Does a "no contest" clause in a Will protect the Will from being challenged by an unhappy heir or beneficiary?

Does a "no contest" clause protect a Will from a challenge? A no contest clause is a common provision that is meant to dissuade a beneficiary from contesting a Will. Most no contest clauses generally say that a beneficiary who challenges a Will will receive nothing, or have their share drastically reduced to a nominal amount, such as a dollar.

The key to an effective no contest clause is to offer some kind of incentive. In other words, a would-be challenger must receive enough under the Will to have something meaningful to lose. If the incentivizing bequest is too small, the clause will be of little help. For example, an heir who receives a small bequest in the context of very large estate will likely be more inclined to risk losing it for a chance to have a much larger share because they have nothing to lose anyway if they don't prevail. In an estate of many millions, involving heirs of considerable means, no contest bequests may need to be significant to effectively counter an unwanted challenge, especially where emotions may be running high.

Often beneficiaries will read a Will with a no contest clause and conclude that they must accept the terms, or risk losing their inheritance. On the flip side, testators generally assume that no contest clauses in their estate planning documents will always be enforced. However, a no contest clause does not always mean that no contest is possible.

Here in Washington, courts generally respect no contest clauses. For instance, in In re Estate of Rathbone (2018), the Washington Supreme Court upheld a no contest clause in a Will, where the testator had included a broadly worded no contest provision and also specifically named the beneficiary who was likely to challenge. Although the trial court and appellate court held that courts were allowed to interpret the provisions of the Will and thereby permitted the anticipated challenge to proceed, the Supreme Court reversed the lower court decisions, stating that courts should show restraint when the testator’s intent is so clearly stated.

It is important to note, however, that the Court said its holding in Rathbone was supported by the particular facts of the case, where a son was specifically named in the Will as a potential challenger. Therefore, the decision is probably better viewed as strongly encouraging judicial restraint from interpretation, not a blanket statement that all no contest clauses are per se enforceable in Washington. In fact, the case law reveals that such clauses are not enforced in all circumstances - there are always exceptions. For instance, Washington courts have held that a “no contest clause is inoperable if the challenger brings his or her contest in good faith and with probable cause.” In re Estate of Chappell (1923); In re Estate of Kubick (1973); and In re Estate of Mumby (1999). In practice, this means generally that a challenge will be respected and not result in disinheritance when the plaintiff has proceeded following the advice of a lawyer, provided they have fairly and fully disclosed all of the material facts and the contest.

In addition, a no contest clause may be drafted in such a way to afford some flexibility, allowing enforcement in certain circumstances – for instance, if there has been a breach of fiduciary duty. A challenge may be permitted also if it is brought forward on public policy grounds.

Regardless of the side you’re on, careful consideration should be given to the specific language of no contest provision, the nature and size of bequest that is at risk, and the character and inclinations of the persons involved.

Finally, it is important to note that the enforcement of no contest clauses is jurisdictional, with some jurisdictions, such as Idaho and Oregon, enforcing no contest clauses more strictly and others like Washington being less strict.

If you have questions about no contest clauses or Will in general, 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.

Motor home and RV collisions can happen for any number of reasons. If you've been hurt in an RV collision, we can help.

As the baby boomer population is retiring, we're seeing many more RVs or motor homes on the roadways. Although motor homes can be as long as a single-trailer semi truck and are much more difficult to maneuver than a personal vehicle, state laws do not require special driving permits to operate these massive vehicles. In short, anyone can get behind the wheel of an RV. Motor home collisions can happen for any number of reasons:

* Inexperienced drivers

* Driver fatigue

* Drunk/impaired driver

* Rollover

* Runaway trailers

* Unsafe speed for conditions

* Overloading/unbalanced load

* RV driver fails to see car in blind spot

* Not enough stopping room

* Poorly calculated turns

* Tire blowout

* Design or manufacturing defects

WHAT SHOULD I DO AFTER A COLLISION WITH AN RV? Seek medical care immediately after a collision. If you are injured or you have lost a loved one, it may be hard to think of documenting what happened, but this is vital to your case. Take photos of the scene and of your injuries, and write down an account of the events leading up to and following the crash. It’s also important not to speak to any insurance agents until you’ve spoken to your lawyer. The goal of insurance companies is to pay as little to victims as possible. As overwhelmed as you may be with your recovery, you may unintentionally waive your legal right to compensation.

Statutes of limitations vary by state. Here in Washington, it's three years from the date of the incident, but in Idaho it's only two, meaning that claims must be filed before that time runs out. Additionally, important information and evidence can be lost or jeopardized almost immediately after a collision. You need to contact a lawyer with the resources to begin researching your case and advocating for you immediately, while you focus on recovering from your injuries.

We have years of experience handling all types of motor vehicle collisions. We rely on our in-depth knowledge of the law as well as our understanding of the tactics insurance companies will utilize to downplay your claim. We will thoroughly research the collision and consult the necessary medical experts and accident analysts. Contact us today at 253.858.5434 for a free initial consultation.

We advise clients to review their estate plan every few years and after any major life changes. Your plan should be reviewed periodically to see whether anything necessitates revisions to your plan.

We generally advise clients to review their estate plan every few years and after any major life changes. This doesn't mean you should review only your Will. A comprehensive estate plan may include a Will, a Revocable Living Trust, a Durable Power of Attorney, a Healthcare Power of Attorney, and a Directive to Physicians. Some estates include additional documents such as life insurance, retirement plans, and business plans. All of these documents should be reviewed periodically to see whether your intentions have changed or if other factors necessitate revisions to your estate plan.

COMMON REASONS TO CHANGE YOUR ESTATE PLANNING DOCUMENTS. Whether to revise an estate plan requires some serious thought on your part. Some common reasons to change your estate planning documents include any of the following:

* Is there a new marriage? If so, you will want to ensure that your estate includes your new spouse and doesn't include your old one. You also need to help ensure that your children from a former marriage are properly provided for, either in your will or in a Living Trust.

* Have you changed your mind about the guardian you chose for your children? If so, you may want to revise your Will or your Power of Attorney for Minor Children's Healthcare. You also should consider adding a successor guardian in the event the guardian you chose is incapable of becoming the guardian of your children.

* Is there a new baby or an adopted child? Make sure your estate plan includes all children—including biological and adopted children.

* Do you want to disinherit a child? If you've decided to disinherit a child, make sure that is part of your estate plan.

* Do you want to add or change beneficiaries, including a charity? Without updating your estate plan, a new beneficiary won't be added if you haven't included that person or charity. Likewise, if you want to remove a beneficiary, you will want to revisit your estate plan and check with your lawyer.

* Have you divorced since your estate plan was made? Change your documents as soon as possible.

* Do you have a blended family? If you want to provide for stepchildren and you haven't already done so, you should revise your estate documents. Stepchildren are not included as heirs if you die without a Will or if your Will fails to name them.

* Has one or more of your beneficiaries predeceased you? If a beneficiary has died, it is important to revise your documents either to provide for new beneficiaries or to redistribute your property among beneficiaries.

* Do any of your beneficiaries have special needs that you want your estate plan to address? If any of your beneficiaries has special needs or has developed a serious illness you may want to provide for the care of that beneficiary.

* Have you moved to a new state? Each state's laws are different, so you may want to review your estate plan with a lawyer in your new location.

* Do you want a new Trustee for your Trust? If you're considering substituting Trustees or adding a successor Trustee to your Revocable Living Trust, it may be wise to review your entire estate plan.

* Have you received an inheritance or additional assets? The addition of new assets is a good reason for revisiting your estate plan. Some or all of the assets may be better off in a Trust, rather than a Will, to avoid probate. Discuss this with your lawyer or financial planner.

* Do you want a new person to have power of attorney? If you have a Durable Power of Attorney or a Healthcare Power of Attorney, or both, it is a good idea to ensure they reflect your current intentions. If not, you can revoke either or both of them and then appoint a new person to have power of attorney.

* Do you have a Directive to Physicians (commonly called a "Living Will")? Are the directives in the Living Will what you want, or have you changed your mind?

* Did you open a business or do you currently own one? You may want to discuss a business succession plan with your lawyer so the business can stay open. You also will be allowed to decide who you want to run your business.

* Are there new tax laws in place? Tax laws are always changing. Discuss this with your lawyer and the effect of new tax laws on your estate plan.

* The mere passage of time is sufficient to warrant a review your estate plan. Even if nothing has changed, it's a good idea to review your estate plan if it's been at least three to five years since you last reviewed it.

WHY IT'S IMPORTANT TO UPDATE YOUR ESTATE PLAN. There are numerous reasons to amend a will or a Living Trust along with your other estate documents. You may have changed your mind about something such as beneficiaries, division of assets, or who you want to have your power of attorney since you last looked at your estate plan. You may have inherited or purchased a significant number of assets since your estate plan was made, or you may have neglected to put some property into your Revocable Living Trust. All of these are valid reasons for reviewing your estate plan.

Discussing your estate plan with your lawyer is crucial when you have significant life changes. Without revisiting your estate plan, your property could end up with beneficiaries you no longer want or your children could end up with guardians you don't speak with anymore. You also may have grandchildren you want to add to your estate plan.

If you have had even one of the above changes happen in your life, it's time to revisit your estate plan so that your current intentions will be carried out. While people tend to put this off, it's important to have your estate plan reviewed right away. Hopefully, these documents won't be needed for a long time, but knowing they're in place can bring you great peace of mind. Give us a call at 253.858.5434 to find out how we can help.

Estate plans where parents give unequal gifts to their children can get tricky. Remember Shakespeare's King Lear? That didn't end well for anybody.

Estate plans where parents give unequal gifts to their children can get tricky. Remember Shakespeare's King Lear? That didn't end well for anybody.

When planning their estates, most parents start out wanting to treat their children equally. Intuitively, that would seem to be the fairest way to handle things. Sometimes, however, the fairest outcome is one in which your children receive different amounts of money or assets. "Equal" and "fair" are two different things.

WHEN UNEQUAL INHERITANCES MAY BE FAIR. There are often special circumstances to consider before you divide the family pie into equal parts. For example:

* You may want to leave more assets to your child who struggles to support their family on a modest teacher’s salary than to your child who makes six figures, married a cardiologist, and has chosen not to have children.

* You may want to give a larger inheritance to a child who has dedicated themselves to volunteer work, the arts, religion, or public service.

* You may want to compensate a child who has made sacrifices to care for you.

* You may want to provide for grandchildren, and one child may have more children than the others.

* Your youngest child may still need support for several more years, whereas your adult children are financially independent.

* You may have a special needs child who will need care for their entire lifetime.

* You may have a child who has participated in the family business while other children have not. Instead of making them all equal owners of the business, you may want to leave the business to the one who has contributed and shown an interest, and then provide for the others with other assets or life insurance.

DISTRIBUTION OF INHERITANCES MAY ALSO VARY. Not only do you need to decide how much your children should receive, but also when they will receive it—and that can also be different for each child. You can distribute inheritances in one lump sum or in installments. Or, you can keep an inheritance in a Trust. Consider factors such as the size of the potential inheritance, your children’s ages and family situations, how they have handled their own money in the past, and how much they need your financial gift.

WHAT YOU SHOULD KNOW. Some parents do not provide outright inheritances, preferring to keep the assets in a Trust for their children. The Trustee can make distributions for your children’s benefit based on guidelines you provide, but assets that stay in the Trust are protected from irresponsible spending, creditors (bankruptcy, lawsuits, etc.), predators (those with undue influence on your child), or vindictive ex spouses.

ACTIONS TO CONSIDER. If you can afford it, consider giving your children some of their inheritance while you're still alive. Not only will you have the opportunity to see them enjoying your gift, but it will provide insight as to how they will handle an inheritance. Consider whether your children should inherit everything you own. Perhaps you have additional goals such as providing for your grandchildren’s educations, giving gifts to other loved ones, making charitable contributions, or setting up a family foundation or donor advised fund.

KEY TAKEAWAYS. Treating children fairly does not always mean equal inheritances. How and when each child receives an inheritance may need to be customized to your children as individuals. Every family is different and unique. Not providing an outright inheritance is usually a good choice, as assets that stay in a Trust are protected from irresponsible spending, divorce, predators, and creditors.

It’s essential that you take action to ensure your children receive their inheritances as is best for them as individuals and for your family's particular situation. We can help ensure your estate plan and your children’s best interests match… and continue to make sense as life unfolds. 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.

Here's what we do when we represent a Personal Representative in a probate matter, and here's why you should hire a lawyer when settling an estate.

If you’ve had a death in the family, chances are you might be dealing with the probate process soon. Probate is the formal legal process that recognizes whether a Will is valid and appoints a Personal Representative ("PR") to administer the estate and distribute assets to intended beneficiaries.

Probate frequently occurs when real estate is involved, regardless of whether the deceased left a Will. Other assets, such as a life insurance, are paid directly to a beneficiary without going through probate. When the PR hires a lawyer to represent them in the probate, we make sure that all beneficiaries, creditors, and taxes are handled appropriately according to the state probate laws and timelines.

Some PRs choose not to hire a lawyer to administer their loved one's estate, depending on the decedent's estate plan and the PR's own experience—but they do need to be legally authorized to dispose of the property. For example, they shouldn't be listing a house that they have no authority to sell. That's called fraud.

Here's what we do when we represent a PR in a probate matter, and here's why you should hire a lawyer when selling estate property.

OUR JOB AND HOW WE HELP YOU. A probate lawyer is a valuable resource who works with the PR regarding tax deadlines, outstanding debts, and the distribution of assets. A recent survey from Caring.com found that only 4 in 10 American adults over age 18 had a Will or a Revocable Living Trust. Those numbers rise as people age, with 81% of those age 72 or older and 58% of those ages 53 to 71 saying they had estate planning documents.

It's true that people handle their own probates for a loved one without a lawyer all the time, but there’s a mixed bag of results, and if you screw it up, you’re liable. If you blow a deadline, you’re liable. If you fail to do a tax filing or pay creditors, you’re liable. There are time frames that people have to be aware of; there are tax deadlines, creditor notices, Veterans’ benefits, and Medicaid reimbursement deadlines. There are a lot of issues that may or may not apply to a given case, and so understanding the context in which probate occurs is critically important.

And we don’t just deal with residences. We also work with PRs on investment properties such as rental properties, vacation homes, and even commercial buildings. One of our clients, for example, has property that’s been operated for three generations as an auto repair shop, which requires proper inspections and safety procedures regarding oil, antifreeze, and other chemicals.

HOW WE GET PAID AND HOW MUCH PROBATE COSTS. In Washington and Idaho, lawyers are paid either hourly or via a flat fee. In places like California, lawyers are allowed to be paid a percentage of the estate’s value as defined by statute, which is part of why probate is so expensive in California and probate avoidance techniques are much more widely used there.

Here in Washington, hourly rates can range from $150 to over $300, depending on the lawyer’s experience and the size of the law firm. As for a flat fee, about $2,500 to $3,500 is typical for a routine probate case. There are also court fees and related costs, usually between $500 to $2,000, depending on the estate.

DO YOU NEED TO HIRE A LAWYER TO SELL ESTATE ASSETS? An estate is required to go through probate if there is no valid Will or when a valid Will needs this process to facilitate paying debts and transferring ownership. Although each state varies, a good rule of thumb is that if a decedent owned land OR had $100,000 more of assets, probate is required. You won’t need probate if the deceased had a transfer-on-death deed or a living trust, or if a house was held in joint tenancy with a right to survivorship. You also can avoid the probate process if you’re the surviving spouse of the deceased in a community property state. However, if you’re a child or other relative of the deceased in this situation, you’ll likely be headed to probate court.

HOW CAN YOU ASSIST YOUR PROBATE LAWYER? Although each situation is unique, the best approach is to realize that your lawyer is here to help by answering your questions and guiding you through what needs to be done. A lot of people don’t know where to start. We can provide recommendations for companies that will clear out a house entirely and have it professionally cleaned and staged before putting it on the market. We're also sensitive to families who don’t want to go through that and would prefer selling the house as-is to distribute the proceeds as swiftly as possible.

Probate can take six months to several years, depending on the value and nature of the estate.

As painful as losing a loved one can be, it’s vital for survivors to communicate with one another and the professionals who can assist them so that everyone’s wishes are heard and the deceased’s affairs are conducted properly. If you've been named as Personal Representative of an estate an need legal advice and representation, give us a call at 253.858.5434 to set up an appointment today.

We are currently working with two other law firms in prosecuting wrongful death cases. They're handling the litigation, we're working on the probate portions of the cases.

We are currently collaborating with two other law firms in prosecuting wrongful death cases. While the other firms are handling the wrongful death litigation, we are working with them on the probate portions of the cases. In a wrongful death case, a Personal Representative must be appointed to administer the estate, which includes the filing of the Complaint for the personal injury on behalf of the decedent’s estate. While this process seems simple, it can be more complicated than what first meets the

eye. A number of issues must be considered:

1. WHO IS PERSONAL REPRESENTATIVE? If the decedent left a Will, the person named as Personal Representative in the Will is the one who administers the estate and files the Complaint in the wrongful death lawsuit. If the decedent died without a Will, the question of who has a right to be appointed as PR is determined by statute. In Washington and Idaho, the surviving spouse or domestic partner has the first right. Children of the decedent are next. However, any qualified person may be appointed, assuming they obtain the appropriate waivers and consents from any other heir who has an equal or prior right to be appointed.

2. WHO SHARES IN THE SURVIVAL CLAIM? If the decedent left a Will, the survival claim becomes an asset of the estate and is distributed in accordance with the terms of the Will. If the decedent did not leave a Will, then the estate is distributed in accordance with the intestacy statute for the state in which decedent was domiciled at the time of death. Intestacy statutes vary considerably from state to state.

3. TAXES. Estate taxes are also a consideration in a wrongful death case. Funds allocated to the wrongful death claim are not subject to estate taxes; funds allocated to the survival claim are.

* Federal Estate Tax. There is a federal estate tax exemption in 2021 of $11.7 million. The tax rate on the excess is 40%.

* State Estate Tax. Idaho does not have an estate tax. Washington does have an estate tax on all amounts over $2.193 million. The tax rate is graduated beginning at 10% and increases to 20% on amounts in excess of $9 million.

4. THE PROCESS. While the administration of an estate can be complex, the steps are relatively simple. In Washington, the process is as follows:

* Admit Will or apply for Letters of Administration, request appointment of a PR, and request grant of nonintervention powers

* Give notice to heirs and beneficiaries and the State Dept. of Revenue

* Give notice to creditors and the State Dept. of Social and Health Services

* Inventory estate assets

* Obtain Date of Death valuations

* File final income tax return

* File estate federal and state estate returns, if required

* Distribute assets/retitle as necessary and fund applicable trusts

* File the Declaration of Completion and provide notice to heirs and beneficiaries

While the process seems simple, it is complicated by the fact that financial institutions are slow to give date of death values, taxing authorities are very slow to audit tax returns, creditors of the estate have time to file claims, and some assets can be difficult to sell or liquidate.

Personal injury attorneys sometimes ask our law firm to step in and take over the administration of an estate that has already been started and has gone awry. It is much better for the personal injury firm to suggest that the appropriate family members hire an experienced estate planning and probate law firm that also practices personal injury law to assist in the probate from the outset. Considerable time and money can be saved by doing things right from the beginning.

If you have questions about how our firm can assist in the administration of an estate that includes a wrongful death claim, give us a call at 253.858.5434 and we'll be happy to assist you.

If you were injured in an auto collision, you might be wondering exactly how a lawyer can help you. Here's how we can help.

If you were injured in an auto collision, you might be wondering exactly how a lawyer can help you--or whether it's a good idea to try to deal with the insurance company and settle the claim on your own. While much depends on the specifics and the complexity of your case, in general we can:

* communicate with the other driver’s insurance company

* obtain the necessary evidence with respect to liability

* organize your medical records and bills

* communicate with your health care providers to obtain missing records

* work with your doctors to make sure they provide the medical information you need so that you can prove damages in your claim

* organize and present the evidence in order to prove liability and damages

* negotiate with lien holders on your claim (such as health, disability, or workers’ compensation insurers) to potentially reduce the amount of those liens, and

* negotiate a satisfactory settlement with the insurance adjuster or defense attorney.

COMMUNICATING WITH THE OTHER DRIVE'S INSURANCE COMPANY. In any personal injury case, we will open up a line of communication with the insurance adjuster for the other party. The adjuster has the pocketbook, and so it is critical for us to have good communications and a good relationship with the adjuster.

OBTAINING NECESSARY EVIDENCE OF LIABILITY. We can help obtain all of the evidence you will need to prove liability in an injury claim. Although you may have already taken pictures of the scene, we will probably go back to the scene ourselves to see what it looks like. While a picture may be worth a thousand words, actually seeing the scene with our own eyes can be worth a thousand pictures.

We will make sure to get all of the police reports in the case and will often speak with the investigating officers and witnesses. We will leave no stone unturned when it comes to obtaining evidence of liability.

OBTAINING NECESSARY EVIDENCE OF DAMAGES. This is where a good lawyer can be essential to your case, especially when you've suffered significant injuries in connection with a collision. It is critical to obtain all documentation related to your injuries, but it isn't always easy to get your hands on those records and bills from health care providers. Although the records are technically yours, and you have an absolute right to them, sending medical records to patients and lawyers is just not a health care provider’s first priority.

Small doctors’ offices may not have the staff or the time to respond to record requests on a timely basis. Large hospitals may have specific procedures that must be followed in order to respond to record requests. If you don’t follow their procedures (which they often don’t publicize very well), they simply won’t respond to your request. Then, when the health care provider does respond to the request, the records may be incomplete. We often have to request the same records more than once and then we have to follow up endlessly with the provider’s office.

Finally, it may turn out that the doctor did not use the “magic words” as to causation, prognosis, and disability in their notes. In order to successfully prosecute any type of personal injury claim, you must be able to prove, through medical evidence, exactly what your injury, disability, or physical limitation is, and that it was caused by the defendant’s negligence.

Doctors often don’t mention causation and extent of the injury or disability in their medical records. If this happens in your case, we will write the doctor and ask for a narrative report in which the doctor gives their opinion that the collision caused your injury or disability and that, as a result of the collision, you will be hindered or disabled for a specific period of time.

NEGOTIATING WITH LIEN HOLDERS. If you received benefits from a health, disability, or workers’ comp insurer, that insurer will have a lien on your claim. A lien means that the lien holder gets paid before you do, out of any settlement or judgment you receive. We will work with the lien holder to try to get them to reduce their lien. This is important work. Every dollar less that the lien holder takes is one more dollar that goes into your pocket.

NEGOTIATING THE SETTLEMENT. Finally, we will negotiate your settlement. This is hard work. Negotiation is a very specific skill. A personal injury lawyer is always going to be better at settling an injury case than a layperson would be. We know how to value a claim and how to work the case and conduct the negotiations so as to get top dollar from the insurer.

WHEN CAN I HANDLE A COLLISION CASE MYSELF? Most people don’t need lawyers for very small cases. If they are comfortable gathering the evidence and documents themselves and negotiating the settlement, then it is probably in their best interests to do that. Then, they save the 1/3 contingent fee that most personal injury lawyers take. The question is, what is a small case? And where is the line between a small case that you can handle yourself and a larger case for which you absolutely should hire a lawyer? As a general rule, if your medical bills total more than a few thousand dollars, or if you were out of work for more than a few days, you should probably hire a lawyer.

If you or a friend, family member, neighbor, or co-worker has been injured in a collision that was caused by someone else, give us a call at 253.858.5434 to set up an appointment for a free initial consultant today.

We know estate planning can be sensitive. We'll work with you to provide creative and thorough estate planning solutions.

We know that estate planning can be sensitive. We'll work with you to provide creative and thorough estate planning solutions. Having provided estate planning services to Pacific Northwest clients for nearly 25 years, we know the importance of equipping our clients to strategically establish an estate plan that may impact their families and communities for generations. Through fostering open, responsive communication and tailoring a customized plan, we can help you identify who will make crucial financial and healthcare decisions during both incapacity and after death, while also safeguarding your assets and minimizing taxes. Our goal is to build trusted relationships that last for generations. We can provide you and your family the following legal services

* Analysis of your personal and financial situation to determine the best approaches for achieving estate planning objectives

* Drafting Wills, Trusts, Powers of Attorney, Community Property Agreements, and other estate planning documents

* Selection of fiduciaries, including trustees, personal representatives, attorneys-in-fact, and guardians

* Complex tax planning and gifting strategies

* Business succession planning

* Planning to achieve charitable objectives—whether that involves outright gifts to charities or establishing a charitable trust or foundation

* Prenuptial and post-nuptial agreements

* Use of limited liability companies, limited partnerships, or other entities to manage risk

By laying a foundation of trust and providing high quality service, we strive for their clients to flourish, both economically and relationally. If you, your family, friends, neighbors, or co-workers need representative and legal advice about their estate plans, 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.

Why should you spend the money on a lawyer rather than start your new business through an online site? The answers are simple. Here are two main reasons.

Why should someone spend the money on a lawyer rather than form their own company through an online site? The answer is pretty simple. There are two main reasons to use a lawyer: a lawyer will help ensure that you pick the right entity for your situation and a lawyer should* create (with your input) and explain all the documents necessary to get your company up and running.

When someone who isn’t knowledgeable about the law goes to an online website, they may choose to set up an LLC thinking that is the best entity structure for their company and disregard forming a corporation. However, if that same person had gone to an experienced lawyer, they may have been led through a series of questions, like those we ask our clients, to determine whether an LLC is correct. A lawyer may discover that for one reason or another, a corporation is best. Or a lawyer may discover that an LLC is correct and be able to guide clients through the choice of whether to make it member-managed or manager-managed.

In addition to helping a client choose the best business entity, a lawyer will help a client prepare the documents necessary to run the business including paperwork through the state, federal, and possibly city level. For instance, when our clients walk out the door after we set up their business, we try to ensure that all their documents are done (unless it is something that they personally have to do and we cannot as their lawyers) and that they understand exactly what is in them. The last thing we want is someone to leave unsure of what their bylaws or operating agreement says. If you get a document from an online site, you don’t know if the provisions in it are what you need (for instance, the last thing you want is an "Uh-oh, I don’t have any provisions for when my partner gets divorced and now the business is facing failure because of it"). In addition, you may not understand all the provisions in it (for example, "Uh-oh, I didn’t realize that the way that clause was worded, a personal bankruptcy means a lot of problems"). When you hire a lawyer (and again, you need to find out what services your lawyer is providing – are they just writing the documents and throwing you out the door or are they going to go over the documents with you?), your lawyer will probably ask you lots of questions to see what you need in your documents and then explain them to you.

Filing online is quick and it is easy. However, if you don’t know what you are doing, it could end up costing you big time down the road. Hiring a lawyer gives you the peace of mind knowing that someone who knows the ins and outs of forming a business is taking care of you and ensuring that you know what you are doing and why.

*I say "should" because you have to check with your lawyer to find out exactly what they are doing for you. Some lawyers may only prepare the major company documents (Articles with the Secretary of State and your operating agreement or bylaws) while others may do much more to ensure that you are set up with the Secretary of State, any other state agencies, the IRS, and any other entities you need to file with. Always ask what are you doing for me and what do I need to do once I leave to make sure you don’t think you are totally set up and find out you aren’t.

If you're thinking about starting a new business this year, 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, by phone, or via video conference.

Estate planning questions are numerous, and sometimes the answers aren't easy. Here are five key questions to start with.

It's hard for parents to think about a day when they won’t be there for their children. But what would happen to your kids if you were to pass away? Who would be their primary caretaker? Would they have enough money for necessities, let alone college?

The questions are numerous, and the answers aren’t easy. The topic is so unpleasant that many Americans avoid it all together, so much so that a recent survey shows that just 36% of parents with kids under 18 have a Will. When you create a Will, you put yourself in the driver’s seat and avoid leaving decisions about your family up to the court. Start with these five key questions:

1. WHO WILL TAKE CARE OF MY KIDS? This is probably one of the most important questions you will ask yourself when estate planning, and for that reason, it’s often the hardest to answer. Choosing a guardian now can give you peace of mind, knowing that if something were to happen to one or both parents, your children would be raised by a close friend or family member of your choosing. Help narrow down your choice of guardian by considering the following questions:

* Is the person physically able to care for your kids?

* Does the person live close? If not, would they consider relocation?

* Are this person’s finances and relationships stable?

* Will the person give your children the life you want for them?

2. DO YOU HAVE LIFE INSURANCE? Although there are many reasons to get life insurance, one of the greatest benefits is that it can help ensure your kids have the financial security necessary to live out their dreams. If you were no longer here to support your family, life insurance can provide funding to pay outstanding debt, maintain your children’s standard of living, and even pay for college.

3. DO YOU HAVE A TRUST? The basic function of every estate plan is to determine who should receive what and when. Creating a legal document that spells out what you want to happen to your assets helps avoid unnecessary stress and confusion. If you have young children, a Trust can help you specify how and when to pass money and other assets to them.

If you think that your child’s guardian would automatically be able to use inheritance money to care for your children then you’d likely be wrong. By default, the court — not the guardian — will control the inheritance until the child reaches legal age. If you’d like to avoid any confusion as to what your kids inherit and when, a Trust may be a good choice for you. Within a Trust, you can decide who will manage the money and decide when the children will receive trust assets and for what purposes.

4. WHO WILL MANAGE ALL OF MY ASSETS? An average American family may have accumulated assets such as cars, a house, retirement accounts, life insurance, education funds, and other investment account. Making sure your assets are managed and distributed according to your wishes after you pass could prove to be difficult and time consuming. Selecting a competent and trusted Personal Representative, a person charged with carrying out your last wishes, is key. Often people choose a spouse, an older child, or a trusted friend to serve as PR and administer their estate.

5. WHO WILL MAKE MEDICAL AND FINANCIAL DECISIONS IF I’M SERIOUSLY INJURED? Many people think about estate planning in the context of someone dying — but it’s equally important if you’re sick or injured and can’t make decisions for yourself. Having a health care directive and a durable power of attorney for finances will ensure someone can manage your care and finances if you’re not able. Although laws vary from state to state, if you’re married, your spouse would likely be legally able to make important medical decisions on your behalf. To make sure things go smoothly, you should have your lawyer draft a health care directive and financial power of attorney and name your surviving spouse or trusted friend or family member as the attorney-in-fact and health care agent.

You can probably think of a million things you’d rather do than tackle the difficult questions that surround estate planning, but think about the alternative: the court making the decisions for you. Once your plan is in place, it’s a good idea to review and update on a regular basis, especially when major life events or financial changes occur. We can help. 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.

Our office is open at 25% maximum capacity as Pierce County moves into Phase 2 of Gov. Inslee's Healthy Washington recovery plan.

As you probably know, King, Pierce, Snohomish, Thurston, Lewis, Pacific, and Grays Harbor Counties have all moved into Phase 2 of Governor Inslee's Healthy Washington recovery plan effective today. The rest of the state remains in Phase 1. As a professional service provider, our offices are open at 25% capacity. We're still also available to meet by phone or via video conference for our clients' convenience, whichever you prefer. Give us a call at 253.858.5434 to set up an appointment today.

The chief goal of estate planning is to ensure your spouse, kids, and other family members are cared for and financially stable in the event of your passing.

Everyone has an estate. Your house, the land it sits on, and all your other assets make up your estate. The chief goal of creating an estate plan is to ensure your spouse, children, and other family members are cared for and financially stable in the event of your passing.

Basic estate planning techniques include:

* Creating a Will

* Assigning power of attorney

* Determining who will hold your health care power of attorney

* Drafting a Directive to Physicians

An estate plan ensures your financial assets, real estate, and other assets are distributed in the way you prefer after your death. Knowing the basic techniques involved in creating a comprehensive estate plan is only the first step on a complex journey. Understanding these techniques and the roles they play in your estate plan, providing for your family, and protecting your assets is another important step.

MAKING A WILL. A Will is a legal document that details your final wishes in regard to who inherits what from your estate after your death. A Will also specifies the person you designate as the administrator of your estate. This is an important designation because your estate’s administrator is responsible for allocating your property and assets according to your final wishes.

ASSIGNING DURABLE POWER OF ATTORNEY. A durable power of attorney is a legally binding document that gives someone the power to act on your behalf and make decisions for you. A durable power of attorney is lasting and does not end when you become incapable of caring for yourself or making decisions on your own.

DETERMINING WHO WILL BE YOUR HEALTH CARE POWER OF ATTORNEY. A health care power of attorney is a legal document that allows you to choose someone you trust to act as your agent regarding your health care when you can no longer make decisions for yourself.

DRAFTING A DIRECTIVE TO PHYSICIANS. A Directive to Physicians is a written document that allows you to make your end-of-life wishes known before you become incapacitated. It plainly states your wishes regarding life support and other forms of resuscitation when your death draws closer. A Directive to Physicians is sometimes referred to as a “living will.”

UNDERSTAND THE PURPOSE OF AN ESTATE PLAN. Peace of mind is not the main goal of an estate plan, but it is an important factor. An estate plan makes provisions not only for the assets you have acquired but also for the people you care about. The purpose of estate planning as taking preventive measures to care for your own needs and ensure your wishes are followed if you become incapable of taking care of yourself. An estate plan also lets you make sure your family is cared for after your passing.

An estate plan lets you plan for illness, retirement, and for the distribution of real estate, personal property, savings, and other financial assets. We can help put your final wishes into your estate plan.

KNOW WHO BENEFITS FROM ESTATE PLANNING. As the owner of an estate, you benefit greatly from creating a Will and establishing an estate plan. Estate planning gives you the opportunity to think about who receives what from your estate and decide who will care for specific family members after your death.

When you create an estate plan, your family members who depend on you can be assured of their future care. It can also benefit an incapacitated spouse if you predecease them, minor children, and disabled adult children who lack decision-making abilities. Additionally, an estate plan can limit or eliminate familial conflict, allowing everyone involved to respect your final wishes.

WE CAN HELP YOU PUT YOUR AFFAIRS IN ORDER. When you are ready to establish an estate plan for the disposition of your property and assets, your plans should start with an understanding of basic estate planning techniques. We can help you make important decisions based on the size and nature of your estate, as well as the number of friends and family members you wish to name in your estate plan.

Do not delay making your wishes known and sorting out the disposition of your estate. 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.

This is worth re-posting: The truth about the "McDonald's Hot Coffee" case.

This is worth re-posting. In case you're one of the people who think personal injury lawsuits are "frivolous," remember that McDonald's used to serve their coffee at 190 degrees, which is hot enough to leave 3rd degree burns in just three seconds of contact with human skin. McDonald's knew this and decided to serve their coffee at 190 degrees because it had a longer shelf life than serving it at the standard 160 degrees. They calculated that burn-related lawsuits would cost less than just wasting coffee that wasn't good anymore. THEY RISKED PEOPLE GETTING DEADLY BURNS TO SAVE MONEY.

And when the big lawsuit inevitably happened, they slandered the elderly victim, who had 3rd degree burns over 16% of her body, including her legs, abdomen, and genitals, and nearly died from shock; they painted her as stupid and made her into a joke for not realizing that coffee would be hot. The insurance industry has since done a brilliant job of using the "McDonald's hot coffee" story to perpetuate the idea of frivolous lawsuits brought by people trying to scam the system.

Stella Liebeck, the plaintiff in that case, literally just wanted McDonald's to pay her $20,000 medical bills because Medicaid wouldn't cover them. Then McDonald's, the insurance industry, and the media made her out to be a greedy scammer. This is why we think personal injury cases are important. People who have been injured because of someone else's actions (or inaction) deserve justice.

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.