November is a pretty big deal around here. This November marks 24 years of practicing law and 8 years since moving our office from Seattle to Gig Harbor. So every November we offer you this: Any new client who hires us this month to represent them on their estate plan (Wills, Trusts, Powers of Attorney, etc.) gets 50% knocked off their attorney's fees. Go tell your friends. And give us a call at 253.858.5434 to make an appointment.
Well, it’s that time of year again. We review our clients’ estate planning files at the end of October and April every year. Every file gets reviewed every 3-4 years, or more often depending on the client’s circumstances and plan. If you feel like your estate plan needs a review or update, or if you would like a copy of our estate plan review checklist, give us a call at 253.858.5434 or shoot an email to steve@aitalaw.com.
Our law firm practices primarily in the areas of estate planning, trust and estate administration, and estate litigation throughout Washington and Idaho. We understand that the estate planning and administration processes can present emotional and legal challenges, and that each individual and every situation is unique. We offer peace of mind to clients by providing knowledgeable advice regarding estate planning and trust and estate administration in a straightforward manner.
A well-crafted estate plan accurately states your objectives and provides clear instructions on how to carry out your plan. We work with our clients and their other trusted financial and business advisors to help implement their wishes and help make sure that the estate plan works as intended.
When a loved one passes, the process of administering the estate is often unfamiliar and daunting to the survivors. We help guide personal representatives, trustees, and other fiduciaries though the trials, tribulations, and challenges of an estate or trust administration.
We carefully listen to each client’s individual situation to identify and address areas of potential conflict when creating an estate plan or when assisting with the administration of an estate or trust. However, when conflict arises, we are adept at aiding fiduciaries (trustees and personal representatives), beneficiaries, and other interested individuals.
We have extensive experience in all aspects of estate planning, wealth transfer, business succession, estate administration, and litigation. We offer a range of experience and expertise in the following areas:
ESTATE PLANNING
* Creation of core estate planning documents: Wills, Revocable Living Trusts, Powers of Attorney, and Health Care Directives
* Planning for minor children
* Charitable planning during life and at death
* Vacation property and rental property agreements
* Pre-Marital and Post-Marital Agreements
* Estate planning for non-U.S. citizens
* Second marriages and blended families
* Business succession planning for closely-held and family businesses
* Planning for disabled beneficiaries
* Supplemental and Special Needs Trusts
INCAPACITY PLANNING
* Powers of Attorney
* Health Care Directives
* Revocable Living Trusts
WEALTH TRANSFER TAX PLANNING
* Advanced Estate Planning such as Dynasty Trusts, Grantor Retained Interest Trusts, and Qualified Personal Residence Trusts
* Life insurance trusts
* Charitable trusts
ESTATE & TRUST ADMINISTRATION
* Assisting with carrying out your estate plan wishes
* Probate administrations
* Summary and Special Administrations
* Ancillary probate administrations
* Coordination of advisors including CPA, investment professionals, and trustees
* Representation of trustees for on-going irrevocable trusts
* Management and advice regarding distribution of assets
* Beneficiary representation
* Judicial and Non-Judicial Trust Modifications
* Administration of court supervised trusts
BUSINESS SUCCESSION
* Buy/sell agreements
* Business succession options
* Intra-family loans
* Valuation discount planning
* Minority interest gifts
* Corporate governance of family and closely-held businesses
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 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.
Musicians need lawyers too. When should you consider consulting a lawyer?
* You need a contract with a manager, booking agent, or producer;
* You need to formalize your internal band agreement (e.g., expenses, song splits, voting rights);
* You receive an offer for use of your song in a film, commercial, videogame, app, etc. and need a licensing agreement;
* You need to register your copyrights (songs, recordings) or trademarks (band name, logo);
* You want to form your own publishing company;
* You need help affiliating with ASCAP, BMI, SESAC, or SoundExchange;
* You find out someone is using the same band name;
* You discover that someone is using your song without permission;
* You want to record a cover of someone else's song;
* You need an exit agreement with a band member who is fired or quits;
* You have a record label interested in signing you or your band;
* You want to use someone else's music on your website or in a video;
* You co-wrote a song and want to establish your rights to freely exploit the song;
* You teach music lessons and need a services contract with your students;
* You perform at private functions and need a performance contract;
* You are running a festival and need contracts with the performers;
* You want to perform or shoot a video on someone's property; or
* You commissioned artwork for your album cover or merch and need to make sure you have all the rights you need to use the artwork.
Give us a call at 253.858.5434 to see if we can help.
Being involved in an auto collision can be frightening and can have a ripple effect on many other aspects of your life. The immediate concern, obviously, is to assess for injuries. Next, it is important to seek a medical assessment, even if you don’t have an obvious injury. Over the following days, however, life can quickly become overwhelming. Dealing with insurance companies, other involved parties, and trying to get your vehicle fixed takes a lot of time and energy. While you are trying to recover from an injury, it can be difficult to focus on everything else.
If you have been injured in an auto collision, know that you do not have to face the future alone. We have over 20 years of experience representing injured people and their survivors and know just how to help. While we handle the paperwork and negotiate with the insurance companies, we want you to focus on getting better.
Insurance companies are trying to make a profit for their shareholders; therefore, they look for every possible way to avoid paying out on a claim. With our years of successful practice, we know how to navigate through the insurance maze. Above all, our goal is to keep your needs as the focus of the negotiations. We know the intricate details of the law and we will make sure your rights are protected.
If you or one of your friends, family members, neighbors, or co-workers have been injured in an auto collision, give us a call at 253.858.5434 to set up an appointment for a free initial consultation today.
Estate planning can be difficult to think about. It forces people to think about financial activities that will occur while they are living and after their own deaths. It's important to make sure assets are managed prudently and that the next generation of family members will receive inheritances without incident.
Although any lawyer can draw up a basic Will for straightforward situations, most people's situations aren't so "straightforward." People's financial and personal lives, wishes, and needs are complex. An experienced estate planning lawyer can help you navigate complicated situations involving several trusts and multiple heirs.
When creating your estate plan, you may have a variety of concerns, including the following:
* Maintaining an orderly administration of assets while you are alive
* Managing estate assets flexibly while you are alive
* Reviewing estates involving tenancy in common, joint tenancy, or community property
* Considering assets in multiple states
* Examining family-owned businesses and succession planning
* Naming your children’s legal guardian
* Ensuring that your heirs and loved ones receive your assets as you direct
* Helping to reduce or avoid conflicts and confusion
* Minimizing legal expenses and taxes
* Assessing wealth preservation
If you own real estate and/or have kids, you should have an estate plan. Give us a call at 253.858.5434 to make 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 vide conference.
A revocable living trust is a popular estate planning tool you can use as a substitute for a Will to determine who will get your property and how your estate will be administered when you die. Most living trusts are “revocable” because you can change them or undo them as your circumstances or wishes change. Revocable living trusts are “living” because you make them during your lifetime. Us lawyers sometimes get fancy and call this an “inter vivos" trust, which is Latin for "during life."
REVOCABLE LIVING TRUSTS AVOID PROBATE. Most people use living trusts to avoid probate. Probate is the court-supervised process of wrapping up a person’s estate. Probate can be expensive, time consuming, and is often more of a burden than a help. Property left through a living trust can pass to beneficiaries without probate.
THE TRUST AGREEMENT. A trust agreement is a written document, signed by the trust maker, the trustee, and a notary. The document lists the property in the trust, names a trustee, and names who gets the property when the trust maker dies.
The trustee is the person who will take care of the property. While the trust maker is alive, the trust maker and the trustee are usually the same person, and then a successor trustee takes over after the trust maker’s death.
TRANSFERRING PROPERTY TO THE TRUST. After the trust agreement is signed, the trust maker must transfer any property they want covered by the trust into the trust. Titled property (like real estate) must be retitled in the name of the trust. This is usually not complicated or difficult, but it must be done correctly or the titled property could end up in probate.
REVOCABLE LIVING TRUSTS vs. WILLS. With both Wills and revocable living trusts you can:
* name beneficiaries for property
* leave property to young children, and
* revise your document as your circumstances or wishes change.
With a trust, not a Will, you can:
* avoid probate
* reduce the chance of a court dispute over your estate
* avoid a conservatorship or guardianship, and
* keep your document private after death.
If you would like to talk about creating a revocable living trust as a means of avoiding probate at your death, 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 conference.
Families with significant assets often use Family Limited Partnerships (FLPs) as part of their estate plans. An FLP is a useful structure for wealth preservation by protecting assets, planning an estate, and minimizing taxes. When properly executed, an FLP can save families significant amounts of money in gift and estate taxes. FLPs both protect assets from creditors and provide flexibility, since they can be revised and altered as circumstances change.
An FLP is a partnership among family members that allows joint ownership of family-owned assets. Family members act either as general partners or limited partners. General partners are responsible for controlling administrative and investment decisions and have unlimited liability. The general partner will be compensated according to the partnership agreement, either through a share of the profits or an annual fixed salary. The general partner is responsible for daily management of the FLP, such as hiring decisions, deposits, and withdrawals. Limited partners have no management responsibilities and are only partially liable. Limited partners vote on the partnership agreement and collect interest and profits. Generally, limited partners cannot lose more than they have invested in the partnership.
The structure of an FLP allows a partner to transfer a portion of their ownership of the assets held within the partnership to other family members who are also partners. Generally, parents and grandparents donate assets in exchange for general partner and limited partner interests. They can donate all or a share of the limited partner interest to their children and grandchildren, either directly or through a trust. Using FLPs to make lifetime gifts and transfers at death lays the groundwork to obtain a discount on the value of the transfers. The partnership is not taxable, but owners of a partnership report the partner’s income and deductions on their personal tax returns relative to their interest.
There are many advantages to an FLP, including reducing the taxable estate of older family members. The older family members can transfer property to their children in order to remove it from their estates and shield it from federal estate taxes, while maintaining control over decision-making and investment distributions. FLPs are also entitled to the gift tax exclusion, a significant mechanism for minimizing income, gift, and estate taxes. Legally, the worth of FLP shares can be reduced when transferred to family members. And, due to its flexibility, family members who own shares can alter the partnership as conditions change.
An FLP also can protect assets from creditor claims and former spouses. Creditors cannot force distributions, vote, or own a limited partner’s interest without the approval of the general partners. After a divorce, a limited partner is no longer a family member, and the partnership agreement can mandate transfer back to the family for fair market value, keeping the property within the family.
An FLP is useful for families with significant real estate assets. Using an FLP to make gifts of real estate in the state where the donor does not live can eliminate ancillary probates. A partnership interest is treated as personal property and subject to probate only in the state of the decedent’s domicile, even if the partnership owns real estate.
Combining family investments together in an FLP reduces a family’s investment fees considerably. Instead of individual brokerage accounts or trusts for each child, the partnership can hold one account, and the children can own interests in the account.
Family Limited Partnerships are just one of the many estate planning tools or techniques we utilize in helping families transfer wealth from one generation to another. If you have questions about complex estate planning, give us a call at 253.858.5434 to set up an appointment today.
Washington and Idaho are both community property states. In these states, community property agreements may provide estate planning benefits for married couples. Think of a community property agreement as the opposite of a prenuptial agreement - where a prenuptial agreement says, “This is what happens if we break up,” a community property agreement says, “This is what happens if we stay together until one of us dies, until death do us part.”
Many people mistakenly believe that once they marry, all of their property magically becomes community property, and upon the death of one spouse it automatically transfers to the surviving spouse. This is not true. Unless a married couple signs an agreement or co-mingles their separate and community property, gifts, inheritances, and property that a spouse owned before marriage remain separate property. Community property consists of wages earned during the marriage, property purchased with the wages earned during the marriage, and property converted to community property.
Each spouse can leave their half of the community property and all of their separate property to whomever they desire.
One benefit of community property is that the tax basis of a deceased spouse’s community property changes to the fair market value of the asset at the time of the spouse’s death.
A married couple can change all of their property to community property by signing a community property agreement in the presence of a notary public. Community property agreements come in two basic varieties: a vesting CPA and a non-vesting CPA.
VESTING COMMUNITY PROPERTY AGREEMENTS. The vesting CPA states that (1) all of the property owned by the husband and the wife is community property, (2) all property that they acquire in the future is community property, and (3) when one of them dies all of the community property automatically passes to the surviving spouse. Married couples with assets less than the amount exempt from both the federal estate taxes ($11.58 million in 2020) and Washington state estate taxes ($2.193 million in 2020) use a vesting CPA. A surviving spouse may file a vesting CPA and a certified death certificate with the county auditor on the first spouse’s death and avoid probating the spouse’s estate in Washington. The surviving spouse would also need to file an excise tax affidavit listing all of the real property being transferred using the community property agreement.
NON-VESTING COMMUNITY PROPERTY AGREEMENT. The non-vesting CPA states that all property owned by the husband and the wife is community property and all property that they acquire in the future is community property, but it does not distribute all of the community property to the surviving spouse. Married couples with assets in excess of the amount exempt from estate taxes use a non-vesting CPA so that all of the assets owned by each spouse achieve a tax-basis change at the time of the first death. However, it does not pass the assets directly to the surviving spouse. Instead, the deceased spouse’s share of community property passes under the deceased spouse’s Will as the deceased spouse directs.
TERMINATION. A CPA can terminate upon a specified event such as changing domicile from the community property state to another state, or by the parties signing another agreement revoking the CPA in the presence of a notary public. If the CPA terminates upon filing for divorce, it can make property acquired after the filing the person’s separate property and prevent the property from automatically transferring to a spouse if a person dies during the divorce proceeding.
RECORDING. A CPA must be recorded with the County Recorder's Office if it is used to transfer real property. Another benefit of recording is that a certified copy of the CPA can be obtained from the County Recorder if the original is lost. If a couple revokes a CPA, that revocation should also be recorded with the county auditor.
THE PROBLEM WITH COMMUNITY PROPERTY AGREEMENTS. A CPA may affect a married couple’s property rights if they divorce, since property ownership changes not only for tax purposes, but also for ownership and divorce purposes. If a person is considering leaving a marriage, he or she should not sign a CPA.
The benefits of a CPA for estate planning purposes include a change of tax basis on the death of the first spouse and the ability to avoid probate on the first spouse’s death if a married couple signs a vesting CPA. Of course, a couple must consider the potential problems that may arise if they divorce. In addition, people who do not want their assets to automatically pass to their surviving spouse, including for tax reasons, should not sign a vesting CPA.
If you have questions about community property agreements or how community property laws can affect your estate plan, give us a call at 253.858.5434 to set up an appointment today. We represent clients throughout Washington and Idaho and are available to meet in person (with appropriate social distancing protocols in place), by phone, or via video conference.
You don’t have to be rich to need an estate plan. Your estate includes everything you own, and it can be any size, which is why it can be worth taking time to plan for what happens to it. Estate planning is the process of designating who will receive your assets and handle your responsibilities after your death or incapacitation. One goal is to ensure beneficiaries receive assets in a way that minimizes taxes.
Estate planning can help establish a platform you can fine-tune as your personal and financial situations change. The key question to ask yourself is: How do you want your assets distributed if you die or are incapacitated?
5 STEPS FOR BASIC ESTATE PLANNING:
1. TAKE AN INVENTORY. You may think you don’t have enough to justify estate planning. But once you start looking around, you might be surprised by all the tangible and intangible assets you have.
The tangible assets in an estate may include:
* Homes, land, or other real estate
* Vehicles including cars, motorcycles, or boats
* Collectibles such as coins, art, jewelry, antiques, or trading cards
* Other personal possessions
The intangible assets in an estate may include financial assets like:
* Checking and savings accounts and certificates of deposit
* Stocks, bonds, brokerage accounts, and mutual funds
* Life insurance policies
* Retirement plans such as workplace 401(k) plans and IRAs
* Health savings accounts
* Ownership in a business
Once you inventory your assets, you need to estimate their value. For some assets, outside valuations like these can help:
* Recent appraisals of your home and any other real estate you own
* Statements from your financial accounts
When you don’t have an outside valuation, value the items based on how you expect your heirs will value them. This can help ensure your possessions are distributed equitably among the people you love.
2. ACCOUNT FOR YOUR FAMILY'S NEEDS. Once you have a sense of what’s in your estate, think about how to protect the assets and your family after you’re gone.
* Do you have enough life insurance? This may be important if you’re married and your current lifestyle — and monthly mortgage payment — requires dual incomes. Life insurance may be even more important if you have a child with special needs or college tuition bills.
* Name a guardian for your children — and a backup guardian, just in case — when you write your Will. This can help sidestep costly family court fights that could drain your estate’s assets.
* Document your wishes for your children’s care. Don’t presume that certain family members will be there or that they share your child-rearing ideas and goals. Don’t assume a judge will abide by your wishes if the issue goes to court.
3. ESTABLISH YOUR DIRECTIVES. A complete estate plan includes important legal directives.
* A Revocable Living Trust might be appropriate. If you become ill or incapacitated, your selected trustee can take over. Upon your death, the trust assets transfer to your designated beneficiaries, bypassing probate, which is the court process that may otherwise distribute your property.
* A Directive to Physicians, also known as a "Living Will," spells out your wishes for end-of-life medical treatment if you become unable to make those decisions yourself. You can also give a trusted person a Health Care Power of Attorney for your health care, giving that person the authority to make day-to-day health care decisions if you can’t.
* A Durable Power of Attorney allows someone else to manage your financial affairs if you’re unable to do so. Your designated agent, as directed in the document, can act on your behalf in legal and financial situations when you can’t. This includes paying your bills and taxes, as well as accessing and managing your assets.
4. REVIEW YOUR BENEFICIARIES. Although your Will and other documents may spell out your wishes, they may not be all-inclusive.
* Check your retirement and insurance accounts. Retirement plans and insurance products usually have beneficiary designations that you need to keep track of and update as needed. Those beneficiary designations will trump what’s in a Will.
* Make sure the right people get your stuff. People sometimes forget the beneficiaries they named on policies or accounts established many years ago.
* Don’t leave any beneficiary sections blank. In that case, the account will have to go through probate, and may be distributed contrary to your wishes.
* Name contingent beneficiaries. These backup beneficiaries are critical if your primary beneficiary dies before you do and you forget to update the primary beneficiary designation.
5. NOTE YOUR STATE'S ESTATE TAX LAWS. Estate planning is often a way to minimize estate and inheritance taxes. But most people won’t pay those taxes.
At the federal level, only very large estates are subject to estate taxes. For 2020, up to $11.58 million of an estate is exempt from federal taxation. However, Washington's state estate tax only exempts the first $2.193 million of a person's estate.
At the federal level, only very large estates are subject to estate taxes. For 2020, up to $11.58 million of an estate is exempt from federal taxation. However, Washington's state estate tax only exempts the first $2.193 million of a person's estate.
If you have questions about estate planning, 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 conference.
An auto collision happens in mere seconds, but the resulting injuries can last a lifetime. We understand the needs of injured people. We know the difficulty of dealing with a loss and, at the same time, having to fight an insurance company for what you need. If you or someone you love was injured in an auto collision due to someone else's negligence, call us for a free consultation. Let us help you get the medical care that you need.
We handle auto collision cases that involve
* Speeding
* Head-on collision
* Rear-end collision
* Traumatic brain injury or other serious injury
* Neck injury or whiplash injury
* Passenger injuries
* Wrongful death
* Driving while intoxicated
The insurance companies will do their best to minimize your claims. That's their job. If you have to face a claims adjustor alone, you may not get all the compensation that you need in order to recover and pay your outstanding medical bills.
In order to prevent that from happening, we work hard to build your case. Just because the injured person is able to walk and talk does not mean that their life is the same. With brain injuries especially, detecting them can be difficult. It is vitally important to demonstrate to a jury just how much an injured person's life is dramatically different than it was before the accident. With over 20 years of personal injury cases behind us, we know how to do this.
We will pursue all possible insurance coverage that may be available. Do not leave your medical treatment to chance. Call us today at 253.858.5434 to find out more.
Estate plans need to be updated periodically. We recommend reviewing your estate plan every three or four years, or more often if major life events occur. Frequently revising your estate plan is important because your circumstances and your family's circumstances change, as do the law, technology, and the state of the world.
While you and your lawyer should regularly review your estate plan every few years, there are several other life events that should also trigger a review.
A NEW ADDITION TO THE FAMILY. Our lives are frequently full of new additions to the family, whether your children get married or have children of their own. Estate changes may not be necessary after a new addition, but you may want to make them to pass down something to your new grandchildren or to a favorite daughter or son-in-law.
A NEW DIAGNOSIS. If you have been given a new diagnosis, you’ll likely spend some time reviewing what can happen as the illness progresses. A new illness may require you to give new health care instructions to the person holding your Health Care Power of Attorney. For example, there may be some treatments you do not wish to receive and some you do. Your loved ones need to know this should you become unable to make your own health care decisions. Communicate your wishes in writing to your health care attorney-in-fact as soon as you’re sure of them.
A SERIOUS FALLING OUT. Over time, your opinion about the people in your life may change. Or, you may feel the same about them, but their circumstances may make them a poor choice as a power of attorney or trustee. Say you discover you and your daughter feel very differently about palliative care. Or, you find an old friend, whom you’ve named as trustee, has developed a gambling addiction. When their circumstances or your feelings change, it’s best to update your estate plan as soon as possible.
DIVORCE OR DEATH. If you and your spouse separate, or if they pass away, you may need to set a new estate plan in motion. Critical positions like beneficiary, powers of attorney, and trustee may now be left unfilled. Although this is a very emotional time, it’s best to make these changes as soon as possible as your estate is very vulnerable following a divorce or death.
INCREASE IN ASSETS OR LIABILITIES. If you’ve added a new asset (or sold one) you may need to account for the change in your estate plans. For some people, these changes may mean closing a 401k or selling the family home.
MOVING TO A NEW STATE. Laws about estate planning and inheritance differ by state, so if you’ve made the move to a new one, you’ll need to update your plan with state laws in mind. Your lawyer should be familiar with these and how they can impact your specific plan.
REMARRIAGE. Cupid works in mysterious ways and you can find love any time. Many newly remarried folks do not immediately realize that marriage will change existing estate plans by default. A Will made before a new marriage is very likely to be contested and the last thing you want is your loved ones in conflict upon your death. Update your estate plan as soon after your wedding as possible and let your children and new spouse know where they stand so they won’t be confused at any change of plans upon your death.
THE DEATH OF A BENEFICIARY, PERSONAL REPRESENTATIVE, OR TRUSTEE. Close friends and even children may pass before you do. In their grief, few people remember that the tragedy leaves their estate plan in disarray. You’ll have to fill any position that is now vacant and spell out an inheritance for any widowed children or the spouse of your deceased loved one.
If you update your estate plan regularly and after these life events, you can feel secure that your wishes will be carried out as you want upon your passing. Plus, when you update your estate plan routinely, it’s less likely your family will experience conflict over it, which is an important legacy to leave them.
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. 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, whichever you prefer.
Although Idaho does, Washington does not recognize common law marriage—that is, legal recognition of marriage without having formalized or registered the relationship. However, Washington courts have adopted a definition for a long-term, unmarried relationship known as a "committed intimate relationship" (CIR). The existence of a CIR creates a presumption that all property acquired during the relationship is owned by both parties.
A court must examine several factors to determine whether a relationship qualifies as a CIR:
* How long has the couple been together/lived together?
* Was the cohabitation continuous?
* Did the parties present themselves as a long-term, committed couple?
* Did the couple intend to be in a long term committed relationship?
* Did the couple share bank accounts, credit cards, etc.?
* Did the couple include each other in their Wills?
ESTATE PLANNING IN A CIR. The final factor in the list that courts utilize is an important question and can help demonstrate the existence or nonexistence of a CIR. The decision to include a partner in your Will requires a lot of thought and discussion. When done correctly, estate planning within the context of a CIR can prevent future conflict and provide clarity for all involved parties.
FAILING TO INCLUDE YOUR PARTNER IN YOUR WILL - REPERCUSSIONS. When partners fail to include each other in their Wills, many problems can occur. Frequently, we see a partner not included in a Will believe they are entitled to certain property from the deceased partner’s estate. Because there is no formally recognized marriage, a partner must initiate litigation in order to receive the property they feel they are entitled to. This is something no one ever wants to endure, especially after the loss of a loved one.
To prevent problems leading to litigation, consider updating your estate planning documents to include the partner in your committed intimate relationship. We have years of experience counseling individuals in the construction of their estate plans. We would be pleased to sit down with you and help ensure the fulfillment of your wishes regarding your estate. Give us a call at 253.858.5434 to set up an appointment today.
We know it’s hard to think about planning for what will happen to your family and your estate after you die. We are here to make the process as painless and easy for you as possible. You may think you need a Will, Revocable Living Trust, Durable Power of Attorney, Health Care Power of Attorney, Living Will, guardian nomination, or maybe all of them together. But then maybe you don’t know what you need or even where to start figuring it out, and that is no problem at all. We can help you design a unique plan to fit your family’s specific needs. Please don’t stress about this, we are here for you.
Our goal in all of this is to give you peace of mind.
We know there are few things as intimidating as the task of completing your estate plan. The best time to plan for your incapacity or passing, though, is while you’re still healthy. With a little time, effort, and guidance from an experienced lawyer, you can develop a plan to take care of your family.
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. 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, whatever is most convenient for you.
Most of our clients have given great thought to protecting their assets and preserving their accomplishments for the benefit of their loved ones. Whether they have nurtured a successful enterprise, are operating a growing business, or are managing a portfolio of rental properties or securities, they have clear ideas about what they want—and don’t want—regarding the distribution of assets to their families and charities.
To ensure that their wishes are followed just as they envision, many of them choose to set up a Trust, either while they're alive (an "inter vivos" or "living trust") or as part of their Will (a "testamentary trust"). Once you make the decision to create a Trust as part of your estate plan, you must then select who can best carry out your plans. “Who do I choose as my trustee?” becomes a critical question. Being a trustee means accepting specific duties and the related liabilities under the law. These include impartiality between the interests of the current and future beneficiaries, properly accounting to all beneficiaries, prudently investing trust funds, managing trust property, and following the clear prohibition against self-dealing.
It is imperative that you understand the strengths and weaknesses of your chosen trustee and that your trustee appreciate their responsibilities and liability to the trust beneficiaries—which may include the trustee.
QUESTIONS TO CONSIDER. (1) Can your trustee separate their personal feelings and interests from those of the beneficiaries and exercise good judgment at all times? (2) Will your trustee treat all the beneficiaries impartially if, for instance, your children are not your spouse’s children? (3) Does your trustee have an ability to analyze investments? (4) Will there be temptation for your trustee to take undue risk in buying investments hoping for a hefty return? (5) Will a child who is balancing their family and career have adequate time to devote to serving as trustee?
SOME OBSERVATIONS:
* Family members are closer to the beneficiaries and are more likely to understand their needs.
* A related trustee may charge the trustee’s costs to the trust but usually does not charge an administrative fee.
* Using a sibling as trustee can exacerbate tensions and resentments among the beneficiaries.
* A relative with no trust experience may abuse the trust through ignorance but will still be liable for substantiated damages.
SHOULD MY LAWYER, ACCOUNTANT, OR FINANCIAL ADVISOR BE MY TRUSTEE? Lawyers, accountants, and financial advisers have special and trusted relationships with their clients. You may be looking for a person who understands your financial and personal goals and is capable of carrying out estate or other financial plans. However, even if a lawyer, accountant or other advisor understands the nature of your business or your financial goals, they may not fully appreciate the scope of the fiduciary duty or the inherent risks and responsibilities of being a trustee.
MORE QUESTIONS TO CONSIDER: (1) Can a legal or tax adviser understand the dynamics of your family? (2) What experience do they have as a trustee? (3) If there is a breach of duty that results in a significant financial loss to the trust, will the trustee be able to personally satisfy a judgment if professional malpractice coverage will not make the trust whole? (4) Is the trust drafted so your beneficiaries can bring such an action against the trustee?
SHOULD A BANK OR TRUST COMPANY BE MY TRUSTEE? Banks and trust companies provide professional fiduciary services and can act independently. These corporate trustees have procedures and systems in place to manage property and invest funds in a fair and consistent manner. They have met capital reserve requirements for added solvency in case they are ordered to replace lost trust value due to a breach of trust.
Choosing a corporate fiduciary may reduce conflicts among family members while providing experienced and professional investment and administrative management. All fiduciaries are held to a very high standard, but this is truer for corporate fiduciaries who have been granted state or national charters authorizing them to provide professional fiduciary services.
EVEN MORE QUESTIONS TO CONSIDER: (1) Will the corporate trustee invest the time to understand my family and their needs? (2) What standards can I expect from the administrator whose decisions directly affect my family? (3) Does the administrator realize the goals of my trust? (4) Will a corporate trustee’s administration and investment services be worth the fees the trustee charges the trust?
Corporate trustees follow specific policies and procedures to ensure unbiased and professional services. In addition, they provide monthly account statements and written explanations for trust decisions. Corporate trustees publish their fees, typically charging between 1% and 3% of trust assets as the annual administrative fee, but fee concessions are often negotiable. Many corporate trustees centralize smaller trusts rather than provide local administration.
In any event, it will be well worth your time to thoroughly discuss your trust with any person you may consider for trustee and to interview a few potential trustees to understand how they work and what they can contribute to your family’s continuing success. If you have questions about Trusts, Trustees, or estate planning in general, give us a call at 253.858.5434 to find out how we can be of service.
