Your estate plan isn't just a "set it and forget it" thing. You should review your plan every few years to ensure that it is current and reflects any changes in your family, assets, or goals.

One of the most common misconceptions about estate planning is that you can “set it and forget it”—that is, that you can make an estate plan and then just sit back and relax. Actually, it’s incredibly important to be vigilant, ensuring that your estate plan is updated to reflect any changes in your family, changes to your assets, or changes to your estate planning goals. We generally recommend that you sit down and review your estate plan every three or four years, making changes as needed. Additionally, update your estate plan in any of the following scenarios.

(1) You relocate to a new state. Estate planning laws are not national. In fact, they can vary significantly from one state to the next. So, while you may have an estate plan that’s perfectly suited to Washington, moving to New York may require you to make some changes. Any time you relocate to a new state, make sure you reach out to a local estate planning lawyer for help bringing your estate plan up to speed.

(2) You have major changes to your family. One of the main purposes of estate planning is to leave a legacy for your family, and to ensure that the people you love are taken care of after you die—but what if that list of people changes? Specifically, it’s wise to change your estate plan if:

* You get married
* You get divorced
* A child or grandchild is born or adopted
* Your spouse dies

In any of these scenarios, make sure you meet with your lawyer to make the necessary changes to your legal documents.

(3) You have major changes to your assets or liabilities. You should also update your estate plan if the estate itself changes—and that means major changes to either your assets or liabilities. For example, if you buy or sell real estate, come into a large sum of money, lose a large sum of money, or start or purchase a business, those are all occasions on which to revisit your estate plan. And, if you accrue a lot of debts, that’s also a good reason to review your legal documents.

(4) You need to choose a new beneficiary or Personal Representative. Say you have named an individual to serve as the PR of your estate—perhaps a friend who you know to be a responsible and trustworthy person. But what if that individual moves out of state? Or you simply lose contact? And what happens if the named PR dies? In any of these cases, you will want to revise your estate plan. And this is true not just of the PR, but also potential trustees, beneficiaries, etc.

(5) Your retirement savings plans change. It’s not uncommon for estate plans to encompass 401(k)s, IRAs, and other retirement savings vehicles—but what happens if those retirement savings vehicles are dissolved or changed? For example, what happens if you roll over your 401(k) into an IRA? Any kind of change to your retirement accounts is reason enough to sit down with your lawyer and review your documents.

Proper estate planning requires vigilance, and a willingness to look anew at your estate plans every few years or so. Additionally, make updates any time you have big life changes. We are around to help you revise your estate plan as needed. To schedule a conversation about your estate planning needs, reach out to us at 253.858.5434.

When you've been hurt in an auto collision, navigating the legal process and dealing with insurance companies can be overwhelming. That's where we can help.

When auto collisions happen, the injuries can be catastrophic, but even seemingly minor injuries can disrupt an injured person’s life and turn their world upside down. In addition to the physical pain and emotional distress you experience, you may also face unexpected costs or be unable to work. As the injured victim, you may be able to take legal action in order to get reimbursed for these damages. But navigating the legal process and dealing with insurance companies can be overwhelming. That’s where we can help.

Insurance companies profit by paying as little as possible to automobile policyholders and car collision victims. Never accept an offer from the insurance company without first speaking with a lawyer who will protect your legal rights. As your legal counsel, we will guide you through the legal process and help ensure that you get the compensation you deserve.

At our law firm, we help auto collision victims file personal injury lawsuits to recover compensation for:

* Medical bills
* Rehabilitation and physical therapy
* Long-term care
* Lost wages
* Lost earning capacity
* Pain and suffering
* Emotional distress

We also help our clients pursue wrongful death claims against at-fault drivers in order to get justice for their loved ones and provide future security for their families. In addition to people injured in auto collisions, we represent victims of bicycle and motorcycle crashes, as well as pedestrians who have been hit by a car. If we can be of service to you, your family, friends, neighbors, or co-workers, give us a call at 253.858.5434 to set up an appointment today.

Probate and estate administration can be tricky and complicated. We are dedicated to making complicated situations uncomplicated.

Probate and estate administration can be tricky and complicated but we are dedicated to making complicated situations uncomplicated.

WHAT IS PROBATE? Probate is the legal process by which the court formally recognizes a deceased person’s Will (if there is a Will). The court also appoints a Personal Representative (PR) of the estate to wind up the decedent’s affairs. The PR must inventory and value the decedent’s property, and then make arrangement to pay the decedent’s debts before distributing the remaining property to the beneficiaries as directed by the Will or state laws if there is no Will. Probate can be accomplished in a matter of months, or may take years, depending on the nature of the decedent’s estate, claims against the estate, and the actions of the beneficiaries.

THE PROBATE PROCESS:

(1) Appointment – The nominated PR or person with priority to be PR files with the court a petition for probate of the Will and the petitioner’s appointment as PR.

(2) Acceptance and Letters – The court reviews the petition, verifies the Will was properly executed and supported by testimony as to its validity, any required formalities with regard to appointment were followed, and then orders that the petitioner is appointed as PR and that Letters Testamentary be issued.

(3) Inventory – The PR takes stock and determines the appropriate value of the decedent’s property.

(4) Notice to Creditors – Generally, it is advisable to publish a notice to creditors. This reduces the time the creditors have to file a claim against the decedent’s estate. Notice must also be mailed to the reasonably ascertainable creditors.

(5) Payment of Debts and Taxes – Properly presented creditor claims, as well as the decedent’s final income taxes and any estate taxes, must be paid. An estate without sufficient funds to pay all of a decedent’s debts must follow state specific rules as to the priority of claims against the estate.

(6) Final Distribution and Closing – The PR arranges for final distribution to the estate’s beneficiaries and obtains receipts for those distributions. After the final administrative matters are complete, the PR files to close the estate. Depending on the circumstance, you may be required to petition the court for approval of the final distributions as proposed.

IS PROBATE NECESSARY? The laws of probate are different from state to state, so it is a good idea to get local advice as to whether probate is necessary in your situation. Our law firm works in Washington and Idaho, both of which have mechanisms to simplify probate or provide alternative procedures for certain situation. For example, in Idaho, a spouse that is the sole heir of a decedent may petition the court for summary administration. Summary administration allows title to the decedent’s property to pass to the surviving spouse after a single hearing. However, even such a process can be waylaid by intervening parties.

Probate is most costly when the beneficiaries disagree about the administration and distribution of the estate. A surviving spouse attempting summary administration may discover that the decedent spouse had separate property that was unknown to the survivor. An heir entitled to a portion of that separate property may cause the need for probate rather than summary administration. Similarly, an heir or beneficiary may dispute the validity of a Will submitted to probate, or may take issue with the way in which the PR is managing an estate, the expenses incurred, the PR’s compensation, or may claim that they are due a larger share because of a promise made by the decedent, or just because the person feels entitled to more. Disputes such as these cause the need for more legal work, and increased legal fees, to settle the claims.

ARE THE ASSETS SUBJECT TO PROBATE? Not all assets are subject to probate. Assets like retirement accounts or life insurance policies may pass the associated property to a designated beneficiary outside of probate. This process is controlled by the company managing the asset. Generally, you will need to fill out a form provided by the company that designates who receives the account or proceeds upon your death. Similarly, property held with a right of survivorship will pass without probate to the surviving co-owner or co-owners listed on the account or title. Trust property is not subject to probate. Trusts are often used to avoid probate because a trustee administers them with no need for probate. For example, a married couple creates a living trust to hold their property, and they appoint themselves as trustees. The trust provides that upon the death of the couple, their child is nominated as successor. The trust agreement then directs the successor trustee how the property is to be managed. No probate is required for the trust to operate.

A trust, like a probate estate, is subject to beneficiary claims, such as improper expenses, inappropriate trustee compensation, or claims of improper distributions or other mismanagement by the trustee. Also, assets must be actually transferred into the trust to be controlled by the trust agreement. Probate is still necessary to transfer property that was not re-titled before the owner’s death.

Like we said, things like probate and estate administration can be tricky and complicated. If you need legal advice about administering a loved one's estate, give us a call at 253.858.5434 to set up an appointment today.

Estate planning isn't limited to financial issues. Many families use their estate plans to pass along family history, traditions, and values. Estate planning is legacy planning.

Many people use their estate plan to pass along wealth to their children, grandchildren, and other loved ones, to pass along their values, and to support causes that are important to them. One way to do this is by designating charitable giving or specific gifts that will help ensure your legacy. It is important, however, to balance your income and the needs of your beneficiaries with the available tax incentives.

While the general purpose of estate planning is to ensure that you and your family are taken care of when most needed, you do not need to limit your estate planning to financial issues. In fact, many individuals use estate planning to pass along family history and traditions through their giving. An estate plan may specify how a beneficiary can use their inheritance such as for college tuition, traveling, or other values that are important to the giver. In addition, you can choose to give to a qualified charitable organization in your Will or Trust so that the gift is distributed upon your death or incapacity. Gifts to charities can help significantly reduce your estate and gift tax liability, and will allow you to support the charitable causes that are meaningful to you.

One estate planning tool that will allow you to pass along your values as well as your wealth is an incentive trust. An incentive trust is a type of trust that includes provisions that reward a beneficiary for achieving a specified range of desired goals or behaviors. The trust may also indicate how the money may be distributed. Another estate planning tool is the charitable lead trust. This type of trust allows payments to be made to the charity during the trustor’s lifetime. When the trustor dies, or at the end of a specified period of time, the remainder of the assets in the trust go to the decedent’s estate, their spouse, or other beneficiaries. Another way to continue your legacy is through a donor advised fund. A donor advised fund is similar to a charitable investment account with the specific purpose of supporting charitable organizations. Pre-funded charity gifts can help your family decide which organizations will be financially supported.

These are just some of the estate planning tools available for charitable giving that allow you to pass along values and support causes that are important to you in your estate plan. No matter what your goals regarding your estate plan, it is important to craft a plan that takes advantages of the tools and tax benefits available to you under applicable law. If you have questions regarding estate planning, we will be happy to explain the options available to you and your family, and help create the best plan to suit your needs. Give us a call at 253.858.5434 to set up an appointment today.

Some parents struggle with the difference between "equal" and "fair" gifts to their kids. Sometimes an unequal distribution of your estate can seem like the fairest thing to do.

When it comes to leaving money to the kids, some parents struggle to reconcile “equal” with “fair.” An equal inheritance treats each child the same, regardless of life situation or special circumstances. On the other hand, sometimes an unequal distribution can seem like the fairest thing to do, given a child’s age, financial wherewithal, or previous track record.

To avoid unpleasant surprises and contentious family squabbles, be transparent about your plans and talk with your kids ahead of time. That'll help them understand your point of view and give them an opportunity to share concerns or life issues you may not be aware of. Imagine, for example, that you intend to leave more to your daughter, the social worker, and less to your son, the small business owner. Disclosing this plan could encourage your proud son to reveal that business is declining and the operation has far less value than you thought.

Having these difficult conversations ahead of time allows you to adjust for such misunderstandings, before it’s too late. You may find that your kids are sympathetic and accepting of unequal distributions. Alternately, you may change your mind if one child’s sense of hurt and injustice threatens to divide family relationships.

Here are some reasons you may choose to allocate an inheritance unequally:

* A child has special needs and requires long-term financial help.
* A child struggles with addiction, legal issues, or chronic financial mismanagement (an option here would be to put this child’s gift into a trust to control how they access it).
* A child earns more or has a significantly higher standard of living than their siblings.
* A child received sizable financial gifs while you were still alive.
* A child is younger and will need support for college and other coming-of-age expenses which you already provided to the elder children.
* A child has died and you do not wish to distribute your assets to their heirs.
* A child provided caregiving support to you in your old age while others did not.
* A child participated in the family business while others did not.

In addition to telling your children why you plan�to leave an unequal gift, consider providing a written explanation of your decision that can be attached to your Will or Trust. Such a letter communicates facts and feelings that are not usually included in estate planning documents and may deter an unhappy heir from contesting your Will. Talk with your lawyer about any letters you intend to leave to ensure you don’t create any confusion in your plans.

Also, talk with your lawyer and be sure you understand the implications of naming certain children as beneficiaries on a retirement account or life insurance policy. In such cases, those assets would pass to the named child directly and would be excluded from your estate, meaning those assets won’t get divvied up among your heirs.

Even if your kid recognizes this was a mistake and wants to redistribute the funds, it can be a costly and difficult issue to fix. Regifting assets to their siblings could potentially trigger gift taxes. Alternately, the child could disclaim part of the inheritance, but that is best done with legal counsel and a full understanding of potential implications.

If you’re convinced that an unequal distribution will create a serious sense of unhappiness, consider alternative ways to support a child or otherwise “even things out.” You might consider making annual gifts to a child while you are still alive. In 2020, you can give $15,000 to any number of individuals without having to pay a gift tax. In fact, you and your spouse may give $15,000 each to the same person without triggering gift taxes. Another option is to compensate a child for assistance they provides you, or seek out other ways to support the family, such as contributions to a grandchild’s college fund. Another way to assuage a child’s hurt feelings could be to give one child more money while gifting the other one with meaningful family heirlooms or other assets, such as a vacation property or a collector car.

Death and money issues have significant potential to create conflict, even among the most harmonious families. Clear communication is critical to helping maintain relationships and goodwill among those you leave behind. An explanation of why you made the decision you did can alleviate uncomfortable questions and reduce (or hopefully eliminate) any lingering bad feelings.

If you have estate planning questions, give us call at 253.858.5434 to set up an appointment today. We represent clients throughout Washington and Idaho and are available to meet in person (with appropriate social distancing protocols in place), by phone, or via video conference.

Estate planning is a little more complicated in second marriage situations. We can help you plan to take care of everyone involved - your spouse, your kids, and your spouse's kids.

In first marriages, the couple generally has the same goals when it comes to their estate plans: take care of the surviving spouse for as long as they live, then whatever is left will go to the kids. They may own many of their assets jointly and, at the death of the first spouse, more than likely everything will go to the surviving spouse just as they had planned.

But second marriages are different. Each spouse may have children from their previous marriage and sometimes there are children that the spouses have together. Each of you probably has assets that you brought into this marriage, and you want those to go to your own children after you die. At the same time, you probably want to make sure your surviving spouse will have enough to live on should you die first.

More than likely, the estate planning methods you relied upon in your first marriage will not work now. For example, let’s say you add your new spouse’s name on the title of your home and you own it as joint tenants with right of survivorship. If you die first, your share immediately transfers to your spouse, who now has complete ownership of your home. They can do whatever they want with it now, regardless of what your Will or Trust says. They can leave it to their own children and completely disinherit yours.

There are similar problems with beneficiary designations. Many people name their spouse as beneficiary of their life insurance, IRAs, and other tax-deferred plans to provide for their spouse should they die first. But this can be a problem with second marriages because your spouse-beneficiary can name anyone they want as new beneficiaries to inherit the proceeds, bypassing your children. Promises may be made now to include them, but promises can be broken after you are gone.

Other Considerations:

* If each of you has considerable assets, you may want to keep your assets and your estate planning separate. If there will be a pre- or post-nuptial agreement, be sure to have it reviewed by your estate planning lawyer (before signing).

* If your spouse has considerably fewer assets than you do, you can provide for them until death or remarriage, then have the remaining assets distributed to your children. This is often accomplished through a life estate or what is referred to as a QTIP Trust (which stands for a "Qualified Terminable Interest Property" Trust).

* If your new spouse is much younger than you are, your children may be concerned that they are only after your money. These feelings may subside as the marriage lengthens. But if your spouse is closer in age to your children than to you, they may be wondering if they will ever receive their inheritance from you. Consider giving them some of their inheritance upon your death (e.g., though life insurance), then the rest at your spouse’s death or remarriage.

* Crating a Trust and naming it as beneficiary for your life insurance policies and tax-deferred plans is often a good choice for second marriages. This will allow you to keep control over how and to whom the proceeds are distributed. You can provide your spouse with lifetime income, yet keep control over the rest of the proceeds. Keeping the proceeds in a Trust will also protect them from irresponsible spending, creditors, predators, divorce, remarriage, and even estate taxes, if done properly.

* Be sure to include planning for disability and long-term care. If one spouse becomes ill and Medicaid assistance is needed, the combined assets of the couple will be considered “available assets” to pay for the care of the ill spouse. Long-term care insurance may be needed to protect the assets of one or both spouses.

* Discuss your individual estate planning goals together. If they are similar, then your task may be somewhat easy. But if they are considerably different, consider having separate lawyers.

You want to do the right thing for everyone involved: yourself, your spouse, your children, and your spouse’s children. Take the time to consider this from everyone’s point of view. An experienced lawyer will be able to advise you and work with you to create a plan that will do exactly what you want it to do. If we can be of service to you, your family, friends, neighbors, or co-workers, give us call at 253.858.5434 to set up an appointment today. We represent clients throughout Washington and Idaho and are available to meet in person (with appropriate social distancing protocols in place), by phone, or via video conference.

Reminder That the CARES Act Suspended Required Minimum Distributions for 2020

Just a reminder that under the CARES Act, required minimum distributions (RMDs) from retirement accounts (other than defined benefit plans) are waived for 2020. The waiver applies regardless of age and includes original account owners and inherited-IRA beneficiaries. If you do not rely on your RMD for cash flow, contact your plan administrator and wealth manager about waiving your 2020 distribution. If you've already received your RMD, you can re-contribute the distribution to your account, as long as you do so by August 31, 2020. Unfortunately, you cannot reverse the tax withholding although the withholding will be applied on your 2020 tax return.

Since RMDs are based on the value of the account as of the end of the previous year, the suspension of RMDs for 2020 is also a way for account owners that experienced a steep decline in their IRA value to recover those market losses.

Planning for RMDs should be reviewed alongside your wealth manager, and keeping in mind your long-term financial planning and estate planning goals. For more information, contact us at 253.858.5434 or our colleagues at Summit Wealth Management at 253.858.2884. We're here to help!

Representing Clients Who Have Suffered Orthopedic Injuries in Auto Collisions

Often times after an auto collision, people suffer from orthopedic injuries. These injuries can range from mild to very serious cases that require significant treatment or surgery. If you have suffered an orthopedic injury from a collision where someone else was at fault, we may be able to help you–whether it’s by pursing a claim or just helping you understand what to do.

Orthopedic injuries include any injuries which cause trauma or damage to bones, muscles, or ligaments which affect your range of motion. These injuries can result in significant pain, considerable medical expenses (especially if surgery is required) and even longer recovery and physical therapy commitments. Needless to say, an orthopedic injury can be quite a costly and traumatic thing to go through.

Orthopedic injuries are those where the bones, vertebrae, joints, ligaments, or cartilage are hurt. These can be seen with shoulder, elbow, wrist, hand, hip, knee, ankle, or feet injuries, and such problems may lead to fractures, sprains, strains, slipped disks, diseased or arthritic disks, neck pain, headaches, occipital neuralgia, whiplash, or rotator cuff injuries.

As with all injuries, orthopedic injuries can happen as the result of negligence, which is the breach of a duty of care by a third party individual or other entity. Negligence can be something as simple as a driver failing to yield at a sign, causing a collision that results in a serious orthopedic injury, or something more complex like a faulty product malfunctioning and causing your injury.

Symptoms you suffered an orthopedic injury may include pain, swelling, bruising or redness. Immediate medical attention is needed following an orthopedic injury. Since there is such a wide range of different orthopedic injuries, any symptoms should be examined by a medical professional.

Depending on the severity and location of the problem, some orthopedic injuries can be treated with activity and exercise, dietary supplements, medications, and physical devices such as casts and splints. Others require surgery to regain or maintain function and movement.

No matter how your injury was caused, we have the experience and ability to help you–whether you want to file a claim for damages against a negligent third party or you simply want help navigating the complex worlds of insurance claims, we have over 20 years of experience advocating for our clients.

We understand that suffering an injury can be frustrating and scary. Injuries prevent you from being able do the things you normally do and can prevent you from collecting a regular paycheck, which you or your loved ones might rely on. Filing a personal injury claim may lead to compensation that can help cover medical costs or make up for money lost from being unable to work. If you or a friend, family member, neighbor, or co-worker has experienced an orthopedic injury, contact us to go over the details of your case today at 253.858.5434 or through the "Contact Us" page on this website.

Mistakes Your Lawyer Can Help You Avoid When Preparing Your Estate Plan

The primary goal of estate planning is to develop an effective and efficient process for the administration and distribution of an individual's assets after death according to their wishes. The following estate planning mistakes can be avoided, with some effort and with your lawyer's assistance.

"I CAN DO IT MYSELF." Those who replace professional advice with do-it-yourself planning should understand the effects of their actions. Frequently, the family of the do-it-yourself planner will pay significantly more administrative fees, court costs, and taxes than if they’d engaged professionals early on. The emotional strain and family conflict that can be created by poor estate planning can last for generations.

NOT REVIEWING OR UPDATING YOUR ESTATE PLANNING DOCUMENTS REGULARLY. Read your Will. Does it reflect your current wishes? We recommend reviewing your Will and related documents every three or four years, or more often if any of the following occur:

1. The birth or adoption of a child;
2. A meaningful change in your health or wealth or of one of your beneficiaries;
3. You move to another state;
4. You marry, separate, or divorce;
5. The marriage, divorce or death of anyone named in the Will;
6. A major tax or state law change;
7. Any major change in your needs, circumstances, or objectives or those of your beneficiaries.

THINKING THAT EQUAL DISTRIBUTION IS THE SAME AS EQUITABLE DISTRIBUTION. Most parents want their children to share equally in the estate assets. A frequent problem occurs when a person owns a business in which only some of the children participate. Giving both participating and non-participating children equal shares of the business is a near guarantee for disaster. Consider also two children, the older is a financially successful business owner and the younger has severe learning disabilities. Their needs and circumstances are not the same. Should each child receive the same amount?

NOT UNDERSTANDING JTWROS AND BENEFICIARY DESIGNATIONS. Most people believe their Will controls the disposition of all their assets when they pass away. Bank accounts and brokerage accounts are frequently owned as "Joint Tenancy with Right of Survivorship" (JTWROS). The surviving joint owner will become the sole owner after the death of the first joint owner. Retirement accounts, life insurance benefits, and annuities will be paid out to their named beneficiaries, which is not necessarily the same as what is written in the Will.

NAMING THE WRONG ADMINISTRATOR. Selecting an incorrect administrator (Personal Representative, Executor, or Trustee) can be a disaster. The primary duties include:

1. Collecting the assets
2. Paying debts and expenses
3. Distributing assets to the named beneficiaries

Although these duties seem simple enough, executing them can be very complex, time consuming, and stressful. Choosing one of the beneficiaries as the administrator may result in a conflict of interest. Selecting an administrator who does not get along well with all family members can create more havoc. Sometimes the best solution is to use an independent third party administrator. “Trust companies” provide this service alone or as co-administrators with a family member. This is a crucial decision and to be taken seriously. Alternates should also be named.

PROCRASTINATION. If you die without a Will, the state has written one for you. Your assets will be distributed to the people (spouse, children, etc.) in the percentages specified by state law. If you have minor children, these same laws govern who will be chosen as their guardian. Regardless of net worth or age, everyone needs estate planning to some degree.

It’s never too late to start or update your estate plan. If you passed away suddenly tomorrow, would your current estate plan give you the result that you want at an acceptable cost? If not, give us a call at 253.858.5434 for help moving your plan forward. We represent clients throughout Washington and Idaho.

Changes to Charitable Giving Rules Under the CARES Act and Some Tax Planning Ideas for 2020 Charitable Gifts

The Pacific Northwest is home to thriving businesses, fast-growing companies, and some of the world's leading nonprofit organizations. Our region has always been a leader in philanthropic giving, and new tax incentives under the CARES Act will go a long way in helping to rebuild communities.

The CARES Act, signed into law last March, offers significant incentives for families that are charitably inclined to help support the causes they care about while also gaining significant and meaningful tax savings. Summarized below are some changes for charitable gifting under the CARES Act, along with some tax planning ideas for 2020 charitable gifts.

NEW LIMITS ON CASH DONATIONS TO PUBLIC CHARITIES.

* For 2020, individuals may deduct up to 100% of their gross income for cash donations to public charities (up from 60%). One caveat as that these donations only apply to qualified public charities and not donor-advised funds or private foundations.

* For businesses, the CARES Act increases the deductible limit for cash donations made by C-Corporations to 25% of taxable income (up from 10%).

* Taxpayers who don't itemize for 2020 will be able to claim a deduction from gross income for up to $300 in cash donations to public charities.

* Donations in excess of these limits will carry over to the next five tax years, with limits reverting to the 60%/10% limit in 2021 and future years.

NO CHARGE FOR STOCK DONATIONS OR GIFTS TO DONOR-ADVISED FUNDS/PRIVATE FOUNDATIONS. There was no change in the CARES Act for the deductible gift limits of 60% for cash donations to donor-advised funds (30% for appreciated stock) and 30% for cash gifts to private foundations (20% for appreciated stock gifts). Donations to donor-advised funds and private foundations, however, still play an important role in effective income tax planning, especially when considering very large gifts and gifts of highly appreciated stock.

3 PLANNING IDEAS FOR 2020 CHARITABLE GIFTS. Charitable donations are best for income tax planning in high-income high tax bracket years and pair nicely with low-basis highly appreciated stock gifts, retirement years, and Roth conversions.

* Pairing Charity with Roth Conversion - With cash donations being deductible up to 100% of gross income in 2020 to public charities, pairing a large cash donation (or stock) with a Roth conversion could be a compelling tax strategy. For example, a taxpayer with the goal of making a $500,000 cash donation, and expected 2020 gross income of $250,000 could also make a $250,000 Roth conversion at little or no additional tax cost, achieving both charitable goals and allowing more retirement assets to grow tax free in a Roth.

* Low Basis Stock - Gifts of appreciated stock or real estate also have the double tax benefit of not having to pay capital gains tax on the appreciated value, while getting a full deduction for the fair-market-value of the appreciated gift.

* QCD from IRAs - Qualified charitable distribution under the CARES Act did not change and taxpayers over age 70 1/2 are still able to contribute up to $100,000 annually from their IRA.

* Required Minimum Distributions (RMDs) tax-free to public charities - Donors wanting go over the $100,000 annual limit could also consider cash gifts under the CARES Act of up to 100% of gross income for cash donations, further sheltering tax on IRA distributions that go to charity. For taxpayers that do not need to take 2020 RMDs, consideration should also be given to the option to suspend 2020 RMDs and make charitable donations from personal funds.

Apart from the tax savings, giving back to our communities not only makes a difference in the lives of others but also enhances our own well-being, with generous people being happier, healthier, and living with a greater sense of purposes. We are happy to work with you, alongside your wealth manger or financial planner, to determine your gifting capacity, plan for large charitable gifts, and implement long-term philanthropic and estate plans that fit your family's goals.

Whether you are donating your time, expertise, or wealth, we are here to help! Give us a call at 253.858.5434. We represent clients throughout Washington and Idaho and are available to meet in person (with appropriate social distancing protocols in place), by phone, or via video conference.

You've spent years building a business you're proud of. We can help you create a plan to pass it on to your kids and grandkids.

You have spent years building a business that you are proud of. As you reflect on the next phase of your life, you want to leave a thriving business for your kids and grandkids. As baby boomer business owners age into their retirement years, it is becoming increasingly important for these planning conversations to take place. A recent study showed that 51% of small business owners in the U.S. are over age 50. A similar study found that 58% of business owners do not have a specific succession plan in place. If you’re feeling unprepared, you are not alone. Here are some tips to help you get started.

BUILD A PLANNING TEAM. As you begin to think about this next phase of your life, it helps to have professional guidance and counsel to navigate the many difficult decisions ahead. A team of professional advisors can help you to:
• understand and articulate your goals (perspective)
• determine the tax, legal, and financial strategies to best accomplish those goals (technical expertise)
• help you navigate the potholes, speed bumps, and roadblocks that inevitably come up on your journey (experience).

Collaboration is an essential element in this well-functioning team. Each team member provides technical expertise in a different discipline. Furthermore, each advisor has their own set of experiences dealing with similar issues from which to draw. This provides the opportunity to bounce ideas off each other and to create a thoughtful plan that has been considered from different perspectives. We have seen these situations play out with—and without—collaboration among advisors and strongly suggest the former in finding a team that can cohesively recommend the best solution for you. While this team is important, you should ultimately identify one member to serve as the “quarterback” who will spearhead the overall team.

The value of good advice can be hard to quantify when everything goes according to plan. A well-executed plan can save you money on taxes, legal fees, and the intangible heartache along the way. Start your team with an existing trusted advisor and ask them to help build out this team.

UNDERSTAND YOUR DESIRED OUTCOMES - GOALS DRIVE STRATEGY. Once you have your planning team in place, it is time to start articulating your desired outcomes. Every business owner's priorities and goals are unique.

• From an ownership perspective, do you plan to transfer or sell ownership to your family or employee group, will you try to maximize value by selling to a third party, or might you consider some combination of the two?
• Who will run the business when you’re gone, and does that person have the knowledge and desire to take the reins?
• From a financial and estate planning perspective, how much money do you need from the business to achieve the financial goals your family desires and can the economic interest be transferred in a tax efficient way?

Your planning team helps draw out these goals by asking questions designed to get you thinking. Often, there are competing priorities which will take time to work through with your team. Once you can articulate exactly what you want, your team can put together potential strategies, pulling in additional professional expertise, and executing the agreed upon strategies.

COMMUNICATE. During the initial discovery and planning phase, it is critical to have open communication and collaboration with your advisors. Many strategies can work for any desired goal; the key is finding the one that works for you and having open lines of communication to help throughout the process. Once a strategy is agreed upon, it is important to control the narrative during this transition period. Clear communication with key stakeholders, whether with future owners and managers, your family, or your planning team, will help make this transition smoother. It is equally important that news of any change doesn’t get out to your customers or employees. Keep the conversations with your key stakeholders private and carry on with business as usual with everyone else.

DON'T WAIT. The most common mistake we see business owners make is not having a plan in place. Often, planning is done after many tax saving opportunities are either no longer available or a good opportunity was missed. Having a team in place to build the plan long before a sale or transition is imminent provides the best opportunity to take advantage of all the various strategies.

As an example, a business owner brings his team together knowing that he wants to sell his business in the next year or two. If the business is structured as an LLC, the business owner would not be able to convert it to a C-Corporation to take advantage of the Qualified Small Business Stock rules to reduce or eliminate his capital gains tax bill, potentially missing out on over $2 million of tax savings. To qualify for these savings, the owner would need to hold the stock for five years after converting to a C-Corp, throwing off his timeline of one to two years.

When people think of business succession planning, they usually think of a specific plan for retirement or passing their business to their children when they’re ready. However, the planning that is done with your team will also put into place a structure and plan for unforeseen circumstances, such as an
untimely death or disability. A well thought through succession plan will provide for financial and management stability during these stressful times.

Succession planning will help you provide a legacy for your family and your business. Starting today will give your planning team a head-start and give them every tool at their disposal to optimize your plan.

If we can be of service to you, your family, friends, neighbors, or co-workers, give us call at 253.858.5434 to set up an appointment today. We represent clients throughout Washington and Idaho and are available to meet in person (with appropriate social distancing protocols in place), by phone, or via video conference.

If you've been hurt in an auto collision, your medical records will be an integral part of your personal injury claim.

If you’ve been injured in an auto collision, medical records will be an integral part of your personal injury case. Your medical records will show what injuries you sustained, the extent of pain you experienced, what treatment was given, what ongoing conditions you have, and how the injuries may affect your life, now and in the future. Without medical records, it’s virtually impossible for your lawyer to prove that you’ve been hurt as the result of another person’s negligence.

Accessing medical records is governed by a number of laws established by the Federal Privacy Act of 1974, the Health Insurance Portability and Accountability Act (HIPAA), the U.S. Department of Health, and state laws and administrative regulations.

These days, most medical records are kept in electronic format. Because medical records are protected from disclosure by HIPAA, you will have to sign a release form to obtain copies of your medical records. Hospitals and medical clinics have their own processes, and some may charge a fee for copies. These fees may be limited by recent rules published under the HITECH Act.

Insurance companies may ask you to sign a release form authorizing them to access your medical records directly from the doctor’s office. This is a common practice in personal injury cases. DO NOT consent without talking to your lawyer first.

During the discovery phase of a personal injury case, each side in a case may make a Request for Production (RFP) to obtain medical records and other documents that are relevant to the claims being made in the case. Even if a RFP is made, however, the request could be denied. If this happens, medical records and other relevant document could be subpoenaed.

Remember, the other side will be looking for information that can damage your claim or make the severity of your injuries seem less than they actually are. Being honest and open with your lawyer is critical. If the other side tries to use personal information against you that has nothing to do with the claim, your lawyer could have it suppressed. But it’s important to be truthful.

If you or a family member, friend, neighbor, or co-worker have been injured in an auto collision and want legal advice in pursuing your claim, give us a call at 253.858.5434.

Benefits of Including a Revocable Living Trust as Part of Your Estate Plan

A Revocable Living Trust is a legal arrangement created by a Trust Agreement signed by the trust maker and trustee. It lists the property assigned to the Trust, the trustee, and the name of the beneficiaries of the property held by the Trust after the trustee dies. The trustee exercises control over the property and so it often is the same as the trust maker until their incapacity or death. We help our clients with several aspects of estate planning, including creating and funding your Revocable Living Trust.

We recommend estate planning for anyone who owns real estate, has minor children and they want to ensure that the children have trustworthy guardians after their death, and for clients with complex estates who want to avoid probate or lingering disputes among potential heirs. Many parents may assume they know who will take care of their minor children if both die. With proper estate planning, you can address just about any issue you might face at incapacity or death.

The general rule is that larger estates and those with young children are better off with a Revocable Living Trust than with just a Will. The trustee of the Trust can immediately take charge, distributing assets as needed, and that even can happen before the trust maker’s death if they are ill or incapacitated depending on how the Trust is set up.

All assets funded to a Trust avoid probate. Probate can take months or even years if the Will is disputed, delaying the distribution of property, which is a major problem when children are involved. The trustee of a Revocable Living Trust and the named guardian can quickly use Trust assets to provide for the children as instructed.

If a person owns real estate in more than one state, the property will have to go through probate in each state separately when it is in a Will. Distributing property to beneficiaries through a Trust will avoid probate and save money. Unlike a Will, Revocable Living Trusts do not generally become public after the trust maker’s death.

We can help you settle a trust. They are generally more complex than writing a Will. In order to be funded, all of the property named in the document needs to be retitled and transferred into the Trust. That can include transferring the beneficiary of a life insurance policy and placing the title of your home into the trust. It can be a more complex process than simply creating a Will, which is one reason why we recommend hiring an experienced lawyer when creating a Trust so that we can help you work out the details.

Some people confuse a Revocable Living Trust with a Will. Both allow a person to name their heirs and beneficiaries, transfer property to their children upon their death, and can be revised as circumstances or wishes change. However, Revocable Living Trusts will stay private even after a trust maker’s death, whereas a Will becomes a matter of public record.

If you are interested in having a Revocable Living Trust created for your estate, give us a call at 253.858.5434 to see how we can help. We represent clients throughout Washington and Idaho and are available to meet in person, by phone, or via video conference.

Auto collisions bring up a bunch of questions. Fault? Damages? Who pays for medical bills? How much is "pain and suffering" worth? Lost wages? We can help you get answers.

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

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

Hiring a lawyer to represent you after an auto collision means you will have a professional working for you--one who is knowledgeable about the relevant laws and procedural rules that may affect your case. A lawyer can advise you of any time limits (called statutes of limitations) that can bar you from filing a lawsuit against the at-fault driver. For instance, here in Washington, you must file your lawsuit within three years of your collision or be forever prohibited from filing suit. In Idaho, it's two years. A lawyer will also be able to inform you about any special exceptions to the statute of limitations--for minors, for example.

Your lawyer can file a lawsuit on your behalf and will know how best to mitigate any possible defenses raised by the other side. In addition, once your case gets under way, your lawyer will play an invaluable role in preparing your case for trial--and even going to trial if your case doesn't settle. Even though a lawsuit is rarely necessary, the threat of legal action offers strong leverage when negotiating a fair settlement.

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

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

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

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

Having an experienced and articulate advocate working for you is essential in obtaining a reasonable and fair resolution in your personal injury case. If we can be of service to you, your family, friends, neighbors, or co-workers, give us call at 253.858.5434 to set up an appointment today.

When most people think about estate planning, their first thought is a Will. And then they think, "I should get one of those someday." Estate planning means more than just a Will. Don't put it off.

When most people think about estate planning, their first thought is a Will. A common next thought is, “I should probably get one of those someday.” The unspoken implication, of course, is “but not today.” Putting off estate planning seems a popular – but ill-advised – undertaking. Moreover, estate planning means more than just a Will. It is important to note that if you were to pass away before you prepare an estate plan, State laws fill the gap by directing what happens to your assets. So, you may have one of two types of estate plans: a plan that you have intentionally set in place via a Will or Trust, or a default plan, called “intestacy,” in which State law determines where your assets will go.

Similarly, if you become incapacitated and have not created and funded a Trust or executed a Durable Power of Attorney, the State can intervene to appoint a legal guardian of the person and guardian of the estate. Guardians may be appointed by the court to take charge of your affairs, whether that means making healthcare decisions or managing your assets. If you prefer to be the one to determine what happens if you become incapacitated or when you die, rather than leaving it to State courts or statutes, here are the basic estate planning documents to have drafted by an experienced estate planning lawyer.

WILL. Your Will becomes effective at your death. If you are a parent, your Will can identify who the guardians of your minor children will be at your death. It also names a Personal Representative (formerly called an "Executor") who is in charge of collecting and distributing your assets, paying bills that were incurred prior to your death, etc. A Will can also provide for Trusts that could provide tax planning or other benefits. And, most importantly, a Will disposes of your assets to the people or charitable organizations you have chosen.

HEALTHCARE POWER OF ATTORNEY: This document names a person (an “attorney-in-fact”) to make healthcare decisions on your behalf if you become incapacitated. Because of healthcare privacy laws, this is an important document to have because it allows the named person access to your medical information so they can make informed decisions regarding your healthcare, and possibly end-of-life planning.

DIRECTIVE TO PHYSICIANS/"LIVING WILL": This document states your wishes regarding extraordinary measures necessary to keep you alive due to illness or injury. When preparing this document, consider how you feel about receiving artificial nutrition and hydration, CPR, and oxygen and for how long and under what conditions.

DURABLE POWER OF ATTORNEY: This document names an attorney-in-fact to take care of your financial affairs. You may give this person the power to make decisions immediately or only in the event of your becoming Incapacitated. The attorney-in-fact can hold limited or broad powers to act. Examples are making gifts on your behalf, selling property, funding a trust, or accessing your accounts to
pay your bills. Given the extent of the powers usually authorized, it's important to name a trustworthy
person for this role.

REVOCABLE LIVING TRUST: Another document that people may use to transfer assets at death or plan for incapacity is a Revocable Living trust. This Trust may be as effective as a Will for directing the disposition of your estate, tax planning and can also take the place of a Durable Power of Attorney. A Trust only works if it is properly funded since assets must be titled in the name of the Trust. A Trust also has the benefit of
avoiding probate, which allows for greater privacy.

KEEP YOU ESTATE PLAN UPDATED. It's important to understand that an estate plan is not a one-time undertaking. Some key events that should lead you to update your plan include:

* Changes in the law.
* Changes in marital status.
* Changes in family status, including having children or having beneficiaries pass away.
* Changes in wealth.

USE PROFESSIONAL ADVISORS. Have a lawyer draft your estate planning documents. They touch on complicated tax and legal issues and language used is critical to carry out your intent. You may also consider consulting with a tax advisor and financial planner to address possible tax consequences.

If we can be of service to you, your friends, family, neighbors, or co-workers, give us a call at 253.858.5434 to set up an appointment today. We represent clients throughout Washington and Idaho and are available to meet in person (with appropriate social distancing protocols in place), by phone, or via video conferencing.