If you're a small business owner, your estate plan should include a business succession plan as well.

When you leave your pet for the weekend, you have a plan. You know who'll feed it and how much it will cost. So, what happens when you step away from your business for the weekend? More importantly, what will happen when you leave your business for much longer—as in, permanently? If a business owner dies and there's no plan in place, it's the survivors who are left without direction. While your business might be humming along right now, how will it be if you're not around? Managing someone's affairs after death is a whole new, and potentially messy, ballgame. If you want to take care of business even after you're gone, you need to plan what will happen to your estate, and that includes your business. Communication with your family and business partners is the first step, documenting what you decide is the second.

MINIMIZING TAXES. If nothing else, one good reason for estate planning is to minimize the amount your estate will owe in taxes. You've worked hard to establish your business as a profitable entity. Don't lose the fruits of your labor to the IRS in estate taxes. This type of tax usually ranges from 35% to 50% of the business value and is due within nine months of your passing. Since most business assets are not liquid, paying estate taxes often requires selling the business. Due to the nine-month limitation, small businesses are often sold well below their value. Thankfully, estate planning can keep your business from becoming a fire sale.

Two IRS tax breaks, Sections 303 and 6166, alleviate the tax burden for small business owners. Section 303 allows your estate to redeem your stock with very little tax cost. This is a one-time opportunity, and the stock value must be more than 35% of your estate. Heirs frequently take advantage of Section 303 to cover estate taxes.

Section 6166 offers estate tax deferral for small business owners. To take advantage of Section 6166, more than 35% of your adjusted gross estate must be from your business interests. If eligible, your Personal Representative can pay the estate tax in ten annual installments. This alleviates the burden of having to generate one lump sum within nine months of your passing. Under Section 6166, the first installment isn't due for five years. This gives your business time to earn the money to cover the taxes.

BUY-SELL AGREEMENTS. A buy-sell agreement is a contract between shareholders or partners that establishes a plan for the business in case one of the owners dies or becomes incapacitated. The principal benefit of a buy-sell agreement is that it establishes a sale price for the business and your share of the business. A buy-sell lets you document whether or not you want your partners to buy out your share if you want to block certain individuals from having a role in the business, or if you want your heirs to sell your portion. Since the business price has been established, family members know they are receiving a fair price.

As any good business plan anticipates the future, a buy-sell agreement is simply another aspect of good business. While creating a buy-sell agreement requires open communication with both your family and your business partners, which can be difficult to achieve, it will establish a solid path for the future, greatly reducing any potential for disaster.

LIFE INSURANCE. If the business assets are not liquid, where do partners get the capital to buy out a deceased partner's shares? Very often, the necessary capital comes from life insurance. This is a common business practice, each partner takes out a life insurance policy that names the other owners as beneficiaries. This strategy gives surviving owners tax-free proceeds to purchase the deceased's portion of the business from their estate.

SOLE PROPRIETORS. If you're a sole proprietor, you're well aware that your business is not separate from your personal assets—in a sense, your business is you. Probably more than any other type of business organization, you need a clear plan of action for what should take place after you're gone. What you own personally can be used to cover business debts. Delegate and prepare your successor if you want to pass on the business. If you want to sell the business, do the research that will make selling it easy and inexpensive for your heirs.

As with any small business owner, the key to successful estate planning is communication and documentation. You want to communicate with your family about a wise path for the future. But you also want to document those wishes in an estate plan to prevent future disagreements.

FAMILY-RUN BUSINESSES. In a family-run enterprise, you may have some heirs who are involved in the business and others who are not - how do you divide your business assets? Many people choose to distribute assets based on a relative's contribution level. Let's say two of your children are going to take over the family business. Do you want your third, uninvolved child to have an equal share? Perhaps you want the two involved siblings to buy out the third. Regardless of what you decide, controlling these types of choices is critical. After all, the passing of a family member is hard enough to deal with on its own. Proper estate planning at least allows your business to have a smooth transition.

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

When you're pursuing a personal injury claim, you're likely to encounter several unfamiliar terms. One of these is "subrogation."

When you’re pursuing a personal injury claim following an auto collision, you’re likely to encounter several unfamiliar terms. One of these is "subrogation." When dealing with a car crash, this legal process allows an insurance company (like a health insurance company or an injury victim's own auto insurance company that's paid out PIP ("Personal Injury Protection") payments for medical bills or lost wages) to make a claim against a third party, so that it can recover benefits it paid to or for the benefit of the insured party. The intent is to obligate the person who was responsible for the collision to reimburse the insurance company that paid out benefits to the party who had a valid personal injury claim after the wreck.

DEFINING SUBROGATION. Subrogation is defined as the substitution of one party by another in reference to an insurance claim or debt. Essentially, it means one party stands in the place of another while accompanied by the transfer of any associated rights and duties. In a personal injury case, subrogation can apply to both car insurance and health insurance benefits.

If you’ve been involved in an auto collision, subrogation issues can arise if you use your own insurance to pay for the care you need while fault for the collision is still being determined. Although your insurer will approve the initial claim, the company will want to be reimbursed for the expense when you collect damages from the insurance company of the at-fault driver.

Your own insurance company is often referred to as the "collateral source" or "1st party insurer" when discussing subrogation rights.

HOW IT WORKS. Whenever your doctor lists the medical care you’ve received resulting from a collision, your insurance company will send you a form asking for additional information. This form is used to determine if it’s possible someone else may be financially responsible for your care.

After processing the form, your insurer is legally required to notify you if it intends to pursue a subrogation interest. Most insurance policies require you to fully cooperate with any subrogation attempts. Keep in mind that these efforts will include recovering the cost of any applicable deductible you paid. If subrogation is successful, you’ll receive either a full or partial refund.

DOUBLE RECOVERY. Subrogation is based on the concept that injured people should not be allowed to profit from their injuries. They are allowed to recover their actual damages, but a double recovery is prohibited. For example, if you use your own PIP insurance or health insurance to pay for $15,000 in collision-related medical care, you’re not allowed to collect another $15,000 from the at-fault driver’s insurance company to compensate you for your medical care and then spend that money on whatever you wish. The payment goes to your own insurance provider to reimburse them for the claim that has already been paid.

Preventing double recovery carries the collective benefit of lowering insurance rates for everyone by allowing insurers to be reimbursed for payments that were the legal responsibility of another party.

SUBROGATION AND MEDICAL CARE PAID BY THE STATE. If your health insurance is provided through a government-sponsored program such as Medicare or Medicaid, or you were injured on the job and your medical care is paid for by the Dept. of Labor & Industries, the concept of subrogation still applies. Government programs will pursue their subrogation rights and prevent you from a double recovery of collision-related expenses.

UNDERSTANDING HOW SUBROGATION AFFECTS YOUR PERSONAL INJURY CLAIM. Keeping careful track of your collision-related expenses and the source of any payments made on your behalf can offer some insight into possible subrogation interests in your case. However, understanding subrogation interests can be complicated. To avoid costly mistakes, it’s best to seek assistance from a lawyer with experience in personal injury law and the complications that subrogation issues can present when negotiating a fair settlement for your injuries.

If you’re offered a settlement from the at-fault driver’s insurance company, some insurers may try to add a waiver of subrogation clause that prohibits your own insurance company from seeking reimbursement for previously paid claims. This might result in your own insurance company refusing to pay your claim, creating an unfair burden for you. To protect yourself, it’s best to have your attorney review any document before you sign it.

If you’ve been hurt in an auto collision, you need to speak with an experienced lawyer as soon as possible. Please call our office at 253.858.5434 to schedule your free consultation.

We generally recommend reviewing your estate plan every three to five years, or whenever there is a major life event or change.

Many people review their estate plans at a regular frequency, often when they review their whole financial plan. This can be done annually, semi-annually, or quarterly; for estate planning specifically, we generally recommend reviewing your estate plan at least every three to five years or when there is a major life event.

In addition to regular reviews, it’s a good idea to review and update your plan at life events like the following:

* The birth or adoption of a new child or grandchild

* When a child or grandchild becomes an adult

* When a child or grandchild needs educational funding

* Death or change in circumstances of the guardian named in your Will for minor children

* Changes in your number of dependents, such as the addition of caring for a parent, disable child, or other adult

* Change in your or your spouse's financial or other goals

* Marriage or divorce

* Death, illness, or disability of your spouse

* Change in your life or long-term care insurance coverage

* Purchasing a home or other large asset

* Borrowing a large amount of money or taking on liability for any other reason

* Large increases or decreases in the value of assets, such as investments

* If you or your spouse receives a large inheritance or gift

* Changes in federal or state laws covering taxes and investments

* If any family member passes away, becomes ill, or becomes disabled

* Death or change in circumstance of your Personal Representative or Trustee

* Career changes, such as a new job, promotion, or if you start, purchase, or close a business

Reviewing your plan at regular intervals in addition to major life events will help ensure that your legacy, both financial and otherwise, is passed on in accordance with your wishes and that your beneficiaries receive their inheritances as smoothly as possible. 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, by phone, or via video conference.

International estate planning is complex. When you own assets overseas or want to leave your estate to non-citizen relatives, there are important matters to consider.

Estate planning is a complicated task on its own, and accounting for international matters doesn’t make anything easier. When you own assets or property overseas or wish to leave your estate to non-citizen relatives or those living outside the U.S., there are important matters you should take time to consider.

Some of these matters include considerations such as:

* How do I prepare an international Will?

* Do treaty countries impact my estate planning efforts?

* Can the federal estate tax be deferred for my non-citizen spouse?

* How can I protect my estate from unnecessary taxation before immigrating to the U.S.?

It’s OK to not know the answers to these questions or even how to begin planning your estate on an international level. You should, however, seek these answers by reaching out to an estate planning attorney who has the experience necessary to assist you. We can help you with international estate planning services, such as:

* International Estate Planning with Treaties

* Blocking Estate Tax Exposure (BETE) Trusts

* International Wills (Situs Will vs. Domicile Hague Wills)

* Qualified Domestic Trust (QDOT)

* Pre-Immigration Estate Planning

If you would like to meet with us, we’ll take time to understand what your current estate planning measures are (if any), what you want to achieve, and offer you options for ways that we can help you meet your goals. Give us a call at 253.858.5434 to set up an appointment today.

A proper estate plan, using a variety of legal tools and techniques, can help you avoid the probate process altogether.

Going through the probate process can be a time-consuming and expensive undertaking, one that keeps heirs and beneficiaries from their inheritances for a longer time than anyone wants. However, there are plenty of legal ways to avoid the process altogether.

The key to avoiding probate is fairly simple: use a comprehensive estate plan. The law has made it easy for most people to avoid the probate process, with many legal tools and techniques that are available to make asset transfer simple and pain-free.

No two estates are exactly alike, so choosing the right tools for your estate plan should be made by you and your lawyer. However, there are a few key legal devices available to help that you should be aware of:

A REVOCABLE LIVING TRUST. A Revocable Living Trust is the cornerstone for many estate plans. By storing your assets in a Revocable Living Trust, you maintain control over your property while you’re still alive, and after you die, your assets can pass directly to your beneficiaries without going through the hassle of probate. An irrevocable trust offers less flexibility to you, but it may grant tax benefits to your estate.

A COMMUNITY PROPERTY SURVIVORSHIP AGREEMENT. If you’re married and want your spouse to receive all of your property should you die first, a CPSA may be the right option. This document converts all of your property into community property, allowing your spouse to receive your assets directly without going through probate. Note that there are certain advantages and disadvantages to a CPSA that are worth your careful consideration, so talk it over with your spouse first, as well as with your estate planning attorney.

A TRANSFER ON DEATH DEED. A TODD is a great tool to make the transfer of real estate less complicated, and it’s relatively new to the state of Washington. This type of deed allows you to name a beneficiary who will receive the deeded property when you die. There is no need for the probate process with a TODD, as the property transfers directly. However, the TODD does have some strict requirements that have to be met for it to be legally binding.

A WILL. A Will is also a powerful part of your estate planning arsenal. Even if you rely on Revocable Living Trusts and other legal devices, your Will can serve as a sort of catch-all safety net, in case some assets and property aren’t named in your other estate planning documents.

There are also certain assets that don’t need to go through probate at all such as designated beneficiary accounts like life insurance policies and some retirement plans. These assets already have a named beneficiary, and so they transfer automatically upon the death of the owner.

Avoiding probate is often in the best interests of heirs and beneficiaries. Good planning now means that when you die, your family will be able to receive the maximum portion of your assets available under the law, without waiting months or even years for probate to complete. However, every situation is unique, so you should consult with an experienced lawyer to be sure you’re making the best choice for your family’s future.

If you have any questions about your estate, would like to review your current estate plan, or are ready to create a new one to protect your family’s future, we are available to help. We have been serving Washington clients since 1996 and Idaho clients since 2007, and we are here to guide you through the estate planning process from start to finish. To arrange a meeting, please call us at 253.858.5434. We are available to meet in person, by phone, or via video conference.

There are several way social media can undercut your personal injury claim. Please exercise caution!

There are several ways social media can undercut your personal injury claim. It seems like second nature to share your life with family and friends, but social media users who have a pending personal injury claim or lawsuit MUST exercise great caution. Sharing profile information, pictures, posts, videos, and comments on social media can undercut your claim by giving opposing counsel fodder that they can use against you.

Social media accounts provide defense attorneys with a valuable source of evidence to impeach your credibility, refute the cause of your injury, and undermine the amount of damages you claim to have suffered. You can avoid being in a compromised position by showing your lawyer your current social media profiles and seeking specific guidance. In the meantime, here are some do’s and don’ts.

PRIVATE vs. PUBLIC PROFILE. If you have public profiles, you can adjust these to “private” or “protected” in the “settings” area of your account. It is generally unwise to delete profiles in their entirety, as this can arouse suspicion of trying to hide something. In some cases, a court could also deem it “spoliation of evidence.”

Avoid accepting any new friend requests, and be wary of any new followers. These could be from the enemy camp, trying to get a closer look and monitor you.

You may wish to refrain from any social media use while your case is pending. Keep in mind, however, that searchers can find retweets, comments, hashtags, mentions, tags, etc. For this reason, you may also wish to ask your friends and family members to leave you alone on social media.

Keeping your information private is a good first step. It nevertheless does not mean that you can continue to post anything that you want to.

YOUR SOCIAL MEDIA POSTS MAY BE SUBJECT TO DISCOVERY REQUESTS OR COURT ORDERS. Even if your social media accounts enjoy private settings, an opposing lawyer can ask you to produce printouts of your social media activity in the discovery process. “Discovery” is the phase of a lawsuit where parties exchange information to build their respective cases.

Defendants have the right to seek as much information as they can about you. This includes information that is not public record.

A COURT CAN ORDER YOU TO SHOW SOCIAL MEDIA. Parties typically conduct discovery without court intervention. However, either party can petition the court if the other side does not want to produce information that the requesting party believes could lead to admissible evidence. For good cause shown, a court can order you to produce information from your social media accounts.

A court could also order you to reactivate a temporarily deactivated account. In some cases of deleted accounts, a subpoena can provide information from a provider’s servers or from a third party’s servers that store social media data. Each provider has a different policy concerning the length of time it retains data from deleted accounts.

EXAMPLES OF HOW SOCIAL MEDIA CAN HURT YOUR CASE. Even social media activity that you believe has no relationship to your case can harm you. The connections that a clever lawyer can make between your posts and your case are limitless. Nevertheless, here are a few specific ways that social media can not only undercut your personal injury claim but also sabotage it:

* Behavioral tendencies such as consuming alcohol, photos captured while driving, or a high-risk activity that could frame a view that the victim played a role in causing the collision.

* A personal injury victim claiming loss of enjoyment of life or pain and suffering regularly poses happily for pictures in various places.

* An personal injury victim claiming incapacitating injuries posts videos of dancing, hiking, bowling, playing softball, or some other physical activity.

* A victim pursuing lost wages or loss of earning capacity is complaining about their job, showing off a DIY home improvement project, or sharing links for online work-from-home websites.

* A victim posts financial resource-demanding plans for the near future (making a large purchase, taking a vacation, etc.).

* A victim whose settlement agreement contains a confidentiality provision announces the settlement on social media.

This is not an exhaustive list. Even posting something that you believe helps your case can invite a harmful response from a social media troll or other ill-willed social media user.

THE BOTTOM LINE. Your safest bet is to avoid social media altogether while your case is pending. You must continue to monitor your account to make sure that well-meaning friends and family do not mention you in their public or unprotected posts.

YOUR LAWYER CAN HELP YOU AVOID MISTAKES. We provide personalized advice to each client at every step in the personal injury process, including how social media can undercut your personal injury claim. We provide a free case consultation where we answer your questions and evaluate your case. To schedule this free consultation, call 253.858.5434.

How does the personal injury claim process work?

Auto collisions happen every day. Car crashes, in fact, are a leading cause of injuries and deaths in the United States. The National Safety Council reports that accident-related injuries impact more than 3 million people in the U.S. each year. These injuries lead to financial losses that pile up long after the collision occurred.

If another person’s careless or reckless conduct caused your injuries, you could be entitled to compensation for your economic damages. You could also receive compensation for non-economic damages such as pain and suffering, mental anguish, emotional distress, inconvenience, loss of enjoyment of life, etc.

To pursue a financial recovery, you need to go through the personal injury claims process:

INITIAL CONSULTATION. The process starts with meeting a lawyer. Most personal injury law firms, including our firm, provide this initial case review at no charge. During the consultation, you will discuss the details of your case, including the nature of the collision and the extent of your injuries. The lawyer will ask you a series of questions. You should ask your own questions, too.

The lawyer can advise you on the best course of action to take in your case and describe the types of compensation that may be available to you. You and the lawyer should also discuss attorney’s fees. For instance, at our law firm, we work with personal injury clients on a contingent fee basis. Our clients pay nothing unless we secure a financial recovery for them.

DEMAND PACKAGE. Once you're done treating and your doctors have an expert opinion on the nature and extent of your injuries, the lawyer will begin collecting your medical record, wage loss records, and other evidence they plan to use to support your claim. All of this information is sent to the at-fault driver's insurance company along with a summary of the facts of the case, the lawyer's theory of liability and causes of action, and a demand for settlement. If settlement negotiations don't resolve your case, the lawyer will talk with you about filing a lawsuit against the other driver.

FILING COURT DOCUMENTS. If you move forward with filing a personal injury lawsuit, your attorney will file and serve a Summons and Complaint and all other required documents. The party you sue will be listed as the Defendant on the Complaint. You will be listed as the Plaintiff. The Complaint will state the facts of collision and your injuries, the legal basis for holding the defendant liable, and the types of damages that you are seeking. The Defendant's insurance company will then hire a lawyer for the Defendant who will file an Answer to the Complaint.

DISCOVERY. After both sides file and serve these initial documents, the parties will enter discovery. This is a formal evidence-exchanging process.

During discovery, your lawyer will send a list of questions, or interrogatories, to the Defendant. The lawyer will also submit a request for production of documents. Both sides may also take depositions, or sworn statements. The Defendant's lawyer may also require you to be seen and your medical records reviewed by a doctor of their choosing.

Additionally, your lawyer may consult with an accident reconstruction expert or medical experts. Those experts can help your lawyer to understand your case and provide reports. If your case goes to trial, one or more of these experts may testify on your behalf.

PRETRIAL MOTIONS AND HEARINGS. Attorneys typically use pretrial motions to compel the other side to provide evidence. However, attorneys may also file motions that are aimed at resolving a case before it goes to trial. For instance, the Defendant’s attorney may file a motion to dismiss all or part of a lawsuit based on a lack of evidence or jurisdiction. The Plaintiff’s attorney, on the other hand, may file a motion for summary judgment. This motion would argue that the facts in the case are undisputed, and the judge should, in turn, grant immediate relief.

SETTLEMENT NEGOTIATIONS. The attorneys for both sides typically try to reach a settlement before a case goes to trial. In a settlement, the Defendant agrees to pay compensation, and the Plaintiff agrees to release the defendant from liability.

The negotiation process starts with the Plaintiff making a demand for compensation. The Defendant replies with an offer. The parties may go back-and-forth several times. In many cases, the parties bring in a mediator. The mediator’s role is to get the parties to reach an agreement.

TRIAL. If the parties fail to reach a settlement, a personal injury case will go to trial. Typically, the trial involves two stages. First, the jury decides if the Defendant is liable. If so, the jury determines the amount of damages to award the Plaintiff.

COLLECTING YOUR JUDGMENT OR SETTLEMENT. After you reach a settlement with the other side or a court enters a judgment in your favor, your lawyer will go through the process of collecting and distributing the funds, including the funds owed to you.

POST-TRIAL MOTIONS AND APPEALS. If the court enters a judgment in your favor, the Defendant may file a post-trial motion that seeks to set aside that judgment or reduce the amount of damages that a jury awarded to you.

The Defendant could also pursue an appeal, which involves asking a higher court such as the Washington State Court of Appeals to determine whether any legal errors occurred at the trial. While a case is on appeal, the parties may actually resume settlement negotiations in an effort to bring timely closure to the case.

If you or someone you love suffers injuries due to another’s negligence, contact us at 253.858.5434 to set up an appointment today.

An estate plan is simply the plan someone makes for the management of their affairs if they become incapacitated and the plan for administering their estate after they die.

An estate plan is the plan a person makes for the management of their finances and health care in the event they become incapacitated, and the plan for the administration of the person’s estate after they die. Under Washington law, a person typically uses an estate plan to accomplish these goals:

* control how the person’s property will be distributed upon their death;

* avoid uncertainties in the administration of probate proceedings;

* avoid or minimize estate tax liability;

* arrange for the care of the person’s minor children and other dependents upon the person’s death;

* appoint others to manage the person’s financial and medical matters if they unable to do so, either because of age, illness, or injury; and

* choose whether life-sustaining treatment should be continued if the person is ever in a terminal or permanent unconscious condition without any reasonable probability of recovering.

Estate plans accomplish these goals using a variety of legal devices, such as Wills, Trusts, Powers of Attorney, and Health Care Directives, together with beneficiary designations and ownership interests of non-probate assets. Every person’s unique needs and goals must be considered when deciding which devices to use for the person’s estate plan.

A basic estate plan includes legal documents which, together with proper non-probate asset beneficiary designations, are likely to address the estate planning needs of a lot of people. The term “basic estate plan” is not a clearly defined term in the legal industry. We use the term “basic estate plan” to mean an estate plan made up of some or all of the following documents: a simple Will, a Durable Power of Attorney for financial matters, a Health Care Power of Attorney, and a Directive to Physicians (commonly called a "Living Will").

More complex estate plans can include Wills with Trusts for children and grandchildren; Wills with sophisticated tax planning for larger estates that use Marital Deduction Trusts, Qualified Terminable Interest Property (QTIP) Trusts, Bypass Trusts, and Applicable Credit Amount Shelter Trusts; Revocable Living Trusts, Qualified Personal Residence Trusts; Irrevocable Life Insurance Trusts; Charitable Remainder Trusts; Grantor Retained Interest Trusts; Dynasty Trusts; and Family Limited Partnerships.

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, by phone, or via video conference.

Probate is simply the legal procedure your estate goes through after you die. Probate is always easier if you leave a Will that clearly defines your wishes.

In basic terms, probate is simply the legal procedure your estate goes through after you die. During this legal proceeding, a court will start the process of distributing your estate to the proper heirs.

Probate is always easier if you have a Will that clearly defines your wishes. This document helps most by naming your beneficiaries and a Personal Representative. A Personal Representative (or PR) is the person charged with overseeing your final wishes. Creating a Will makes a difficult life event a little easier on your loved ones.

It’s important to understand that your Will still must go through probate, but it’s so much simpler when you have planned ahead. During probate, a court will first authenticate your Will, and then authorize your OR to pay all debts and taxes and distribute your remaining property accordingly, per the instructions you leave.

WHAT IS PROBATE? Probate is a court-supervised proceeding that authenticates your Will (if you have one) and approves your named PR so they can distribute your property and belongings. During the probate process, all your assets must be located and assessed for total value. Once that is done, taxes and debts are paid and the remaining value of the estate is distributed.

In cases where there is no Will (meaning you died "intestate"), this process obviously becomes more complicated. Because there is no documentation stating your final wishes, it is up to the courts to handle proceedings and make all decisions for you.

WHEN IS PROBATE NECESSARY? Unless you properly plan, your estate will go through the probate process. That said, the process is greatly simplified, or potentially even totally avoided, when you have a solid estate plan in place. The more planning you do now, the easier it will be on your loved ones after you pass. One way to lessen the burden and headache of probate, or even avoid it altogether, is by creating a Revocable Living Trust. Any assets you place into your Revocable Living Trust will bypass probate.

Think about probate as a supervised process that ensures the proper beneficiaries receive the appropriate titles and assets from your estate. In cases where no Will or Revocable Living Trust is present, it is the court’s job to appoint someone to represent your estate. Some assets and property in an estate will always go through probate, while others (like those in a Trust) will not.

WHAT HAS TO GO THROUGH PROBATE? If you do not have a Will, all "non-probate assets" you you own will go through probate. This is basically anything not held in joint tenancy with right of survivorship or anything that does not have a beneficiary designation.

WHAT DOES NOT HAVE TO GO THROUGH PROBATE? Certain assets and property will not go through probate. By properly planning, you can help avoid probate for any of the following.

* Items that have a Beneficiary designation: Naming a beneficiary on an asset means you can avoid probate. For example, life insurance policies, IRAs, etc. have named beneficiaries, so proceeds go directly to them without having to go through probate.

* Items placed inside a Living Trust: Because a Trust owns the items inside it, when you die, anything in your Trust can go to your beneficiaries as specified by the Trust, thus avoiding the probate process.

* POD (payable on death) or TOD (transfer on death) items: When you title property and assets such as bank accounts, real estate, retirement accounts, stocks and vehicles with “POD” and “TOD,” you can bypass probate and pay or transfer items directly to your named beneficiary.

* Jointly titled property: Property titled jointly with rights of survivorship will automatically go to the surviving joint owner after you die. There is no need for the property to go through probate in this case.

WHAT IS THE PROBATE PROCESS? How the process of probate plays out in court largely depends on whether or not you have a Will. The biggest difference is that when no Will is present, your state's laws of intestacy will determine who receives your net estate.

1. Death Certificate. Obtain a copy of the decedent's death certificate from the county Health Department.

2. Have the Will Validated. The Will must be authenticated by the court to ensure it was properly signed and dated in accordance with the law. Once this is done, the Will is considered valid.

3. Select Someone to Conduct Probate. In cases where there's a Will, a judge formally appoints the person named as PR (only in very rare cases would the court overturn your choice). The PR then oversees the process and settles your estate. If there is no Will, the court will appoint a PR. State law sets forth the priority of people entitled to serve as PR

4. Post a Bond. Posting a bond protects beneficiaries against potential errors a PR might make during the probate process. Bonds may be quite costly, but your estate will pay for it. Bonds are not always necessary, as some states will waive them if your PR is also a beneficiary of your estate. You can also include a request to waive a bond in your Will.

5. Inform Beneficiaries & Creditors. This is likely the biggest task most PRs will undertake. It involves finding and informing any potential beneficiaries and possible creditors of your passing. They will also need to communicate with creditors to settle your debts using money from your estate. Keep in mind that in cases where there is a Will, most, if not all, beneficiaries will be named, so informing them is usually an easier task. Finding creditors can be more difficult and time-consuming, regardless of whether or not a Will is present. It should make sense that both parts of this process become exponentially more difficult when there is no Will.

6. Determine Value of Assets/Property. To determine the value of an estate, an inventory and appraisal must first be completed. This will account for everything you own at the time of your death. Sometimes, particularly in larger estates, a professional appraiser may be needed. This person understands the process of collecting and inventorying all real estate, personal, and household items to assess their value. The total combined value is then used to estimate the value of your estate.

7. Pay All Fees and Debts of the Deceased. Funeral expenses are typically paid from your estate. Once this is paid, the estate will fund the payments for medical expenses, filing and paying taxes, and handling other unpaid debts you may owe at the time of your death. This step needs careful attention, because there is potential for debtors to go after beneficiaries in the future to recoup any unpaid debts.

8. Distribute Remaining Assets. After all the debts have been paid, any remaining assets will be forwarded to the appropriate beneficiaries. The PR will transfer deeds and titles into the correct beneficiary’s name, per the direction of the Will or the court.

9. Final Report or Decree of Distribution. Once everything is all distributed, the PR files either a Declaration of Completion (basically reporting to the court and the beneficiaries all the expenses that were paid and that all distributions have been made) or files a Petition for a Decree of Distribution, requesting the court's approval of everything the PR has done.

If you have questions about the probate process or have been named as PR of a loved one's estate and need legal representation, give us a call at 253.858.5434 to set up an appointment today.

Insurance companies use many tactics to fight personal injury claims. They have an interest in denying your claim, and they're really good at it. We can help with your case!

Insurance companies use various tactics to fight your personal injury claim. They are for-profit companies that have a vested interest in denying injury claims, and many of them have gotten quite good at it. We’ve represented personal injury clients for more than two decades, and we’ve dealt with all the tactics and strategies that insurance companies tend to use time and again when defending cases.

SHIFTING THE BLAME TO YOU. Washington is a comparative negligence state, which means a personal injury claimant's damages can be reduced by the percentage of fault they themselves contributed to the collision or other incident which caused the injury. This means that in our state, if a court finds you are even 25% at fault for the accident that injured you, the amount of your jury award gets reduced by 25%.

What this means in practice is that the other driver’s insurance company will often try to convince you that your claim has a reduced or even no value because your actions played some role in the collision. However, just because they tell you that you were comparatively at fault and deny your claim doesn’t give them the final word. It simply means that you need to get a lawyer who can evaluate your case and help you examine your legal options to get fair compensation for your injuries.

FOCUSING ON A PRE-EXISTING MEDICAL CONDITION. Most personal injury claims are based on the legal theory of negligence. This means that you must show that not only did the other party do something reckless or irresponsible but also that their irresponsible actions caused your injuries. One way that insurance companies often try to dispute personal injury claims is by capitalizing on the second requirement and arguing that the victim’s injury was pre-existing rather than caused by the negligent party.

For example, suppose you were stopped at a red light when another car suddenly rear-ended you. In the past, you had occasionally complained of back pain to your doctor and visited a chiropractor for relief. A post-collision MRI shows new degenerative changes in your spine along with a disc herniation (which is where the gel-like nucleus of a spinal disc pushes through its fibrous exterior, causing pain and nerve damage).

Next, the insurance company combs through your medical records prior to the wreck and looks for any little thing they can blame your injuries on besides the collision. It doesn’t matter that you’ve had no health problems or injury issues for a long time prior to the wreck. The insurance company denies your claim, arguing that your herniated disc was present before the injury.

So how can you respond to this argument? Unfortunately, proving that an injury didn’t exist before a crash or that a crash made an injury worse can be a tricky and complex process. The best option is to work with an experienced lawyer who can carefully assess your medical records, collaborate with credible expert witnesses, and apply state law to the facts of your case.

QUESTIONING YOUR CREDIBILITY. After suffering injuries in a wreck and filing a claim, you might feel like you’re the one on trial. Insurance adjusters will scrutinize your motives and credibility, tracking your whereabouts and looking at your social media feeds to find anything they can use against you. If they find inconsistencies in your information—even ones that have innocent explanations—they’ll most likely deny your claim or use that information to offer you a low settlement amount.

It’s always in your best interest to give the insurance company and your doctors honest and accurate information. However, even if you’re being truthful, the insurance company can spin your activities and statements to seem like you have ulterior motives. (That’s why we always recommend that injured victims consult an attorney before they have any post-crash contact with the other driver’s insurance company.)

Thankfully, a skilled lawyer should be able to uncover all the relevant evidence so they can help clarify your situation and rebuild your credibility after such a defense. Your lawyer should be able to analyze the facts, point out weaknesses in the surveillance and other data, and help paint a truthful and accurate picture of your situation.

SEARCHING FOR PROCEDURAL MISTAKES. Unless you’re familiar with the Washington Rules of Civil Procedure, it’s easy to make mistakes that can reduce or eliminate your damages. All states have a strict set of rules that you must follow when you file a lawsuit. They include:

* Statutes of limitations: The law creates strict filing deadlines for most types of claims. The statute of limitations for Washington negligence claims is typically three years (two years in Idaho).

* Jurisdiction and venue issues: You must file your lawsuit in a court that has the legal authority to hear your claim.

* Insufficient pleadings: In your Complaint, you must properly allege a legal claim against the correct parties.

The court can dismiss your claim due to a single mistake in any of these areas, resulting in your case being delayed or you permanently losing your right to compensation.

Rather than risk losing your claim on a technicality, it’s almost always in your best interest to consult an attorney. An experienced lawyer can help you comply with Washington’s litigation processes and avoid costly errors.

PRESSURING YOU TO SETTLE BEFORE YOU CONTACT A LAWYER. Sometimes, the insurance adjuster will offer you a settlement and then try to convince you that hiring a lawyer isn’t worth the expense and effort. Instead, they will say, you should just take the money they offer you and move on with your life. However, when you negotiate and accept a settlement without help from a skilled lawyer, you can miss important claims and undervalue your damages. There’s a very good chance that when you take a settlement offer from the insurance company without talking to a lawyer first, you’ll end up accepting too little and discovering later that your settlement doesn’t cover the full long-term costs of your injuries.

Unlike the insurance adjuster, your lawyer will always have your best interests in mind and strongly advocate on your behalf. At our law firm, we help our clients calculate their damages accurately and educate them about their legal rights. And when you work with us, you won’t pay any attorney’s fees unless you make a financial recovery.

If someone’s negligence caused injuries to you or a loved one, contact us for a free, no-cost consultation. To schedule an appointment, call us at 253.858.5434.

Young parents don't expect to die while their family is young, but planning for the possibility is prudent and responsible. Having an estate plan can avoid disastrous consequences for your family.

Many young families put off estate planning. If asked, they may say they are too young, healthy, or cannot afford it. Some have trouble even thinking about what could happen if they were to pass away while their kids and spouse are depending on them. But even a healthy, young adult can be taken suddenly by an accident or illness, and those with young families need estate planning precisely because others are depending on them.

Of course, you are not expecting to die while your family is young, but planning for the possibility is prudent and responsible, and it shows your family how much you care. Not having an estate plan can have disastrous consequences for your family.

A good estate plan for a young family will include naming someone to administer the estate (a Personal Representative) and Trust (a Trustee), naming a guardian to care for minor children, providing instructions for the distribution of your assets, and naming someone to manage the inheritance for your children until they become adults or otherwise reach the age that you select. It will also include reviewing your insurance needs and planning for disability.

NAMING A PERSONAL REPRESENTATIVE FOR YOUR ESTATE AND A TRUSTEE FOR YOUR TRUST. This person will be responsible for handling your final financial affairs—locating and valuing assets, locating and paying bills, distributing assets, hiring a lawyer and other advisors—so it should be someone who is trustworthy, willing, and able, and who knows you and will carry out your wishes. If you are married, this might be your spouse. You should also consider alternates to the initial person you wish to name.

NAMING A GUARDIAN FOR MINOR CHILDREN. If something happens to one parent, the other parent will continue to raise the children (unless the other parent is physically or emotionally unable to do so). But who will raise them if something happens to both of you? This is often a difficult decision for parents, but it is very important because if you have not named a guardian, the court will have to appoint someone without knowing your wishes, your children, or your family members.

PROVIDING INSTRUCTIONS FOR DISTRIBUTION OF YOUR ASSETS. Most married couples want their assets to go to the surviving spouse if one of them dies. If both parents die and the kids are young, they want their assets to be used to care for their children. Some assets will transfer automatically to the surviving spouse by beneficiary designations and how title is held. However, an estate plan is still needed in the event the surviving spouse becomes disabled or dies so that the assets can be used to provide for the children.

NAMING SOMEONE TO MANAGE YOUR CHILDREN'S INHERITANCE. Unless you include this in your estate plan, the court will appoint someone to oversee your children’s inheritance. This will likely be a professional fiduciary and a stranger to your family. It will cost money, which will be paid from the inheritance. Also, the children will receive their inheritance (in equal shares) when they reach legal age, usually age 18. Most parents prefer that their children inherit when they are older and the money used to care for the children’s different needs. Establishing a Trust for your children’s inheritance lets you accomplish these goals and select someone you know and trust to manage it. This may be the same person you name as guardian to raise and care for your children, but it is not a requirement.

REVIEWING INSURANCE NEEDS. Part of the estate planning process is reviewing the amount of life insurance on both parents. Income earned by one or both parents would need to be replaced; also, one or more people would probably be needed to take over the responsibilities of a stay-at-home parent. Additional coverage may be needed to provide for your kids until they are grown, and even more if you want to pay for college.

PLANNING FOR DISABILITY. It is possible that one or both parents would become disabled due to injury, illness, or even a random act of violence. This should be planned for as well. Both parents need healthcare powers of attorney that give someone else legal authority to make healthcare decisions for them if they are unable to do so. You would probably name your spouse to do this, but one or two alternates should also be named in case your spouse is also unable to act. A HIPAA authorization will give your medical providers permission to discuss your medical information with others (parents, siblings, and close friends). Disability income insurance should also be considered because life insurance does not pay in the event of a disability.

PUTTING YOUR PLAN IN PLACE. Estate planning will require you to think about family relationships, and some decisions may be difficult. But an experienced lawyer will be able to help you through the process, provide valuable guidance, and make sure your plan will do what you want when it is needed. If finances are tight, as they usually are for young families, start with the most essential legal documents and term life insurance, then update and upgrade your plan as your financial situation improves. The most important thing is to not put this off. Not having a plan can result in a worse financial situation for your family caused by court costs and delay in accessing your assets. Once your plan is in place, you will have peace of mind that your family will be protected if something should happen to you.

If we can be of service to you, your family members, 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, by phone, or via video conference.

One of the advantages of using a Revocable Living Trust, instead of a Will, to leave the bulk of your property is that it give your family more privacy.

One of the advantages of using a Revocable Living Trust, instead of a Will, to leave the bulk of your property is that it gives your family more privacy.

WILLS ARE PUBLIC DOCUMENTS. You can keep all of your estate planning documents private as long as you're alive. After you sign your Will, for example, you can and should just keep it in a safe place (such as a fireproof box); you do not have to file it with a local court or other government entity.

After a person dies, however, most states require that whoever has possession of the deceased person's Will must promptly file it with the probate court. This is true even if there won't be any probate proceedings. Someone who has the Will but intentionally fails to file it can be penalized by the court and can be sued by the estate beneficiaries.

Once a Will has been filed, it's a matter of public record, open to anyone who wants to see it. That's why celebrities' wills show up online so quickly, often just hours after they have been deposited with the court. The public isn't interested in most ordinary folks' Wills, of course, but a relative or nosy acquaintance might be, and some people just don't like the idea that anyone could see how they choose to leave their estates to their friends, families, and charities.

TRUSTS STAY PRIVATE. A Revocable Living Trust never needs to be filed with a court, either before or after your death. The court isn't involved in supervising your Trustee, the person you name in the Trust Agreement to handle the distribution of the assets. The Trustee simply follows the instructions you wrote in the Trust Agreement, without getting permission or approval from the court.

WHAT YOU CAN'T KEEP PRIVATE. Sometimes, details of how you intended to leave your property can't be kept entirely private—whether you use a Will or a Revocable Living Trust to handle your affairs.

(1) Terms of the Trust, if state law requires disclosure to relatives. Many states require that if you leave a Living Trust, the Trustee, after your death, must give a copy to the beneficiaries (people who inherit Trust property) if they request it. In some states, beneficiaries only get to see the part of the document that pertains to them—but in others, they can see the whole thing, which means that one beneficiary may be able to see what all the others are inheriting, too. And in some states, the Trustee must notify certain close relatives—usually defined as the people who would inherit under state law in the absence of a Will—about the Trust after your death, and give them a copy if they request it.

(2) Real estate ownership. Who owns real estate is always a matter of public record. Anyone can look up a particular parcel of real estate in the county records office (often called the County Recorder or County Auditor, depending on where you live) and find out who owns it. (Often, other information is also available, such as the amount of property taxes paid each year.) So once your real estate has been transferred to the person who inherits it, it will be a matter of public record.

(3) Lawsuits. If you leave a Revocable Living Trust and a disgruntled relative sues over your estate, the Trust Agreement will probably become part of the public record of the lawsuit. These kinds of suits are rare, however, and usually crop up only when offspring who are expecting an inheritance are left with nothing or almost nothing. So unless you think someone has reason to strongly object to your estate plan, you probably don't need to worry about a court battle after your death.

If you have questions about the advantages and disadvantage of using a Revocable Living Trust as part of your estate plan, give us a call at 253.858.5434 to set up an appointment today. We represent clients throughout Washington and Idaho and are available to meet in person, by phone, or via video conference.

Special procedures and rules to handle trust and estate disputes in Washington under the Trust and Estate Dispute Resolution Act (TEDRA).

Trust and estate disputes in Washington are governed by the Trust and Estate Dispute Resolution Act (RCW 11.96A.010-.902, generally referred to as “TEDRA”). This law sets out special procedures and rules to handle such disputes, with a focus on faster court processes, alternative dispute resolution, and modified rules for attorneys’ fees.

Many people try to set forth a detailed and thoughtful plan for what will happen to their assets after their death. However, conflict frequently occurs when it comes time to carry out the decedent’s wishes. An untimely death may prevent the decedent from putting their affairs properly in order, leading to confusion and conflict; the potential heirs and beneficiaries may dispute the validity of a Will or other testamentary instrument; a Personal Representative may cut off communication with the heirs and beneficiaries, or there may be signs that the Personal Representative is breaching their duties; an heir or beneficiary may threaten the entire estate with groundless accusations and the threat of litigation.

With Trusts, conflict frequently arises as the Trust continues to operate year after year, growing farther and farther away from serving the purpose it was made for. There may be signs that the Trustee is failing to follow the purpose and specific instructions of the Trust instrument; the Trustee may waste or embezzle the property of the Trust; the Trustee may fail to properly inform the beneficiaries regarding Trust operations; there may be a dispute regarding interpreting the language of the Trust instrument; or perhaps the beneficiaries seek to modify the Trust for liquidity, tax savings, or other purposes.

In these situations, conflict between fiduciaries, heirs, and beneficiaries can easily boil over into active litigation – in that case, the procedures and rules of TEDRA will apply.

SPECIAL RULES FOR TRUSTS AND ESTATES. Even in the absence of conflict between fiduciaries, heirs, and beneficiaries, the rules and procedures of TEDRA may still come into play in special cases. For example, TEDRA may govern situations where minors or disabled individuals receive property under a Will or Trust; where individuals who would ordinarily be involved in a Trust or estate proceeding cannot be located or refuse to participate; or where the disposition of assets or the instructions of the decedent are unclear given the facts of the case. In these examples, an experienced lawyer can work to efficiently resolve the procedural roadblocks that prevent a Trust or estate matter from being resolved to the satisfaction of all parties.

WHY SHOULD YOU HIRE AN ATTORNEY FOR YOUR TEDRA CASE The laws surrounding TEDRA are complex and different from the standard rules in Washington for general civil litigation. An experienced lawyer can properly explain the opportunities and risks of TEDRA litigation, work to resolve conflicts through informal communication and alternative dispute resolution, save time and money from being wasted on procedural mistakes or researching this specialized area of the law, and maximize the chances of a favorable attorneys’ fees award in your case.

If you or members of your family are involved in a dispute regarding a Will or Trust, give us a call at 253.858.5434 to find out how TEDRA may apply to your case.

The attorney handles the legal aspects of a personal injury case, but what are a client's responsibilities to ensure that their case is successful?

Attorneys carry much of the responsibility for ensuring that a personal injury case is successful. However, legal representation is a partnership, and you need to work with your lawyer to get the best resolution to your case. While your attorney will handle the legal aspects of the case, you will have many responsibilities as the client—duties that can increase your settlement amount and help win your case.

Your first responsibility after you are injured is to make sure you stay up to date with your medical care. If you cancel appointments or don’t follow your treatment plan to the letter, the insurance company and defense attorney may assume that your injury is not all that serious. You should keep any follow-up appointments, and follow all recommendations made by your doctors and specialists.

As a client, you can also greatly benefit your case by:

* Aiding in gathering evidence. We'll give you a list of the kinds of documentation we need, including a record of the time you missed from work, your medical records from all the facilities that treated your injury, your various insurance policies, and a statement in your own words about how your injuries have impacted your daily life.

* Telling your lawyer the truth. You should not lie or hide any details that could be relevant to your case. If you fail to disclose information to your attorney, they will be less prepared during the case. If you are not sure if something is relevant, it’s best to tell your lawyer rather than withhold the information.

* Keeping your lawyer informed. The details of your case may change as the case progresses, and you need to share new evidence, medical progress reports, and communication from insurance companies and employers with your attorney. If you cannot make a meeting or attend court proceedings, always let your attorney know as soon as possible.

If you've been injured you need to speak with a lawyer as soon as possible. Please contact us at 253.858.5434 to schedule your free consultation.

Good estate planning shows love and respect for the people you care about by creating a road map to ease your family's burden of administering your estate.

The “real” purpose of estate planning is to show love and respect for the people you care about. Upon your death, you don’t want to compel your family, friends, and business partners who are involved with your estate to deal with a complicated, expensive, and time consuming mess in administrating your estate. To the contrary, good estate planning creates a road map to ease the burden of estate administration. At our law firm, we will listen to your needs and goals, make recommendations based upon your individual circumstances, and prepare documents including:

* Wills

* Testamentary Trusts in Wills for children and dependents

* Naming Guardians in Wills in the event of both parents’ deaths

* Trusts designed to minimize or eliminate state and federal estate tax

* General Durable Powers of Attorney for financial matters

* Durable Powers of Attorney for health care decisions

* Health Care Directives (“Living Will”)

* Living Trusts

* Community Property Agreements

We strongly believe that every adult should have a Will. The decisions involved in finalizing a Will are a very healthy process for people to undergo. Everyone’s situation is unique. What’s your unique story? How does that influence your estate planning goals now? By creating a Will, you can turn those goals into a reality.

The Pacific Northwest is demographically diverse. We represent single people, married people, and people in long-term committed unmarried relationships. We represent straight people and gay people. We recognize the unique challenges that any relationships can pose in estate planning, and we’re happy to work with you to make sure your goals are met. We can also help make sure that people take care of their pets as part of the estate planning process. Pets are part of your family too!

If you, your family, friends, neighbors, or co-workers have estate planning 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, by phone, or via video conference.