustee need not be a corporate Trustee, and in the event of a smaller estate, it would make better financial sense to name an individual as Trustee (who may be the same person as the guardian). The individual Trustee could then hire an investment advisor to handle the investment of Trust assets.

Parents of a child with special needs should create a Special Needs Trust to hold assets for the child with special needs. This kind of Trust is typically funded with inheritance monies of the child with special needs, and does not have a payback to the state for medical assistance provided to the child and may not make any distributions that would disqualify the child from received any governmental benefits.

* Who will administer the estate in the event both parents die? The surviving spouse is typically named as Personal Representative, and a successor PR should also be named in the event the spouse is unavailable. A PR must be over the age of 18, and is responsible for gathering the assets of the estate, liquidating and selling any assets, and distributing the assets to the heirs under the Will. Each spouse may name their own successor PR to administer their estate.

To complete the estate plan, parents execute a Power of Attorney and a Directive to Physicians. A power of attorney allows an individual (the "principal") to appoint an agent to act on their behalf for medical and financial matters. The agent is typically the principal’s spouse, and a successor agent may also be named in the document. A Power of Attorney can take effect immediately, giving the agent the authority to act on the spouse’s behalf even if the spouse is able to speak for themselves, and it also applies in the event the principal is unable to speak for themselves. By contrast, a “springing” Power of Attorney only takes effect upon the principal’s incapacity.

A Directive to Physicians sets forth a person’s last wishes in regard to end-of-life situations. This document differs from a medical POA in that the Directive only governs a situation where the declarant is incompetent, and a doctor has certified that the declarant is in a state of permanent unconsciousness or has an end-stage medical condition.

Parents with young children should consider drafting an estate plan to ensure that their estates are administered according to their wishes, and that their children will be cared for financially and be placed with an appropriate guardian. If you have estate planning questions or if we can be of service to you, your family, friends, neighbors, or co-workers, give us a call at 253.858.5434. We represent clients throughout Washington and Idaho.

Will the COVID-19 pandemic affect my personal injury claim?

The coronavirus crisis has devastated our economy in just weeks and closed many courts, prompting many of those injured in auto collisions to ask, "Will COVID-19 affect my personal injury claim?" Although the global pandemic has affected law firms like every other sector of our society, the outbreak will not fundamentally impact your personal injury claim. We are still open for business and accepting new clients, while still following social distancing rules.

WHY YOU SHOULD SEEK LEGAL COUNSEL DURING THE COVID-19 CRISIS. You should not delay your injury claim because of COVID-19. Although your claim may take longer to process than before the outbreak, the law's deadlines on when to file a lawsuit remain in place. You could lose your right to take legal action and recover compensation if you wait. During tough financial times, some people avoid hiring a lawyer. This can be a serious mistake. We expect the insurance companies to fight your claims harder than before the coronavirus outbreak. They are more likely to lowball your claims. At times like this, hiring a lawyer can be more important than ever. Unlike with other legal matters, we represent personal injury clients on a contingent fee basis, meaning we don’t ask for a retainer upfront. We only get paid if we settle your case or a win a jury verdict for you down the line.

We understand the fear as cases of COVID-19 continue to rise. Fortunately, many aspects of the personal injury process can continue online or on the phone and we will continue to work diligently to process your case and to get you the result you deserve.

KEY QUESTIONS ON WHETHER CORONAVIRUS WILL AFFECT YOUR CLAIM.

(1) Will the insurance company settle my claim during this crisis?

Yes. However, you should be aware that the insurance company will be looking at its bottom line. Some insurers try to lowball claimants who don’t fight for their rights. We believe the insurers may become even tougher to deal with. They may drag their offers down further and seek to settle auto collision claims as quickly as possible before you can obtain legal representation.

(2) Am I allowed to file an injury claim during a stay-at-home order?

Yes, the insurance companies are still open for business and should process your claim in their normal manner.

(3) Will coronavirus slow my settlement payment?

The settlement process could be delayed slightly because the insurance companies are operating with fewer people in their offices. They have many people working from home, and this creates some issues with delays. However, the insurance company should still work on your claim.

(4) Will my lawyer continue to work on my case?

We will continue to work on demands, issue letters, and research your case as before the outbreak.

WHY INSURANCE COMPANIES MAY BE HARDER TO DEAL WITH DURING THIS PANDEMIC. Insurance companies make their money off the stock market and other investments. When the economy is in freefall, these sources of money are hit hard. In times like these with the stock market down so dramatically and the economy reeling, they begin to take a very hard line on where they spend their cash. They no longer have the cushion of their investments and quickly being to lose money. This leaves few options for the insurers. They can raise insurance rates, or they can reduce what they pay toward their existing and future claims. This means the insurance companies batten down the hatches as they struggle to maintain profitability. We can expect insurance companies to become much more aggressive in their attempts to settle out at the lowest dollar possible and as quickly as they can. They want to make sure the injured party settles before having a conversation with a lawyer. It is in times like these when having effective counsel is so important. The insurance company is expecting you to settle quickly and at the low amount they determine.

The good news is that the insurance companies don’t dictate the terms. A lawyer can challenge a low insurance company offer. We can file a lawsuit and take your case to trial if necessary. You should not have to settle for less. Although the insurance company may be offering less, your medical bills won’t be any lower than they were before the coronavirus crisis.

THE EFFECT OF THE STATUTE OF LIMITATIONS ON YOUR INJURY CLAIM. Every State has a strict statute of limitations for personal injury claims. In Washington, someone who suffers an injury has three years to file a lawsuit for injuries suffered in an auto collision; in Idaho, that deadline is two years. If you miss the deadline, you lose the right to sue forever. When a lawsuit is filed and the litigation process starts, the court determines a trial date.

Three years seems like a long time but it goes quickly. Your lawyer often must make extensive inquiries to build a case. Don’t leave it until the 11th hour to contact a lawyer. Court closures due to COVID-19 will cause delays in a system that will likely be overburdened when the courts reopen. Contact a lawyer now to talk about your options.

These are unprecedented times. Although millions of Americans are staying at home, don’t let your injury claim suffer. We are open for business and we can talk about your case on the phone or video conference. We expect insurance companies to become more ruthless over the next few months. They are likely to employ more tricks to stop you claiming or to persuade you to accept a low offer. Give us a call at 253.858.5434 for advice.

Get advice from your trusted advisors, like lawyers, accountants, financial planners, and bankers, as you prepare to reopen your small business.

The COVID-19 shutdown has caused financial distress for many small businesses. Some may need to liquidate, several might be candidates for restructuring, and others may open their doors without skipping too many beats. If you suspect your business may need financial assistance when things start returning to normal, you should seek the advice of trusted advisors, such as accountants, lawyers, financial planners, or bankers soon. However, before meeting with a professional you should identify key employees and gather the information necessary to put your business in a position to successfully navigate the times ahead. Taking these steps now should make your journey shorter and less expensive.

First, identify key employees who have access to and otherwise fundamentally understand your business’s financial data and funds flow. These are the people who will be essential in gathering and assembling information that your advisors will need.

Second, identify your trusted professionals. If you don’t have a lawyer, accountant, or financial advisor, set up a few interviews. If you have established relationships with such advisors, then reach out now to schedule appointments for consultations. Understanding your options, both legally and financially, sooner rather than later will be crucial.

Third, prepare for meeting with your advisors.

ASSETS AND INCOME. You should have the company’s balance sheet and income statement for the most recent fiscal year and the current year to date. Recent tax returns and financial projections may also be helpful. If no recent balance sheet is available, then compile a list of real, personal, and intellectual property assets owned by the entity, and include the identity of co-owners of those assets. For personal property, categories might include “equipment,” “furniture,” “fixtures,” etc., and should incorporate total estimated liquidation sale value for each category. For any item with an estimated liquidation sale value of more than $600, the items should be listed separately. Recent appraisals, accounts receivable, and work-in-progress listings, machine and equipment listings or depreciation schedules, and inventory figures should also be provided.

LIABILITIES AND LIENS. You will also need a list of all creditors for the company, including banks and other lenders, franchisees, land contract vendors, landlords, taxing authorities, and vendors, with addresses and amounts owed. An accounts payable ledger may be the best place to start in preparing this list. The list should contain each person or company to whom the entity owes money, even if it is jointly obligated to the creditor with someone else. If any creditor has commenced legal or collection action, gather any papers received related to that action. Copies of communications from taxing authorities, especially tax lien documents, will also be critical.

It will be important to provide copies of all documents which evidence debts owed and the security which may be held to secure such debts, including notes, security agreements, mortgages and land contracts, as well as personal guarantees (along with any related security agreements or mortgages) which may have been given to any creditor for debts owed. Gather office or business premises leases, equipment leases, franchise agreements, supply contracts, purchase orders, license agreements, and other critical contracts. You should also be prepared to give your advisors permission to complete a search of state records to confirm the status of any liens against the company’s assets.

RECENT TRANSFERS AND PAYMENTS. You should compile a list of any creditors which have been paid more than $6,000 by the company within the last 90 days, together with the total amounts paid to these creditors during this period, as well as a list of any transfers totaling more than $6,000 made by the company to or on behalf of any officer, board member, shareholder, member or owner (or their family members) within the last two years. Bank statements and internal check registers for the last six months will also be helpful.

OWNERS AND INSIDERS. Ownership information for the business entity, including owner names, addresses, and percentage of ownership, will also be relevant, as well as copies of any insider or owner loan documents. You should also be prepared to identify all directors and officers. And of course, if there are any other facts or documents you feel are relevant to the company’s current financial condition, get that ready to present with everything else.

If you are experiencing liquidity issues, pressure from lenders, or other financial strain, and would like to explore what kinds of legal options may be available to assist your business in recovering from the damage COVID-19 shutdowns may have caused, we can provide guidance. Please contact us at 253.858.5434 if you would like to schedule an appointment.

Does your small business need legal advice in developing workplace health and safety policies to comply with Phase 2 of the State's reopening plan?

If your small business is a "professional service provider" as defined in Washington's "Safe Start" reopening plan and you need legal advice in developing workplace policies and practices to comply with the State Dept. of Labor & Industries' and the Dept. of Health's regulations for reopening in Phase 2, give us a call at 253.858.5434 to see how we can help!

June 4, 2020 Message from the Washington State Supreme Court

Yesterday, all nine Justices of the Washington State Supreme Court signed the statement below.

June 4, 2020
Dear Members of the Judiciary and the Legal Community:

We are compelled by recent events to join other state supreme courts around the nation in addressing our legal community.

The devaluation and degradation of black lives is not a recent event. It is a persistent and systemic injustice that predates this nation’s founding. But recent events have brought to the forefront of our collective consciousness a painful fact that is, for too many of our citizens, common knowledge: the injustices faced by black Americans are not relics of the past. We continue to see racialized policing and the overrepresentation of black Americans in every stage of our criminal and juvenile justice systems. Our institutions remain affected by the vestiges of slavery: Jim Crow laws that were never dismantled and racist court decisions that were never disavowed.

The legal community must recognize that we all bear responsibility for this on-going injustice, and that we are capable of taking steps to address it, if only we have the courage and the will. The injustice still plaguing our country has its roots in the individual and collective actions of many, and it cannot be addressed without the individual and collective actions of us all.

As judges, we must recognize the role we have played in devaluing black lives. This very court once held that a cemetery could lawfully deny grieving black parents the right to bury their infant. We cannot undo this wrong, but we can recognize our ability to do better in the future. We can develop a greater awareness of our own conscious and unconscious biases in order to make just decisions in individual cases, and we can administer justice and support court rules in a way that brings greater racial justice to our system as a whole.

As lawyers and members of the bar, we must recognize the harms that are caused when meritorious claims go unaddressed due to systemic inequities or the lack of financial, personal, or systemic support. And we must also recognize that this is not how a justice system must operate. Too often in the legal profession, we feel bound by tradition and the way things have “always” been. We must remember that even the most venerable precedent must be struck down when it is incorrect and harmful. The systemic oppression of black Americans is not merely incorrect and harmful; it is shameful and deadly.

Finally, as individuals, we must recognize that systemic racial injustice against black Americans is not an omnipresent specter that will inevitably persist. It is the collective product of each of our individual actions—every action, every day. It is only by carefully reflecting on our actions, taking individual responsibility for them, and constantly striving for better that we can address the shameful legacy we inherit. We call on every member of our legal community to reflect on this moment and ask ourselves how we may work together to eradicate racism.

As we lean in to do this hard and necessary work, may we also remember to support our black colleagues by lifting their voices. Listening to and acknowledging their experiences will enrich and inform our shared cause of dismantling systemic racism.

We go by the title of “Justice” and we reaffirm our deepest level of commitment to achieving justice by ending racism. We urge you to join us in these efforts. This is our moral imperative.

Sincerely,
Debra L. Stephens, Chief Justice
Susan Owens, Justice
Mary I. Yu, Justice
Charles W. Johnson, Justice
Steven C. González, Justice
Raquel Montoya-Lewis, Justice
Barbara A. Madsen, Justice
Sheryl Gordon McCloud, Justice
G. Helen Whitener, Justice

As we prepare to move our office to the historic Gig Harbor waterfront in December, we're moving into the 21st Century and going paperless!

Well, it's happening. We're moving into the 21st Century. As we begin preparing to move our office to the historic Gig Harbor waterfront in December, we're moving toward a paperless practice. Our 10+ years' worth of closed files currently stored in boxes (and boxes and boxes) in our office are being scanned and moved to a digital format. This will help increase our mobility, flexibility, and online data backup, all to the benefit of our clients. If you're a client of ours and have questions about the status of your file, active or closed, give us a call at 253.858.5434.

Estate Planning Opportunities in Turbulent Times of Low Interest Rates, Low Valuations on Assets, and Down Markets

Low interest rates, low valuations on assets, down markets - current conditions may feel turbulent for investors, but they offer some excellent estate planning opportunities. And with federal gift and estate exemptions higher than they've ever been, it's time to think about gifting. Here are some strategies that may pay off big as the markets and economy recover.

ANNUAL EXCLUSION GIFTING. Make your annual exclusion gifts early and use distressed stock instead of cash. This could include funding 529 savings plans for children and grandchildren.

GRANTOR RETAINED ANNUITY TRUSTS (GRATs). GRATs are a type of Trust where the Grantor (the person establishing the Trust) is repaid the full value of the original assets contributed over a certain number of years. The repayment to the Grantor is tied to an interest rate, which is historically low right now at 0.8%. Any appreciation above that rate will pass to the Grantor's beneficiaries - both estate and gift tax free.

SALES TO INTENTIONALLY DEFECTIVE GRANTOR TRUSTS (IDGTs). IDGTs are a type of Trust disregarded by the IRS so the Grantor is treated as the owner. With this planning technique, a Grantor sells an asset to an IDGT on a note using a low applicable federal rate (AFR). No gain is recognized because the Grantor is still considered the owner while appreciation passes on to the Trust beneficiaries. Sales to IDGTs require more steps than a GRAT, but also offer more flexibility on repayment.

CHARITABLE LEAD ANNUITY TRUSTS (CLATs). A CLAT is a "split interest Trust." A charity receives an annuity payment for a set number of years. After the charity's term ends, the remaining assets, and any appreciation, goes to the remainder beneficiaries (usually family members of the Grantor). When interest rates are low, CLATs can be an effective strategy to pass assets to the next generation while also making a charitable donation.

Not only is it a good time to undertake new planning, but 2020 also presents an opportunity to revisit previous planning.

REFINANCING INTRA-FAMILY LOANS. With lower interest rates, it is a good time to review any outstanding intra-family loans and determine if refinancing is appropriate.

REVISIT EXISTING TRUSTS. Already have a GRAT or IDGT? It's a great time to look at those trusts and determine if anything can be done to enhance their performance. For example, if you retained the ability to replace the assets in a Trust for other assets of the same value, known as a "swap power," it may make sense to utilize that option now. If you have an Irrevocable Life Insurance Trust (ILIT) with a guaranteed product, it's important to adjust assumptions on illustrations so you have an updated review of how the policy is performing.

In the current economic climate it's advantageous to review your estate planning options. Effective estate planning can help you feel more confident about the future, knowing your loved ones will be taken care of and that you are leaving behind your desired legacy. Give us a call at 253.858.5434 if we can be of service to you, your family, friends, neighbors, or co-workers. We proudly represent clients throughout Washington and Idaho.

The legal process involved in effectuating your Will and making sure things go according to your estate plan is called probate.

A Will, Trust, and other estate planning vehicles can clearly direct what happens to your assets and how they are distributed after you pass away. But that doesn’t happen automatically. The legal process involved in effectuating your wishes and ensuring that things go according to plan is called probate. It is a court proceeding focused on identifying, gathering, and distributing your assets and addressing any of your outstanding liabilities after you die.

If you have a valid Will, the probate process is still required in most cases to pass ownership of probate assets to your heirs and beneficiaries. For individuals who die without a Will, probate is needed to legally convey assets under Washington’s and Idaho's laws of intestate succession.

Even with the best estate planning documents and harmonious relationships between beneficiaries, probate can still be a confusing and lengthy process for those unfamiliar with the law or who lack experience managing complex portfolios of assets. If your Personal Representative (or PR, formerly called an "Executor") doesn’t know what they are doing or if disputes arise among family members, creditors, or others, the process can descend into a costly and frustrating ordeal.

PRs and families who have recently lost a loved one can hire our law firm to guide them through the probate process with efficiency, thoroughness, and finality. We assist with the preparation and filing of initial petitions and other necessary documents with the court and provide accessible and responsive counsel to those given the responsibility of managing an estate. Our extensive experience allows us to bring matters to a conclusion as quickly and cost-effectively as possible so family members can move forward with their lives

Our comprehensive probate representation includes:

* Gathering assets and information about beneficiaries
* Determining debts and other claims against the estate, and paying legitimate claims
* Distributing the estate to beneficiaries under established directions
* Assisting with the calculation and payment of all taxes and preparation estate tax returns
* Managing the estate’s assets
* Overseeing payment of funeral and related expenses
* Locating next of kin
* Working with retirement benefits administrators

The last thing grieving families need after a loved one’s passing is the burden of navigating an unfamiliar and intimidating court process. We'll help take that weight off their shoulders, providing them with the compassionate and clear counsel that can help them through a difficult time.

If you or a loved one is looking for legal advice and representation in the administration of an estate or are involved in a probate dispute, we welcome the opportunity to be of service. Please call us at 253.858.5434 or contact us online to arrange for a consultation.

Have a safe, healthy, and grateful Memorial Day!

Today, we honor the brave men and women who sacrificed everything for something greater than themselves. Our great nation is forever in their debt. ‪May we honor their sacrifices by living the values they fought to defend - and in service of one another. Have a safe, healthy, and grateful Memorial Day!

With all the trouble the coronavirus crisis is causing families and our overall well-being, now could be a good time to review your estate planning needs.

Coronavirus has proven to be a major threat to our overall well-being. And with all the trouble it’s caused to families, now could be a good time to review your estate planning needs. It’s something that many people may be overlooking, either accidentally or on purpose, as this economic and health crisis plays out. Nevertheless, knowing that your assets are going where you intend them can bring you peace of mind amid the chaos.

One of the most fundamental choices you can make as you’re thinking about how to pass your assets on to heirs is whether you hold assets in a Revocable Living Trust or more simply give them via a Will. Both approaches have advantages, though Trusts can provide some additional benefits.

REVOCABLE LIVING TRUST vs. WILL: HOW TO CHOOSE IN THE CORONAVIRUS ERA.

1. A Will can be set up faster and cheaper.

A Will can be set up faster than a trust, making a difference in urgent circumstances, whereas with a Living Trust, you still need to take care of the funding aspect, which requires you to retitle any assets that you want protected by the Trust. It may be impossible or at least very difficult to retitle your financial accounts during the pandemic, especially if you have to go to banks or other institutions in person. And if you can’t move the assets to the trust, you’ve lost all its benefit. Without the proper titling of assets, you still have to go through probate and you just spent all that money and time creating the Trust.

However, one downside is that Wills have to be signed and witnessed in person, although some states have temporarily allowed video conferencing to comply with social distancing and limit the spread of the coronavirus.

2. A Trust is better for an incapacitated person.

A Living Trust offers a key benefit if someone becomes incapacitated due to illness. To that end, Trusts are usually accompanied by two other legal documents: a medical advance directive and a durable power of attorney. These documents allow people to make medical decisions on your behalf and manage your finances if you become incapacitated.

If you were to become disabled by a complication due to COVID-19, a Revocable Trust could be advantageous over a Will. Your successor trustee can step in and handle your assets while you’re alive but unable to do so, and this isn’t an option with a Will.

3. Trusts may be better with backed-up courts.

With coronavirus stifling the court system, and therefore probate, the process of settling a Will could take much longer than it already requires. So a Trust may be a better solution because it allows you to avoid probate.

BOTTOM LINE. While it can be easy to put off issues such as estate planning because of the sensitive emotional issues involved, not to mention the family drama that can be stirred up, it’s imperative that you have a plan in place, especially given the sudden effects of the coronavirus. Always remember that someone has to have the mental capacity to create many legal documents, and waiting too long can be problematic. And given the complex nature of estate planning, you need a lawyer for all but the simplest operations if you want to ensure that your assets are distributed according to your wishes. It might be expensive, but remember, with an estate plan, you can buy expensive and cry once or buy cheap and cry forever. Isn’t that often true with many things in life?

Give us a call at 253.858.5434 to talk about your and your family's estate planning needs.

My loved one recently passed away. What do I do if I received a stimulus payment for my deceased loved one?

The U.S. Treasury Department is using 2018 and 2019 tax returns to determine who gets stimulus payments. This method of determining who should receive stimulus checks has resulted in some payments going to taxpayers that are deceased. If you have received a stimulus check this week for a deceased person, you are going to be required to return the money. The IRS has not yet issued guidance regarding how heirs should pay these funds back or how they intend to collect. This may be done by reversing a direct deposit or by mailing a new letter requesting the funds back. We will be closely following IRS guidance for any updates on this situation.

The Washington State Supreme Court's Most Recent Order on Courthouse Operations

On April 29, the Washington State Supreme Court issued a new Order extending its previous Orders regarding court operations. All civil trials are suspended until at least July 6. Non-emergency civil matters *may* be continued to after June 1, at the trial judge’s discretion, but courts *should* begin to hear non-emergency civil matters as long as hearings can appropriately be conducted by phone, video, or other remote means. Courts shall continue to prioritize and hear emergency civil matters that can be heard by phone, video, or other remote means, or in person with *strict observance* of social distancing and other public health measures. There is still no official guidance on the definition of “emergency,” and we still presume that the rules for civil matters (as opposed to criminal or juvenile offender matters) also apply to trust, estate, probate, guardianship, TEDRA, and family law matters.

I was recently injured in an auto collision. How can the current coronavirus crisis affect my personal injury claim?

While the coronavirus surges through the U.S., many people will continue to suffer injuries in auto collisions. An injured victim still can bring a personal injury claim to pursue compensation for their injuries during the COVID-19 outbreak. However, you may want to be aware of certain issues that may affect your claim.

One of these issues involves the court system, which has been largely shut down until the crisis ends. A personal injury case thus may not be resolved as efficiently as it would be under normal conditions. Almost all personal injury cases settle before going to trial, but many cases proceed through at least one hearing in a court before the parties reach a settlement. Therefore, some injured people may face delays in getting their case resolved.

The financial stress caused by the COVID-19 outbreak may motivate many personal injury claimants to settle a case as soon as possible. A victim may urgently need the money from their settlement, especially if they have lost their job. In our recent experience, some insurance companies are exploiting this situation by offering an unfairly low settlement. A victim who has suffered serious injuries should think twice before accepting the first offer from an insurance company, as it likely will not cover the full scope of their losses.

If a lawsuit is started, a victim also may expect stiffer resistance than usual from an insurance company. Since the insurance industry expects profits to decline as the economy struggles, an insurance company will be motivated to minimize the value of a claim and protect their bottom line more aggressively than ever. This could mean that more personal injury cases go to trial, or proceed further through litigation.

In some cases, collecting an award from a defendant may be more challenging than usual. Many businesses are suffering from economic pressure during the outbreak, and a business that is not insured may not be able to pay. If the defendant files for bankruptcy, an injury victim will need to wait a long time to collect their settlement or judgment award, and they may never receive the full amount.

To maximize a compensation award in a personal injury case, a claimant needs to receive medical treatment as recommended by their health care providers. This is because medical documentation is critical to proving the extent of a claimant's injuries and expenses. During the COVID-19 outbreak, many people will feel reluctant to visit a doctor’s office for treatment, due to concerns about contracting the virus. These concerns are reasonable, but it is still true that getting treatment is important to the value of a claim. A victim should try to keep their medical appointments to the extent possible, while maintaining social distancing practices and following CDC recommendations.

Since health care facilities are currently saturated with COVID-19 patients, an injured person may need to wait longer than usual to receive treatment. This may mean that they should wait to file or settle their case. They will not know the full scope of their damages until they complete their treatment and reach maximum medical improvement.

Due to deepening economic hardship, some drivers may not keep up with paying their insurance premiums. This could result in the loss of coverage, which could complicate the situation of a victim after an auto collision. A victim who is struck by an uninsured or underinsured driver may not be able to recover compensation from the driver’s personal assets. Their only option may involve pursuing benefits through their own UIM policy with their insurer. In these cases, a victim should remember that their insurer is an adverse party and likely will not pay a claim without resistance. First-party claims may be just as contested as third-party claims, and the assistance of a lawyer will be just as critical.

If you, a friend, family member, neighbor, or co-worker have been injured in an auto collision and need legal advice, give us a call at 253.858.5434 for a free initial consultation today.

The CARES Act provides financial relief for nonprofit organizations and increased charitable giving incentives for individuals and corporations.

COVID-19 and the necessary public health measures to fight it are having a huge impact on the normal operations of nonprofit organizations in Washington, Idaho, and across the country. From shutting down operations to the sudden surge in needs for vulnerable communities, nonprofits were not able to effectively plan for these rapid changes. Supporting basic needs, like food and shelter, has become harder as necessary public health measures lead to business shut-downs, layoffs, reduced volunteer staff, and greater restrictions due to social distancing. Meanwhile, the need for these basic supports is rapidly increasing. Many nonprofits, including arts and culture venues and youth programs, are unable to operate at all under the stay-at-home orders.

Donors can make a positive difference by giving generously to the organizations and causes that matter to them. The CARES Act provides both financial relief for nonprofits and increased charitable giving incentives for individuals and corporations.

Charitable giving incentives include:

* A one-time, above-the-line deduction for cash charitable contributions of up to $300. The incentive applies to contributions made in 2020 and can be claimed on tax forms next year. However, the new deduction does not apply to noncash gifts or to gifts contributed to donor advised funds.

* A temporary increase of income limits for cash contributions by individual and corporate donors. Individual taxpayers who itemize their deductions can deduct up to 100% of their adjusted gross income (AGI) in cash contributions (raised from 60%). In addition, corporations can deduct up to 25% of taxable income (from 10%).

* Waivers for 2020 required minimum distributions (RMDs). Under the new rule, in 2020 you don’t have to take a RMD, which could reduce your 2020 tax bill. Even though RMDs are waived, you can still use your IRA to get a tax break on giving to charity. If you normally give to charity, consider a qualified charitable distribution (QCD) from your IRA. The funds are directly transferred from your IRA to a charity and excluded from income. However, only IRA owners and beneficiaries who are age 70 1/2 or older qualify for this.

If you have questions about how the CARES Act affects nonprofit organizations and your donations to them, give us a call at 253.858.5434.