Do you need a lawyer to start a small business? Give us a call to find out how we can be of service.

Do you need a lawyer to start a small business? The expertise that lawyers bring to a business comes at a cost that not all entrepreneurs can afford when establishing their businesses. This leaves would-be business owners asking whether they even need a lawyer to start a small business.

WHY DO SMALL BUSINESSES NEED A LAWYER? Small businesses rely on lawyers to provide legal expertise in some areas in which they might not be well-versed. These include the knowledge to:

* Ensure compliance: A lawyer can help make sure that your business opens and operates by federal, state and local laws.

* Reduce risk: Doing business exposes you to risk, but a business lawyer can help you establish a set of procedures that will limit your risk.

* Minimize liability: A lawyer can help define business terms of service and contract language that restrict your liability in the event of a legal claim.

* Establish agreements: A lawyer can help you establish formal legal documents that govern relationships across the organization. This way, you know what you owe to your partners, employees, vendors, customers or clients and their deliverables in return.

* Master taxes: Lawyers experienced in tax law can help ensure that you pay the taxes you owe; they can also help lower your tax liability by identifying valid business deductions and reimbursements.

WHEN DO SMALL BUSINESSES TYPICALLY USE A LAWYER? Scenarios when start-up small businesses often choose to consult a lawyer can include:

* Choosing a business entity: A lawyer can help you decide between a sole proprietorship, partnership, LLC, or corporation based on the nature and size of your business and the tax and legal pros and cons of each.

* Picking a business name: A lawyer can perform the research needed to ensure that the name you give your business is not in use by another business or trademarked. Operating under an already trademarked name can cause financial and legal woes down the road.

* Forming a business entity: Business owners often retain the services of a lawyer to create partnership agreements or file articles of incorporation. These are necessary documents needed for a small business owner to legally operate their business.

* Licenses/permits: Small business owners often consult lawyers about the licenses and permits they need to obtain to set up shop. Relevant documents might include general business and trade-specific licenses, zoning permits, and others.

* Creating contracts: From terms of service to vendor and employee contracts, lawyers can make light work of preparing bullet-proof contracts for agreements your business enters into with other entities.

* Patenting a business idea: A lawyer can help advise you about how to keep your patent confidential, search for and avoid duplicate patents already filed with the U.S. Patent and Trademark Office, and file a patent application.

DO I NEED A LAWYER TO START A SMALL BUSINESS? Retaining the services of a lawyer is not required as a condition of starting a business. In fact, many of the steps of starting a business cited above can be performed without a lawyer. This means the decision to hire a lawyer or go the DIY route depends on your business entity. Also, consider the amount of time and effort you are willing to expend to get your business off the ground.

Sole proprietorships, being the simplest business entity, can easily be launched on your own without a lawyer. You don’t have to file incorporation documents to start operating. Although, you may need to file an "doing business as" or "dba" name locally, obtain all licenses and permits, and get an EIN from the IRS. Depending on the nature of your business, this usually involves straightforward paperwork you can find online.

Generally, partnerships are the first entity type for which some business owners choose to seek the help of a lawyer. You will need to register an assumed business name at the state or local level. More importantly, creating a partnership agreement for partners to enter into, while not mandatory in most states, is strongly urged.

DO I NEED A LAWYER TO START A CORPORATION OR LLC? LLCs can benefit from a lawyer as these entities often require filing certificates of formation with the state, the appointment of a registered agent, and adherence to other regulatory requirements. Therefore, consider creating an operating agreement. Lawyers can construct agreements tailored to your business.

S-corporation and corporation owners stand to benefit the most from hiring a lawyer as these complex entities usually require filing legal papers. Critical legal documents include filing articles of organization, establishing bylaws, appointing directors and issuing stock to shareholders. Lawyers can walk you through potential pitfalls before signing on the dotted line.

If you're thinking about starting up a new business in the new year, give us a call at 253.858.5434 to see how we can be of service. 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.

How many of us could benefit from having an estate plan? For that matter, what is an estate plan, and how does it differ from just a Will?

state planning often gets neglected. It's easy to delay answering uncomfortable questions such as "What happens to my assets and my loved ones when I die?" So it's no surprise that roughly half of Americans don't have a Will, and even fewer have a full estate plan. How many of us could benefit from an estate plan? For that matter, what is an estate plan, and how does it differ from just a Will?

A Will may be a relatively simple document that sets forth your wishes regarding the distribution of property; it may also include instructions regarding the care of minor children. An estate plan goes much further than a Will. Not only does it deal with the distribution of assets and legacy wishes, but it may also help you and your heirs pay substantially less in taxes, fees, and court costs. We can discuss with you your unique situation to determine what may be a best approach for you.

Most people with assets or a family should have an estate plan. Consider the following:

THE BIRTH OR ADOPTION OF CHILDREN. A number of major life events help shape the need for and scope of an estate plan. Especially significant is the birth or adoption of a child. Consider a young married couple having their first child. How would the child be provided for if either parent (or both) were to die? Preparing a Will provides the opportunity for a parent to name a guardian to take care of a child if something were to happen to the parent, but naming a guardian is just the first step. In addition to a guardian who assumes responsibility for the care and custody of the minor child, a conservator trustee may also be necessary to manage any assets the minor child may inherit.

Some assets can be distributed by the institution, such as a bank or brokerage firm, that holds them, so long as the owner has provided the proper instructions to the financial institution and has named the beneficiaries who will receive those assets. If the owner also has a Will, the directions in the Will should be consistent with the directives provided to the financial institutions. For example, if a beneficiary is named in a transfer on death (TOD) account at a brokerage firm, or payable on death (POD) account at a bank, the account can usually pass directly to the beneficiary without going through probate, and thus bypass a Will. In some states (like Washington), a similar beneficiary designation can be added to real estate, allowing that asset to also bypass the probate process. For assets that do not have a beneficiary designation, the Will is the instrument through which to designate who will receive such assets, and it can detail any related special instructions.

Although a Will is a cornerstone of estate planning, some people may need something more extensive, and, if so, a trust may be beneficial. Trusts can make sense for most assets, including financial assets, retirement assets, real estate, and life insurance. These assets could be handled within a trust for the benefit of the minor, and a professionally managed trust could theoretically produce better results than an account entrusted to a nonexpert guardian who might mean well but might lack the experience or knowledge to properly invest and protect assets.

ESTATE SIZE AND STATE OF RESIDENCE. Another important factor is the size of the estate. Does the value of the estate exceed the estate tax exclusion? In 2020, for a married couple, generally each spouse would have the $11.58 million federal estate tax exclusion. At the death of the first spouse, their exclusion could be taken on by the surviving spouse, allowing the survivor to exclude $23.16 million from federal estate taxes. A thorough estate plan would also include provisions addressing what would happen in the event of a simultaneous death.

Estate planning strategies have been made more complicated in recent years by the introduction of state-level estate taxation. Currently, 17 states (including Washington) plus the District of Columbia impose either an estate or inheritance tax or both. In states that have estate taxes, it's easy to cross the threshold of estate tax liability.

Also consider other issues around how best to manage the inter-generational transfer of assets. For example, if children aren't old enough or mature enough to handle a large inheritance, an estate plan can address this by making provisions through a trust.

PROBATE AND PRIVACY CONCERNS. Another good reason to have an estate plan is to minimize the probate process and its expenses, delays, and loss of privacy. Among the concerns with probate are:

* Loss of privacy: Anyone can access information from the probate court. For example, relatives and creditors could get your probate records to challenge your Will.

* Expense: Probate fees can be substantial, even for the most basic case not involving any conflict.

* Delays: The average uncontested probate may take nine months to a year. With proper planning, these delays and costs, and the loss of privacy, can often be avoided.

PREPARATION FOR INCAPACITY. Many people think of estate planning as a process that needs to be done to prepare for what happens when you die. However, a critical component of estate planning includes documentation in the event you become incapacitated.

A durable power of attorney allows you to name someone to help with your financial affairs in the event that you are unable to manage them yourself. This can be effective immediately upon signing or upon “springing,” which means it goes into effect once you become incapacitated. A health care power of attorney, along with a HIPAA authorization and "Living Will," allows someone to make health care decisions on your behalf.

If you do not currently have these documents, give us a call and we can help you get everything set up. And if you already have these documents, review them to see if you are still comfortable with the named individual(s), and work with your lawyer to make sure the documents are current and accurately reflect your wishes.

CHARITABLE GOALS. If an estate consists of sizable assets and the owner has a desire to give to charity, there are a number of ways to incorporate those philanthropic goals into an estate plan. While charities can be named as beneficiaries in a Will, it may be more advantageous from a tax perspective to leave non-Roth IRA assets to the charity and assets that pass through your Will to individuals.

It may be more beneficial from a tax perspective to name your favorite charity or a trust as a primary or a contingent beneficiary. For example, a charity can be designated to receive a certain percentage of your retirement plan assets, or if you were seeking to establish an income stream for a charity throughout your lifetime, one possible option would be to establish a charitable lead trust (CLT). Upon termination, if the CLT were properly established, the remaining balance would then go to the grantor's beneficiaries. A properly established charitable remainder trust (CRT) would do the reverse, giving beneficiaries an income stream while the grantor (or the person who establishes the trust) is alive, with the remainder going to the grantor's favorite charity. Either option—CLT or CRT—can have multiple benefits, among which are:

* Reducing or eliminating capital gains tax on assets that have appreciated

* Claiming income tax deductions for charitable giving

* Reducing estate taxes

* Giving to your favorite charity

* Giving to your designated beneficiaries

We can help you sort through the options that might be right for you.

BUSINESS SUCCESSION. If you own a business, have you considered how best to plan for the business once you have passed away? If you plan to keep it in the family, consider creating a structure that makes it easier to transfer the business’s assets to other family members, such as a family limited partnership or a family limited liability company.

There are many options. We can help you select one that is appropriate for you in light of your specific situation.

LIFE STAGE. Engaging in estate planning can be important at various points throughout your lifetime; there is no ideal age at which to begin the process. Certainly, new parents will want to consider their child’s welfare, and plan appropriately. As children grow, your financial life becomes more complex, and as your assets and needs grow and change, your existing estate plan should be reviewed to make sure it still meets your current needs, and that any future needs are anticipated.

SPECIAL CIRCUMSTANCES. Two of the most common special circumstances that may affect estate planning decisions are blended families and concerns about families with special needs. Of course, there may be other factors that affect a particular situation.

Blended families can make estate planning more complicated. For example, a parent may want to leave a different inheritance to biological children than to stepchildren, or the parent may want to protect their biological family's inheritance in the event that a spouse remarries. A solid estate plan can help prepare for these and other scenarios.

Regarding disabilities, there are specific trusts that are set up for the benefit of a beneficiary who is disabled, structured in a way that allows the beneficiary to continue to qualify for public assistance, such as Social Security Disability Insurance. Again, we can help establish a trust that will meet your specific situation.

If you have estate planning or other questions about how 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 client 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 injured in an auto collision, you may be asking yourself whether it's worth it to call a lawyer. Injury victims get better results with lawyers. Here's why.

If you have been injured in an auto collision, you may be asking yourself whether it’s worth it to call a lawyer. A study conducted by the Insurance Research Council suggests people who have suffered bodily injuries in an auto collision due to driver, manufacturer, and/or government negligence win 3.5 times more in settlement compensation while represented by a lawyer than injury victims who don’t hire a lawyer. In fact, the study found that in 85% of cases where an insurance company does settle an injury claim, the injured party had hired a lawyer.

Why do injury victims who hire experienced lawyers get better settlement results?

WE KNOW INSURANCE COMPANY TACTICS. Insurance companies know how to intimidate injury victims – it’s what they do for a living. They’ll tell you things like:

* You were actually to blame for the accident.

* You can’t prove in court the full long-term physical and emotional impact of your injury.

* Your doctor’s assessment isn’t good enough and you need to submit to an examination by one of our approved health care professionals.

* Your injuries aren't as bad as you're claiming they are.

Additionally, they will use every tool at their disposal to tie up your claim settlement in an attempt to make you desperate enough for money to pay medical bills and your living expenses that you are willing to settle for an amount less than what you deserve.

WE KNOW HOW TO ASSESS DAMAGES. Calculating general damages (those things you can't put a dollar figure on, for example, pain and suffering, emotional distress, inconvenience, etc.) and special damages – namely things like medical bills, rehabilitation costs, property damage, lost wages, and other out-of-pocket expenses – takes experience, knowledge, and research.

WE HAVE EXPERIENCE ASSESSING LONG-TERM EFFECT OF INJURIES. One thing a lot of people trying to handle their own injury claim with the insurance company don’t consider are the costs associated with the future ramifications of their injuries. What if you need to go to a chiropractor periodically for the rest of your life due to your whiplash injury? Will your injury prevent you from returning to your job or reduce your effectiveness to a degree that will prevent you from earning promotions or performance bonuses?

We work with your medical team to assess the future effects of your injury and recovery. We have represented injury victims for over 20 years and have extensive experience accurately assessing future medical costs and lost income potential.

WE KNOW HOW TO IDENTIFY AND HOLD THE NEGLIGENT PARTIES RESPONSIBLE. In some personal injury cases, culpability isn’t as simple as blaming the other driver. If another driver runs a red light and hits your vehicle, injuring you and your family, there could be multiple parties responsible. If that driver had been slamming on their brake but the car wasn’t stopping, the manufacturer of their brake pads or the mechanic who installed them incorrectly may be negligent parties. If the traffic light was faulty, the municipality may hold some responsibility. If the driver was drunk, the bar that over-served them may be a negligent party as well. We'll hire investigators, medical experts, and even accident recreation specialists to gather data and uncover all available details to ensure everyone who is responsible for your injury is being held accountable.

WE KNOW THE STATE AND LOCAL LAWS GOVERNING PERSONAL INJURY CASES AND CAN FIGHT FOR YOU IN COURT. The legal system isn’t comprised of a set of universal rules. Every state has a different set of laws governing personal injury cases and damage calculations. You can try to study up on your legal situation yourself, but that is a time-consuming process and there’s no guarantee you’ll be able to represent yourself well enough to get the fair claim settlement you deserve.

An experienced lawyer has spent their professional life learning the:

* Ins and outs of personal injury law

* Relevant statutes

* Legal precedents pertaining to personal injury cases

* Local jury verdicts in similar cases

* Local insurance companies, adjusters, and defense attorneys

If an insurance company simply isn’t willing to give you the settlement you know you need and deserve, it can be incredibly difficult for you to take them to court and win without a lawyer on your side. We make our living taking insurance companies to court and negotiating the fair settlement our clients need to recover and move on.

CONTINGENT FEES - IF WE DON'T WIN, YOU DON'T PAY. The majority of personal injury lawyers will work on a contingent fee basis, meaning they are paid a percentage of the ultimate recovery they obtain for your case. Injury victims don’t have to pay for legal representation out of their own pocket, which is helpful at a time when they are being inundated with medical bills and may be without an income due to their inability to work. If the lawyer fails to win your case, you owe them no attorneys fees for the work they did on your case.

If you or a friend, family member, neighbor, or co-worker has been injured in an auto collision, give us a call at 253.858.5434 set up an appointment today.

COVID-19 has altered our daily lives. Now it is especially important to have estate planning documents to control assets at death and enable others to make decisions if we are unable.

The other day, we spoke with a potential new client who wants to get her estate plan done as soon as possible. She was just released from the hospital after being treated for COVID-19, which permanently damaged her lungs, reducing them to 30% of their previous capacity. Understandably, her own mortality is on her mind.

The COVID-19 pandemic has altered our daily lives. During this time, it is especially important to have proper estate planning documents to control the disposition of assets at death and to enable others to make our financial and medical decisions if we are unable.

Imagine a situation where you suddenly find yourself sick in the hospital, and no longer able to manage your financial affairs, pay your bills, or make your own medical decisions. If this happens to you without proper estate planning documents in place, you and your family could be at serious financial and medical risk.

There are some common issues families face when their loved one is incapacitated without proposer estate planning documents:

* Inability to access their loved one's bank account to pay bills

* No legal authority to write checks or apply for medical insurance/benefits to pay for hospital stays

* No power to make medical decisions on their loved one's behalf

* Long, expensive, stressful court hearings to get the legal authority to make a financial and medical decision on their loved one's behalf

Fortunately, with proper estate planning, you and your family can be protected from these types of situations. Some essential estate planning documents you should have in place include:

A WILL. Your Will only becomes operative at death. This document controls assets that you own that are not owned jointly with a right of survivorship, have a “transfer on death” or “pay on death” designation, or are governed by a beneficiary designation (naming someone other than your estate). The person that handles your affairs pursuant to the terms of your Will is your Personal Representative (formerly called an "Executor").

A DURABLE POWER OF ATTORNEY. Your DPOA appoints a substitute decision maker (your agent) to act on your behalf regarding your financial matters (e.g., paying bills, entering into real estate transaction, etc.). Your DPOA is only effective during your lifetime. Your DPOA can spring into effect upon incapacity or be effective immediately at the creator’s choosing.

A HEALTH CARE POWER OF ATTORNEY. Much like your DPOA, your health care power of attorney appoints a substitute decision maker to act on your behalf regarding your health care decisions (for example, admission to a skilled nursing facility). Your health care power of attorney is only effective during your lifetime and becomes effective when you are unable to make or communicate decisions yourself.

A LIVING WILL. Your "Living Will" (technically called a Directive to Physicians) sets forth your intentions as it relates to certain end-of-life care matters (e.g., do you want a feeding tube; do you want to be put on a ventilator?) Putting these wishes in writing and discussing them with the person holding your health care power of attorney and other loved ones can prevent your family from speculating as to what your wishes may be and from the emotions that come with making such decisions on your behalf.

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 masks and other appropriate social distancing protocols in place), by phone, or via video conference.

Estate planning for small business owners is a detailed process. There are multiple questions to answer, scenarios to think about, and hypotheticals to address. We can help!

Estate planning for small business owners is a detailed process. There are multiple questions to answer, scenarios to think about, and hypotheticals to address. For this reason, you shouldn’t attempt to put together an estate plan on your own. One missed issue can result in years of litigation if you die or become incapacitated. It’s vital to get the advice of a lawyer and financial professional who you trust and who have significant experience in business estate planning. Here are the basic steps of estate planning for small business owners:

Step 1: Start With a Will and Basic Estate Plan. The following basic documents should form the core of your business estate plan:

* A Will that states your wishes about how your business and other property should be divided upon your death.

* A durable power of attorney, which appoints another individual to manage your finances and undertake business transactions in the event you’re incapacitated.

* A healthcare power of attorney, which appoints another individual to make medical decisions for you if you cannot do so for yourself.

Without a Will, your business will be divided up according to the default laws in your state. A Will, durable power of attorney, and healthcare power of attorney ensure that someone you trust inherits business property and manages business transactions on your behalf.

Beyond these basic documents, there are deeper things to talk through with your lawyer and financial advisor. Just a basic Will might not be sufficient for your needs. By placing your assets into a trust and titling business assets in the trust’s name, you can make things much easier on your surviving spouse and family.

Step 2: Plan for Tax Efficiencies. A big part of estate planning is tax planning. Tax laws are constantly in flux, so this is an ongoing discussion you should have with your lawyer and financial advisor.

The federal government levies an estate tax, which must come out of your estate before your beneficiaries receive their inheritance. Currently, the 40% federal estate tax only applies to estates that are valued at more than $11.58 million. That leaves most small businesses in the clear. But states also charge their own estate and inheritance taxes. Here in Washington, the exemption amount is $2.193 million.

There are ways you can minimize estate taxes with good planning. For example, dividing up your estate into multiple trusts or creating a family limited partnership allows you to reduce your tax burden. An experienced lawyer should be able to assist you further with this.

Even if estate taxes aren’t an issue for you, other tax considerations are still at play. For example, a good chunk of your assets might currently be in a 401(k), IRA, or other retirement account. Those assets will flow to your beneficiaries upon your death and will be taxed on withdrawal later. Your lawyer or financial advisor can discuss specific ways to tap into retirement money for business without tax penalties.

Step 3: Sort out Issues in Family-Owned Businesses. Family-owned businesses can face particularly prickly estate planning issues. It’s not uncommon, for instance, for there to be a situation where one child of a business owner is interested in taking over the business and the other isn’t. Your lawyer and financial advisor should be able to help you address issues like these in your estate planning documents. For example, one solution is to grant all of the business assets over to one child and the remaining assets to the other. That way, you can still be “fair” but avoid future inter-sibling fights that could put your company at risk.

Another common concern with family-owned businesses is to keep the business assets within the bloodline. If a small business owner gives business assets to their child, those assets may be jointly owned by the child and the child’s spouse under marital property laws. Same goes if the business owner passes their assets to a spouse. Any future spouses of that person may also own in the assets. Fortunately, there are ways to keep the business in the family with careful estate planning.

Step 4. Draft a Buy-Sell Agreement. If your small business has multiple owners, then a buy-sell agreement is an essential part of your estate plan. Buy-sell agreements specify who can buy an owner’s share of a business, under what conditions, and at what price. A buy-sell agreement keeps a business in the hands of existing owners when one owner dies, becomes disabled, retires, or otherwise exits the business. Usually, the agreement grants existing owners first rights to buy the exiting owner’s share of the business according to a pre-set valuation formula. Those owners will buy out the exiting owner’s share either by directly paying the owner (if still alive) or the owner’s estate. The agreement might also set rules around when an exiting owner’s ex spouse can lay claim to business assets as part of a divorce proceeding. Buy-sell agreements can be structured in multiple ways, so be sure to consult a lawyer to figure out which way is best for your company.

Step 5: Buy Life and Disability Insurance. Life insurance is a must for small business owners. Life insurance coverage provides your family or named beneficiary with a source of income when you die. In addition, life insurance can guarantee an income stream to the business to keep your company operating in your absence. Disability insurance provides similar coverage if you experience a short-term or long-term disability. In most cases, business owners need to purchase two different types of life and disability policies:

* A personal life and disability policy with your family as the beneficiaries

* A key person life and disability policy with the business as the beneficiary

Think of your family first, and make sure they’re well taken care of should you die or become disabled. Term life insurance provides coverage if death occurs within a specific time frame. Whole life insurance comes with an investment component and remains in place for your entire lifetime. Disability coverage can be purchased separately or added on as a rider to a life insurance policy. Your lawyer or financial planner can help you figure out how much coverage to purchase, based on your age and health, your family’s lifestyle, and the age of any children in the household.

Key person insurance is similar to personal life insurance, but the beneficiary is the company instead of a family member. If the key person of the business dies or becomes disabled, the company gets a payout equal to a multiple of the owner’s salary or the business’s profits. The remaining members of your business can utilize that money to pay employees, train staff, and keep the company afloat. Key person insurance can be a lifesaver for mom-and-pop shops, where the owners are critical to the business’s success.

Step 6: Create a Succession Plan. Creating a succession or continuity plan is where the lines blur between estate planning and succession planning. Your estate planning documents specify who is entitled to your estate upon your death or who should run your business if you’re disabled. Succession planning specifies how you, your family, and your company will prepare for a transition in ownership.

The focus of succession planning is keeping a viable business running, or preparing the business for sale, in your absence. A succession plan is a written document that starts off much like a business plan. It contains background information about your business, your target market, and your competitors. It goes on to list the proposed organizational structure of the business in the event of a succession and what positions key personnel will assume in the event of your death or disability. You’ll also want to identify training opportunities or compensation adjustments for any of the key staff members. In the finances section of your succession plan, you’ll want to outline the financial state of the business, such as profits, assets, and the current valuation.

Remember to keep your succession plan document consistent with your Will and other estate planning documents. This will prevent unnecessary and costly litigation down the line.

Step 7: Have a Discussion With Affected Parties. After you create your estate plan, make sure all the affected parties know what’s at stake. These are hard topics to talk about but ideally, you should consult your family members and friends throughout the process. This helps avoid conflict down the line. For instance, if you’re unsure about one of your children’s interest in the family business, you should find out for estate planning purposes.

Once the estate plan is in place, you and your family should sit down with your financial advisor and lawyer to make sure everyone understands what’s in the plan. This discussion doesn’t need to reveal specific assets of value or the size of the estate, particularly if you have young children. Family members should also know how and where to locate your Will, succession plan, and other estate planning documents.

Step 8: Update Your Estate Plan as Necessary. Once you have your estate plan in place, you’ll have to update it on a regular basis to make sure it reflects current laws and your current wishes for what you want to happen to your business.

Tax laws change regularly, both at the federal and state level, which can upend your current plan. Similarly, life events, such as a divorce, a child’s marriage, or the birth of a child or grandchild, can all affect your estate planning efforts. Having a lawyer who intimately understands your business’s needs can help you keep up with transitions over the years.

Don't delay. Estate planning is important for everyone, but especially for small business owners. Your company is one of your biggest assets and something that you’ve worked very hard on. Business estate planning lets you ensure that your company continues as a successful, thriving venture. It starts with creating a Will, but estate planning for business owners is more complicated than that. There are tax, insurance, and family issues to think through and discuss with your lawyer to ensure that you, your loved ones, and your business will be well taken care of now and in the future. If you have questions, give us a call at 253.858.5434 to see how we can be of service. 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.

We provide legal services in a welcoming and nonjudgmental environment. We serve clients from all walks of life. We establish relationships with our clients, treating them with dignity and respect.

At our law firm, we provide quality legal services in a welcoming and nonjudgmental environment for clients facing difficult legal circumstances in life. We proudly serve clients from all walks of life. We establish personal relationships with our clients, always treating them with dignity and respect.

You will not be just a case or file to us. You will find that we genuinely care about your future, and we will work hard to help you prevail in whatever legal hurdles you are facing.

When you walk into our office, you can expect to benefit from all of the following hallmarks that set our law firm leagues apart from others:

* A warm and welcoming environment: Here's the thing - oftentimes when you come to see a lawyer, chances are things aren't going great. We understand the difficulties that you are facing and we don't judge. Our ultimate goal in every case is to help improve our clients' lives.

* Personal service: We inform clients of the status of their cases, and we devote individualized attention to every case.

* Straightforward legal guidance: We will walk you through your options and help you make an informed decision on how to proceed.

* A valuable network of connections: We have built a valuable network of connections to assist clients with obtaining whatever resources, services, programs, or treatment they need.

If you, a family member, friend, neighbor, or co-worker needs legal advice, give us a call at 253.858.5434 to set up an appointment today. We serve 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.

The Importance of Medical Records, Doctors' Notes, Medical Bills, and Other Medical Evidence in Proving Personal Injury Claims

This week, we settled a personal injury case for the full insurance policy limits - the full amount of the at-fault driver's insurance, plus the full amount of our client's underinsured motorist insurance (UIM) coverage. All because of one chart note in the client's medical records. Medical evidence is the foundation for all personal injury cases and can make or break a case. Medical records, doctors' notes, and medical bills are used by both the plaintiff and the defendant to determine liability, prepare for expert review, and decide damages. If you or a loved one has been injured by the negligence of another person, it is important to have an experienced lawyer review your medical records to determine if you are eligible for financial compensation. In particularly complex cases, we often even hire a nurse to review the records and provide us with a report about the client's injuries, diagnosis, prognosis, etc.

Medical records are evidence. Good evidence is essential to prove your insurance claim or win your personal injury lawsuit. The following are some of the most common types of medical records used as evidence in personal injury cases:

* Ambulance/EMT records

* Emergency room records

* Doctor’s notes

* Test results/diagnosis

* Doctor’s recommended course of treatment

* Description of any pain experienced during treatment

* Estimated recovery time

* Required future medical treatments

* Prescription/pharmacy records

* Medical bills/expenses

* Estimated future medical bills/expenses

Medical records are also documentation; they provide proof of your injuries. Records from the emergency room, doctor’s office, hospital, physical therapist, chiropractor, massage therapist, pharmacy, and other medical professionals can be used as evidence to show what type of injuries you suffered, what type of treatment was given, how much pain you suffered, and how the injury has affected and will continue to affect your life.

Medical records also prove your damages. The lack of prompt and necessary medical attention can have a negative impact on your case. As can unexplained interruptions in treatment or "No Show" notations in your chart notes. Without the necessary medical records as proof of damages, the insurance company can argue that your injuries were not that serious or that you made a full recovery. Unfortunately, skipping medical treatment due to transportation problems, financial concerns, or work-related issues may still negatively affect your case.

Consulting an experienced lawyer and following their advice can help you obtain a fair and reasonable settlement or verdict. If you or a friend, family member, neighbor, or co-worker has been injured in an auto collision and needs legal advice and representation, give us a call at 253.858.5434 to set up an appointment for a free initial consultation today. We are available to meet in person (with appropriate social distancing protocols in place), by phone, or via video conference.

Blended families face complex estate planning challenges. We can answer your questions about an estate plan that addresses your family's unique situation.

Blended families can face complex estate planning challenges. Issues can arise between spouses or between stepchildren and step-parents. Typically, individuals in blended families want to provide for their spouse as well as their children from their previous marriage. In some cases, they also want to provide for the children from their spouse’s previous marriage.

Several trends related to divorce have increased the number of blended families:

* More than 50% of American marriages end in divorce.

* Approximately 60% of American remarriages end in divorce.

* Approximately 43% of American marriages are remarriages for at least one party.

* There are approximately 1.16 million new divorces in the U.S. each year.

* In the U.S., 54% of divorced women remarry within five years.

* The potential for children to be disinherited.

* Delays in the children’s receipt of inheritance until after the death of their parent’s spouse.

* The need to protect assets from former spouses.

* Disputes over division of authority or responsibility.

WHAT ESTATE PLANNING STRATEGIES CAN HELP? Depending on a family’s situation and needs, an experienced lawyer can help select and execute one of the following strategies.

(1) Prenuptial and Post-Nuptial Agreements. These agreements should address:

* The parties’ rights and responsibilities during their marriage with regard to living arrangements, division of obligation to pay expenses, and obligation to purchase and maintain long-term care insurance.

* The parties’ rights and obligations if they divorce.

* The rights and obligations of the surviving spouse in the estate of the deceased spouse.

(2) Family Trusts. These trusts are designed to benefit the surviving spouse and children. When preparing a Family Trust, the following should be considered:

* Distributions. The trustee may be permitted to make distributions to the surviving spouse and designated children.

* Unitrust distributions. A spouse may be given an annual unitrust distribution equal to a percentage of the trust. For example, the spouse might receive 4% of the total annual return on assets held in the trust or 4% of the total trust assets as calculated on an annual basis.

* Trustee selection. A disinterested trustee may be appointed to help avoid conflicts of interest and strained family relationships while permitting distributions for “any appropriate purpose.”

* Death of spouse. The trust may stipulate that, upon your death, the remainder of the trust will be distributed to your children from a previous marriage or to children from both marriages.

* No contest clause. Including a “no contest” provision in the trust minimizes the risk that the trust will be challenged.

(3) Dynasty Trusts. These trusts are designed to benefit your child and their descendants. With the goal of keeping money in the family, the trust protects assets from the child’s creditors, including divorcing spouses, while maintaining maximum control for the child. The trust may include the following provisions:

* That your child will be the trustee unless they are involved in a divorce action or a lawsuit.

* That your child, acting as trustee, can distribute principal to or for the benefit of themselves or to their descendants.

* That there will be a disinterested trustee who can distribute principal for any appropriate purpose.

* That the trustee will have discretion to distribute income to or for the benefit of the child.

* That the trust terminates at your child’s death and the remaining principal is paid to your child’s descendants, not to your son- or daughter-in-law.

* A "spendthrift" clause is a provision that expressly says your child has no right to terminate the trust and protects the assets in the trust from creditors.

(4) Irrevocable Life Insurance Trusts (ILITs). An ILIT lets you provide for your children with life insurance and use your remaining estate to provide for your spouse. The trustee of the ILIT purchases a life insurance policy on your life and you pay the premiums. ILITs offer two major advantages. They prevent children from being disinherited because the trust names them as beneficiaries of the life insurance policy. They also ensure that children will receive inheritances promptly because the policy will pay the trust immediately upon your death. There also are some variations on this strategy in which you can:

* Purchase your own life insurance policy and name your children as beneficiaries. The estate tax consequences of this technique must be considered.

* Have your children from a previous marriage own the policy while you pay the premiums, utilizing your Annual Exclusion gifts.

(4) FLPs and FLLCs. A Family Limited Partnership (FLP) is an ideal tool for a family that owns real estate. The real estate is transferred to the partnership, which is composed of parents and children. A Family Limited Liability Company (LLC), comprised of family members, is similar to an FLP. Both arrangements can be used to protect family assets from the claims of spouses and former spouses. FLPs and FLLCs also can protect family assets from the claims of your children’s spouses or former spouses.

(5) Life Estates. Often, in a second marriage, one spouse moves into the home of the other. The home is not always retitled jointly – nor should it be. The individual who owns the home often wants the spouse to have the right to live there for their lifetime. This can be accomplished by giving the surviving spouse a life estate in the home. Individuals who choose this strategy should attach certain conditions to the life estate, such as an obligation on the part of the surviving spouse to pay the home’s taxes, insurance, and maintenance expenses. Consideration should be given to requiring an automatic termination of the life estate if the surviving spouse moves out or abandons the property for a certain period of time. Also, provisions should be made regarding whether the property can be rented or sold and, if so, who is entitled to the rent or proceeds of the sale.

(6) Contracts to make a Will. When appropriate, a contract to make a Will offers a simple estate-planning solution. Often, spouses want their Wills to stipulate that everything will be left to the surviving spouse, with remaining assets to be divided on some basis between children from both families upon the death of the second spouse. But, at the death of the first spouse, the Will of the surviving spouse typically becomes non-enforceable since it can be changed to disinherit the children of the first spouse. It is possible for the parties to enter into a contract to make a Will, which essentially prohibits the surviving spouse from changing their Will. The disadvantage of this strategy is that the surviving spouse may have valid reason for wishing to change the Will, completely unrelated to disinheriting the children of the deceased spouse or delaying their inheritance.

(7) Qualified Terminable Interest Property Trusts (QTIPs). With a QTIP, the Will or trust of the spouse who dies first gives the surviving spouse the right to income from assets held in the trust. This income interest has the effect of deferring the taxes due at the death of the first spouse. It also is possible to draft a QTIP to include the right for the trustee to make distributions of principal exclusively to the surviving spouse. The surviving spouse has no right to direct payments from the QTIP. Upon their death, the trust typically distributes assets to the children of the first spouse. In most cases, a QTIP trust is drafted as part of an overall estate plan, either leaving a portion of the assets outright to the children or leaving those assets to a credit shelter trust for the benefit of the surviving spouse and the children from one or both marriages.

(8) Disclaimer Trusts. When assets are left outright to a surviving spouse, he or she may be given the right to “disclaim” them into a Disclaimer Trust. This very popular type of trust should not be used if there is concern that the surviving spouse may disinherit the children of the deceased spouse.

If you're part of a blended family and have questions about preparing an estate plan that addresses your family's unique situation, 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.

Happy New Year!

The Law Offices of P. Stephen Aita wish you a happy, healthy, and prosperous New Year! 2020 has been a year full of challenges, but we have all adjusted and persevered the best we could. Our law firm remains optimistic, hopeful, and always ready to passionately represent our clients. We have remained open by working remotely when possible and with mandatory mask usage and appropriate social distancing protocols in place at our offices. We have continued to be extremely busy, successfully focusing on ongoing and new cases. We hope that you ring in the New Year in a safe way, and that you are able to reflect on the good qualities that still exist in all of our lives.

If you're starting your own business in 2021 or you're ready to pass your business on to the next generation, it's important to seek legal advice from an experienced lawyer.

If you are ready to start your own business or pass your small business on to the next generation, it is important to seek legal advice from an experienced lawyer. We provide high-quality legal services to small business owners. Whether you are starting a new business, buying or selling an existing business, or simply in need of professional legal support, we provide professional support and effective legal guidance every step of the way.

We advise clients with all aspects of their small businesses, including:

* The formation of a small business

* Dissolving a business

* Selling a business

* Litigation

* Writing, modifying, or challenging contracts or other corporate documents

We offer experienced legal insight to our clients while being conscientious of their personal and financial needs. We guide our small business clients through all types of legal matters with honest and up-front communication in order to help them avoid potential legal mistakes in the future of operating their company. By working closely with our clients, we maintain trust and find the most successful resolution of legal issues as quickly as possible.

Whatever stage of the small business cycle you are in, we may be able to take care of your legal issues while you focus on growing your company. We offer sensible and knowledgeable advice and cost-effective legal solutions to all types of legal matters.

If we can be of service, 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.

Put your estate plan on your list of New Years resolutions.

It's that time of year when we start thinking about resolutions for the New Year. Sometimes it feels like people devote more time choosing a place to order dinner from than they do estate planning—deciding who will inherit their assets after they’re gone. It may not be as fun to think about, but without estate planning, you can’t choose who gets everything that you worked so hard for.

Estate planning isn’t only for the rich. Without a plan in place, settling your affairs after you go could have a long-lasting—and costly—impact on your loved ones, even if you don’t have a pricey home, large IRA, or valuable art to pass on. Need some reasons to add putting an estate plan in place to your list of New Years resolutions?

(1) AN ESTATE PLAN PROTECTS BENEFICIARIES. If estate planning was once considered something that only high net worth individuals needed, that’s changed. All families need to plan for when something happens to those who are earning money for the family. You don’t have to be super rich to have asset worth protecting, like a house, a retirement plan, a vacation house, a brokerage account, etc., all of which you’ll want to pass on to your heirs. Even if you’re only leaving behind a house, if you don’t decide who receives the property when you pass away you won’t have any control over what happens to it.

That’s because the main component of estate planning is designating heirs for your assets, whether it’s a vacation cabin or a stock portfolio. Without an estate plan, the courts will often decide who gets your assets, a process that can take years, rack up fees, and get ugly. After all, a court doesn’t know which sibling has been responsible and which one shouldn’t have free access to cash. Nor will the courts automatically rule that the surviving spouse gets everything.

Here's what it comes down to: If you die without a Will, which is a vital part of an estate plan, state law will decide who gets your assets, not you.

(2) AN ESTATE PLAN PROTECTS YOUR KIDS. Nobody likes to think about their own death, but if you’re the parent of small children, you need to prepare for the unthinkable. This is where the Will portion of an estate plan comes in. To ensure that your children are cared for in a manner of which you approve, you’ll want to name their guardians in the event that both parents die before the kids turn 18. Without a Will that names these guardians, the courts will step in to decide who will raise your children.

(3) AN ESTATE PLAN CAN SPARE YOUR HEIRS A BIG TAX BILL. Estate planning is all about protecting your loved ones, which means in part giving them protection from the IRS. Essential to estate planning is transferring assets to heirs with an eye toward creating the smallest possible tax burden for them.

Even just a bit of estate planning can enable couples to reduce much or even all of their federal and state estate taxes and state inheritance taxes. There are also ways to decrease the income tax beneficiaries might have to pay. Depending on your family's situation, without an estate plan, the amount that your heirs will owe the IRS could be quite a lot.

(4) AN ESTATE PLAN HELPS PREVENT FAMILY FIGHTS. We’ve all heard the horror stories. Someone with money dies and the war between family members begins. One sibling may think they deserve more than another, or one sibling may think they should be in charge of the finances even though that might not be within the sibling's particular skill set. Such squabbling can get ugly and end up in court, with family members pitted against one another.

Stopping fights before they start is yet another reason why an estate plan is necessary. This will enable you to choose who controls your finances and assets if you become mentally incapacitated or after you die and will go a long way toward quelling any family strife and ensuring that your assets are handled in the way that you intended. It also will help you make individualized plans, if necessary—to take care of a child with health problems or to set up a Trust for one who might be better off not inheriting a lump sum. It can also help you give more to the child who did most of the work of caring for you in your later years or less to the one whose extensive education you funded while paying far less for their siblings.

Deciding whether to divide your estate exactly equally is one of the key tasks you need to think through. And, of course, if you've had more than one spouse—or have children from more than one family—an estate plan is urgent.

Here's the bottom line. If you want your assets and your loved ones protected when you can no longer do it, you will need an estate plan. Without one, your heirs could face big tax burdens and the courts could designate how your assets are divided—and even who gets to raise your children. If you don't have an estate plan or you have one that needs to be reviewed and updated, 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.

Any number of situations indicate a need for a well thought out estate plan that's specific to you and your family. We've been advising clients regarding their estate plans for 24 years.

Do you own a house or other real estate? Do you have kids? Grandkids? Do you own a vacation place or a rental property in another state? Are you in a "blended family" situation, where you and your spouse each have children from a previous marriage? Do you own a small or family-owned business? Are you philanthropically minded and want to do some long term planning for gifts to charities? Is your estate worth more than $2.2 million? Any of these things indicate a need for a well thought out estate plan that's specific to you and your family. We have been representing clients regarding their estate plans for 24 years. 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, although we are open for in-person Will signings, we are doing all other client meetings by phone or video conference until this latest stay-at-home order is lifted.

A lot of people think having an estate plan just means signing a Will. But there is much more to an estate plan to make sure everything goes seamlessly upon your death or incapacity.

A lot of people think having an estate plan simply means signing a Will or a Trust. However, there is much more to include in your estate plan to make certain all of your assets are transferred seamlessly to your heirs upon your death. A successful estate plan also includes provisions allowing your family to access or control your assets should you become unable to do so yourself.

Every estate plan should include:

* Will/Trust

* Durable power of attorney

* Beneficiary designations

* Health care power of attorney

* Guardianship designations

In addition to these documents and designations, a well-laid estate plan also should consider the purchase of insurance products such as long-term care insurance to cover old age, a lifetime annuity to generate some level of income until death, and life insurance to pass money to beneficiaries without the need for probate.

WILLS AND TRUSTS. A Will or a Trust may sound complicated or expensive—something only rich people have. That is an incorrect assumption. A Will or Trust should be one of the main components of every estate plan, even if you don't have substantial assets. Wills ensure property is distributed according to an individual's wishes (if drafted according to state laws). Some Trusts help limit estate taxes or legal challenges. However, simply having a Will or Trust isn't enough. The wording of the document is critically important.

A Will or Trust should be written in a manner that is consistent with the way you've given the assets that pass outside of the Will. For example, if you've already named your sister as a beneficiary on a retirement account or insurance policy (assets that typically pass outside of a Will to a named beneficiary), you don't want to give the same asset to a cousin in the Will because it could lead to a Will contest. Not to mention that both individuals could become bitter toward each other (and you) during a legal battle.

DURABLE POWER OF ATTORNEY. It's important to draft a DPOA, so an agent or a person you assign will act on your behalf when you are unable to do so yourself. Absent a power of attorney, a court may be left to decide what happens to your assets if you are found to be mentally incompetent, and the court's decision may not be what you wanted.

This document can give your agent the power to deal with real estate, enter into financial transactions, and make other legal decisions as if they were you. This type of DPOA is revocable at a time of your choosing, typically a time when you are deemed to be physically able, or mentally competent, or upon death.

In many families, it makes sense for spouses to set up reciprocal DPOAs. However, in some cases, it might make more sense to have another family member, friend, or a trusted advisor who is more financially savvy act as the agent.

BENEFICIARY DESIGNATIONS. As noted earlier, a number of your possessions can pass to your heirs without being dictated in the Will (e.g., 401(k) plan assets). This is why it is important to maintain a beneficiary—and a contingent beneficiary—on such an account. Insurance plans should contain a beneficiary and a contingent beneficiary as well because they also pass outside of a Will.

If you don't name a beneficiary, or if the beneficiary is deceased, your probate estate becomes the beneficiary, thereby making the asset subject to taxes and creditors' claims.

Note: Named beneficiaries should be over the age of 21 and mentally competent. If they aren't, a court may end up getting involved in the matter.

HEALTH CARE POWER OF ATTORNEY. A health care power of attorney designates another individual (typically a spouse or family member) to make important health care decisions on your behalf in the event of incapacity.

If you are considering executing such a document, you should pick someone you trust, who shares your views, and who would likely recommend a course of action you would agree with. After all, this person could literally have your life in their hands.

Finally, a backup agent should also be identified, in case your initial pick is unavailable or unable to act at the time needed.

GUARDIANSHIP DESIGNATIONS. While many Wills or Trusts incorporate this clause, some don't. If you have minor children or are considering having kids, picking a guardian is incredibly important and sometimes overlooked. Make sure the individual or couple you choose shares your views, is financially sound, and is genuinely willing to raise children. As with all designations, a backup or contingent guardian should be named as well.

Absent these designations; a court could rule that your children live with a family member you wouldn't have selected.

THE BOTTOM LINE. There is more to estate planning than deciding how to divvy up your assets when you die. It's also about making certain your family members and other beneficiaries are provided for and have access to your assets upon your temporary or permanent incapacity.

A Will is a great place to start, but it's only the beginning. If you have estate planning questions, 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.

We've been representing people injured in auto collisions for more than 20 years.

We've been representing people injured in auto collisions for more than 20 years. When you've been hurt in a crash, the at-fault driver's insurance company has a whole team of people working on paying you the smallest amount of money they can. That's why it's important to hire an experienced lawyer. We'll deal with the insurance company so you don't have to, we'll investigate your claim, gather your medical records, proof of lost wages, and other evidence of your injuries and the damages you've suffered. Then we present them to the insurance adjuster with our demand for settlement. If we can't agree on a fair and just settlement, we'll file a lawsuit on your behalf and take your case to trial in front of a judge and jury.

If you or a friend, family member, neighbor, or co-worker has been injured in an auto collision and needs legal advice, give us a call at 253.858.5434 to set up an appointment for a free consultation right away. We are available to meet in person (with appropriate social distancing protocols in place), by phone, or via video conference, whichever you prefer.

Estate planning encompasses numerous areas of law and serves a number of important purposes. We can help you develop a new estate plan or work with you to modify an existing estate plan.

Estate planning is multifaceted; it encompasses the laws of Wills & Trusts, real estate, business law, contracts, tax law, and many other areas of the law. It also serves a number of important purposes–it can help you avoid probate, minimize or eliminate estate taxes, provide instructions on how to manage your affairs during your incapacity, and settle matters and control your estate after your death.

We can help you develop a new estate plan or work with you on modifications to an estate plan that is already in place:

Basic estate planning documents include either a simple Will or a "pour over" Will with a Revocable Living Trust, Durable Power of Attorney for asset management, a Health Care Power of Attorney for healthcare decision-making in the event of your incapacity, and a Directive to Physicians (also called a "Living Will") to make sure that your wishes are respected regarding terminal illness, life support, and other end-of-life issues.

There are additional estate planning considerations for non-U.S. citizens and their spouses, including use of a Qualified Domestic Trust (QDOT) to defer the harsh tax treatment often given to non-citizens.

If you have children, you should also consider the benefits of a Trust to ensure that your children’s inheritance is properly managed and their assets protected.

If the total value of your assets is over the estate tax exemption amount (currently $11.58 million), you should explore the tax-saving benefits of a Marital Deduction Trust and Credit Shelter Trust, IRA Distribution Planning, as well as the possibility of incorporating an Irrevocable Life Insurance Trust, Charitable Trust, Family Limited Partnership and/or Family LLC into your estate plan.

Individuals with extensive property and/or business interests can benefit from Conservation Easements, Family Business Continuation Plans, “estate freezing” techniques, and our wealth management services.

If you have estate planning questions, 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.