Owning real estate in more than one state can require multiple probate proceedings in multiple states (called "ancillary probate"). We can help you avoid that.

What’s worse than having to go through formal probate proceeding after a loved one dies? Conducting two such court proceedings—in different states.

Two probates can be required if someone lived in one state but left real estate in another. If that’s the case, there may need to be a probate in each state. That’s because real estate is always governed by the law of the state in which it’s situated, not the law of the state where the owner lives.

Example: Julie is a resident of the great State of Washington; she lives here and owns a home and other assets here. She also owns a vacation home in Arizona, which she and her husband bought together years ago. Now that her husband has passed, the Arizona property belongs to Julie alone. At her death, there will probably need to be an Arizona probate proceeding before the property can be transferred to Julie’s daughter, who will inherit it.

Probate in a second (or third) state is called “ancillary probate,” and for the Personal Representative of the deceased person’s estate (and the heirs and beneficiaries), it means more bother and expense. The PR will probably need to find a lawyer in the other state to handle the probate.

Probate is begun first in the deceased person’s state of residence. (This is sometimes called the “domiciliary probate” because it takes place where the deceased person had their permanent home.) Then a second probate case (the ancillary probate) is opened where the out-of-state real estate is located. Once a Will has been accepted by the probate court in the state of residence, generally it will be accepted by another state without further proof. It’s called a “foreign Will.”

If you want to spare your family the expense and headache of an ancillary probate proceeding after your death, make avoiding probate for out-of-state real estate a priority. You’ll probably have several options, depending on state law. They may include:

* Owning the property with someone else in joint tenancy, tenancy by the entirety, or community property with right of survivorship.
* Putting the property in a revocable living trust.
* Recording a transfer-on-death deed for the property.

If you own real estate in more than one state and have questions about avoiding the need for an ancillary probate, give us a call at 253.858.5434 to set up an appointment today.

While estate planning is important for married couples, it is arguably even more necessary for couples that live together without getting married.

While estate planning is important for married couples, it is arguably even more necessary for couples that live together without getting married. Without an estate plan, unmarried couples won’t be able to make end-of-life decisions or inherit from each other.

Estate planning serves two main functions: determining who can make decisions for you if you become incapacitated and who gets your assets when you die. There are laws in place to protect spouses in couples that have failed to plan by governing the distribution of property in the event of death. If you do not have a Will, property will pass to your spouse and children, or to parents if you die without a spouse or children.

But there are no laws in place to protect unmarried partners. Without a solid estate plan, your partner may be shut out of the decision making and the inheritance. The following are the essential estate planning steps that can help unmarried couples:

JOINT OWNERSHIP. One way to make sure property passes to an unmarried partner is to own the property jointly, with right of survivorship. If one joint tenant dies, his or her interest immediately ceases to exist and the remaining joint tenants own the entire property. This is also a good way to avoid probate.

BENEFICIARY DESINGATIONS. Make sure to review the beneficiary designations on bank accounts, retirement funds, and life insurance to make sure your partner is named as the beneficiary (if that is what you want). Your partner will not have access to any of those accounts without a specific beneficiary designation.

DURABLE POWER OF ATTORNEY. This document appoints one or more people to act for you on financial and legal matters in the event of your incapacity. Without it, if you become disabled or even unable to manage your affairs for a period of time, your finances could become disordered and your bills not paid, and this would place a greater burden on your partner. Your partner might have to go to court to seek the appointment of a guardian, which takes time and money, all of which can be avoided through a simple document.

HEALTH CARE POWER OF ATTORNEY. A health care power of attorney appoints an agent to make health care decisions for you when you can't do so for yourself, whether permanently or temporarily. Again, without this document in place, your partner might be shut out by other family members or forced to go to court to be appointed guardian. If it is important for all of your family members to be able to communicate with health care providers, a broad HIPAA release--named for the Health Insurance Portability and Accountability Act (HIPAA) of 1996--will permit medical personnel to share information with anyone and everyone you name, not limiting this function to your health care agent.

WILL. Your Will says who will get your property after your death. If you have minor children, your Will permits you to name their guardians in the event of your death. Second, it allows you to pick your Personal Representative to take care of everything having to do with your estate, including distributing your possessions, paying your final bills, filing your final tax return, and closing out your accounts. It's best that you choose who serves in this role.

REVOCABLE LIVING TRUST. A Revocable Living Trust can be especially important for unmarried couples. It permits the person you name to manage your financial affairs for you as well as to avoid probate. You can name one or more people to serve as co-trustee with you so that you can work together on your finances. This allows them to seamlessly take over in the event of your incapacity.

We can help you create the estate plan that is right for you and your partner. Give us call at 253.858.5434 to set up an appointment today.

What are UIM and PIP coverages on your auto insurance policy, and why are they important to have?

Even though the law says that every driver should carry at least some auto insurance, in reality, there are thousands of drivers on our roads who are not insured at all. In addition, thousands more only carry the bare minimum insurance. What this means to you is, if you are injured in an auto collision, you may have to use your own insurance to pay your medical bills, lost wages, lost ability to work, and other damages. But what type of insurance should you carry to give yourself the protection you need?

Due to the many uninsured and underinsured drivers out there, virtually every lawyer will recommend that you carry a significant amount of uninsured motorist or underinsured motorist (UIM) protection insurance. By purchasing these policies—which often only cost a few dollars a month—you will have an insurance policy to pursue compensation for your injuries if a driver with no insurance (or little insurance) hits you.

Although it is not mandatory in Washington, we also strongly recommend that you purchase personal injury protection insurance. Personal injury protection, or PIP, insurance covers your medical expenses and lost wages, up to the policy limits, no matter who is at fault in the collision. Therefore, if you are injured in a car crash, your own PIP insurance would be the first policy to pay toward your medical bills.

One possible drawback to these insurance requirements is that most people only buy the minimum of PIP, usually $10,000, and that amount does not go very far when I comes to medical bills. Often your emergency room bills alone will total more than $10,000. So once your PIP insurance is gone, what is the next step? If the collision was the other driver’s fault, then the at-fault driver’s insurance (what lawyers call "3rd party insurance") likely would be the next policy in line to compensate you for your injuries. However, if the at-fault driver is not insured, you are out of luck unless you carry UIM insurance.

With UIM insurance, claims that exceed your own PIP and the at-fault driver’s insurance will be covered up to the limits of your UIM policy. Often, UIM policies are one of the only coverages available for personal injury lawyers when they make a claim for their clients.

If you have questions about the insurance policies that may be available in your case—including PIP and UIM coverage—please contact us at 253.858.5434 for a free initial consultation.

Estates under $11.58 million ($23.16 million for married couples) are not subject to estate tax. So is charitable planning still important?

Estates that are under $11.58 million ($23.16 million for married couples) are not subject to the federal estate tax. So is charitable planning still important? The desire to help worthwhile causes remains the overriding motivation for making charitable bequests or funding lifetime gifts. Charitable gifts may still save taxes where donors leave charities items of income in respect of a decedent (IRD) (especially retirement accounts) or own property in states that levy inheritance taxes. Whether or not taxes are a concern, we always ask clients if they wish to include gifts to charity in their estate plans. Charitable remainder trusts and gift annuities can assist both charities and family members. Clients who can't itemize may find that lifetime remainder trusts or gift annuities allow them to exceed the standard deduction while retaining payments for life from their gifts. Many donors find satisfaction in continuing their support for their favorite charities.

If you have questions about including charitable giving as part of your estate plan, please give us a call at 253.858.5434 to set up an appointment. We represent clients throughout Washington and Idaho.

Estate planning for blended families can get complicated. We can help.

Estate planning for blended families can get complicated. Let's say Client A and Client B are getting married. A has two kids from a prior relationship and B has one kid from a prior relationship. They plan to have kids together. A receives child support from a former spouse. A’s mother also lives with them and helps care for the children. B’s only child works in B’s business and both A and B hope their joint children will one day join the family business as well. A and B have a lot to discuss...

The first thing we would tell A and B about their estate plans is “don’t try to plan for the next 20 years right now.” Trying to plan for too many “what ifs” can cause analysis paralysis. The best practice is to get a plan in place that addresses the “what ifs” of the next three to five years. That’s particularly true for A and B—newlyweds with a newly blended family. That’s why Trusts are living documents—they need to be reviewed and adjusted over time as families, circumstances, and laws change. As long as you are alive and competent, you can amend your Trust. And if you don’t, well, you’ve put the right plan in place at the right time.

Currently, there are minor children involved. Were A to die, A may want or need to plan for the support and care of the children rather than B, who is likely self-sufficient and not dependent on A’s support at this early stage in their relationship. Later, when A’s children are grown and gone, A is more likely to want or need to provide for B.

B currently has to think about B’s business. In the event of B’s death, B may want to see B’s child carry on the business. If A needs an income stream from B’s estate however, an outright transfer of the business might not work. B’s options would include keeping the business owned by a Trust with income paid to A, but with B’s child still running the business and getting a salary. Or, perhaps B can obtain life insurance that would pay A and allow the business to be transferred to B's child.

Life insurance or some other income stream (retirement plans, annuities, etc.) of B are useful here. If A is significantly younger than B, or close in age to B’s child, and B plans to provide for A first, then B’s child, there could be tension. A plan that has a child “waiting around for step-parent to die” can be an invitation to discord (take a look at the step-parent vs. children disputes of celebrities like Casey Kasem, Robin Williams, and Glen Campbell).

If B has a stream of income that can be directed to either B’s child or A with the remaining assets going to the other of them, that can reduce tension. This may give the best hope for a continuing relationship between a child and a step-parent.
In the event of A’s death or incapacity, does the surviving biological parent (e.g. A’s ex spouse) have custody of the minor children? If so, A may not be able to plan for B’s involvement with the children, but perhaps leaving money in Trust with B as the Trustee will at least assure some contact and oversight. If not, A will need to carefully consider whether A’s mother or B should be named guardian of the children.

At a minimum, A will want to get powers of attorney and health care directives for minors that allow for A’s mother and B to take care of the children in an emergency, including making health care decisions for the children if A is not able to.

In the unlikely event A and B should die together, who gets what and when requires careful analysis.

A’s children are younger than B’s one child, and if they have additional children in the future, the age gap will be greater. A and B can consider a “pot trust” that holds all assets in one big pot for the benefit of all children until the youngest child reaches a certain age or graduates from college. The Trustee makes distribution for “health, education, support, and maintenance” of all the children, but is not required to do so equally. This gives the youngest child the same advantages as the older children for whom college, a car, perhaps a wedding, was already paid for prior to their parents’ passing.

When the youngest child reaches the stated age, the trust can be divided into shares for the children and distributed outright or over time when each child hits a certain age. The size of those shares is another area for discussion.

Does B’s child get half and A’s children split the other half? If A and B have a child together does that child get a portion of each half? The short-term answer is likely to be much different than the answer 20 years from now.

The decisions to be made will necessarily take into consideration whether there is a large disparity between the assets of A and B, and there are many formulas and approaches to deciding what’s “fair.”

We would say to A and B what we often say to clients: This may be the first time you’ve had to design your estate plan, but your lawyer has done hundreds if not thousands of plans. No matter how complicated you may think your family is, it’s our job to help you figure out what works best for your family, to provide some options for you, and get it all documented.
Then A and B can concentrate on the fun parts of their upcoming Brady Bunch life together. And we’d also say congratulations and best wishes! And we’ll see you again in three to five years.

If you have estate planning questions, give us call at 253.858.5434. We represent clients throughout Washington and Idaho and are available to meet in person, by phone, or via video conference.

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!