Probate is the legal process that takes place after someone dies that determines how the deceased person's assets will be distributed.

If you’re involved in administering and settling an estate, one of the first questions you ask is probably, “What is probate?” Probate is the legal process that takes place after someone dies that determines how the deceased person’s assets will be distributed.

In most circumstances, the Personal Representative named in the Will assumes the role of handling probate. If there's no Will, state laws of intestacy will decide the rules of inheritance. Keep in mind that the probate process and timeline will vary depending on the state but, in general, probate law requires these steps.

STEP 1: FILE A PETITION TO OPEN A PROBATE ESTATE. You’ll have to file a request with the Court in the state where the deceased person lived. Here in Washington, a probate petition can be filed in any county in the state, as long as no one objects to venue, in which case the matter will have to be transferred to the county where the deceased person lived at the time of their death. The paperwork will ask for you to be officially acknowledged as the Personal Representative representing the estate. In addition to the petition, you’ll need to file a valid Will, if one exists, and the death certificate. If there's a Will, the Court will automatically appoint the persona named as PR (assuming they are able and willing to serve). If there is no Will, and if the heirs don't consent to the appointment of the nominated PR, then a hearing is scheduled to approve the Personal Representative (or hear objections from other parties). If you’re approved as PR, the court will officially open the probate case and you will now be able to act on behalf of the deceased’s estate.

STEP 2: GIVE NOTICE. You’ll need to mail a notice that the estate is in probate to all creditors, beneficiaries, and heirs (as required by law). You will also publish a notice in a newspaper in the county where the deceased person lived at the time of their death.

STEP 3: INVENTORY ASSETS. Collect, inventory, and appraise all assets that are subject to probate, such as:

* Bank accounts.

* Retirement accounts.

* Stocks and bonds.

* Real estate.

* Personal effects, such as vehicles, art, jewelry, etc.

STEP 4: HANDLE BILLS AND DEBTS. Collect money owed to the estate, such as outstanding paychecks and rents. Also review any outstanding bills and debts, as well as any creditor's claims that are properly filed with the court, and decide whether/how they must be paid. This may require some sleuthing on your part. You might need to go through checkbooks, emails, and/or bank accounts to gather information. You'll need to ensure the estate's assets can cover all debts before paying them. If not, the court will prioritize creditor claims.

You'll also need to pay all applicable taxes, as well as file a final income tax return on the estate. It's usually a good idea to set up an estate account for paying the estate's final bills and expenses.

STEP 5: DISTRIBUTE REMAINING ASSETS. With all claims, taxes, debts, and expenses paid, you'll give the remaining property to the rightful heirs and/or as the Will directs.

STEP 6: CLOSE THE ESTATE. Once everything has been distributed, you’ll submit receipts and records of everything to the court and then ask for the estate to be closed – and to be released from the role of Personal Representative.

If you’d like some guidance as you go through the process, we can help. Give us a call at 253.858.5434 to set up an appointment today.

Injury cases typically arise from auto collisions involving adults. But what if a child is injured? The law has special rules for injury cases involving minors.

Injury cases typically arise from auto collisions and other incidents involving adults. But what if a child is injured? The law seeks to protect the interests of children who are injured and has fashioned special rules for compensation in cases involving children. Any settlement reached for injuries suffered by a child must be approved by the court, even if no lawsuit is initiated. If a minor is injured in a collision and their parents hire a personal injury attorney to pursue a claim against the insurance company, the court’s approval is required when any settlement is ultimately reached.

In effect, an additional procedural layer has been created by statute that requires your lawyer to petition the court for approval of the settlement. When the court receives notice of the settlement, a person known as a Settlement Guardian ad Litem (or SGAL) is appointed by the court. This person is provided with information regarding the incident and injuries and assesses whether the settlement is in the interest of the child. The SGAL then will make a recommendation to the court based upon their evaluation.

Most minor settlements will also require some forethought regarding placement of the settlement funds. The parents are not entitled to the money received in the settlement. Instead, the money is usually placed into a blocked account or an annuity contract is purchased where the money can await the child to reach the age of majority. In cases where significant amounts are involved (more than $250,000 or so), the court may direct that yet lawyer be appointed to prepare a Trust for the child and a separate Trustee be appointed to administer, invest, and distribute that Trust.

It is important that you hire a personal injury attorney who is familiar with the law regarding minor settlements and who can help guide you and your family through the process. Our law firm has represented numerous minors in injury claims throughout Washington and offer a free consultation to discuss your claim. Give us a call at 253.858.5434 to see how we can help!

Deciding who will serve in the role of a "fiduciary" for you, your children, and your estate can be one of the most critical decisions you need to make as part of your estate plan.

In the estate planning context, a “fiduciary” is someone who will serve in a role of authority with regard to you, your assets, or your minor children. Fiduciary roles which may be part of an estate plan can include a Personal Representative, a Trustee, a Guardian and/or Conservator, an Attorney-in-Fact, and a Health Care Agent. Deciding who will serve in these roles can be one of the most critical decisions you need to make as part of creating your estate plan.

Some fiduciary positions must generally be filled by individual appointees, such as the roles of Attorney-in-Fact, Health Care Agent, and Guardian. Other fiduciary positions, such as the roles of Personal Representative, Trustee, or Conservator, can be filled by individuals, but in some cases it may be better to use a corporate fiduciary, such as a bank or trust company. A corporate fiduciary can also be used along with an individual co-fiduciary in certain cases.

How do you select a fiduciary? Certain criteria apply to any fiduciary choice, and the consideration process should look at the following factors:

* Is the nominee honest and trustworthy beyond doubt? A fiduciary role generally carries with it a lot of power, often coupled with low or no outside supervision. You do not want a fiduciary role filled by someone who may be tempted to abuse its power.

* Is the nominee responsible and willing/able to spend the time and effort to manage all needed tasks? A fiduciary is responsible for carrying out a number of tasks, many of which have strict timing requirements, and many of which are tedious and potentially time-consuming. You need to be sure that the nominee will do everything needed in a timely manner, and with great attention to detail. The fiduciary will often be able to hire people to assist with tasks, but the fiduciary is still responsible for ensuring everything gets done on time and correctly.

* Is the nominee generally reasonable and willing to work out disputes in a calm and logical manner? If disputes or concerns arise, you want the fiduciary to be someone who will deal with the issues in a reasonable manner and help keep the various parties calm so the issues do not get out of hand. Part of the fiduciary’s job is to help avoid potentially destructive litigation, not to throw fuel on any fires.

* Is the nominee someone who is good with financial issues? Many fiduciary roles involve dealing with assets–either your own or ones you have left to loved ones. Any nominee for such a fiduciary role needs to be able to handle financial and economic issues with safety and being conservative in mind. The fiduciary should not be someone who will make high-risk investments or take imprudent risks with the assets, and the fiduciary should also be someone who has enough sense to hire appropriate advisors, such as investment advisors, lawyers, and CPAs, when dealing with issues the fiduciary is not fully equipped to address alone.

* Is the nominee someone who is not likely to create disharmony among your beneficiaries, and who does not have any strong conflicts of interest? Some fiduciary roles, especially those of Personal Representative and Trustee, have powers and responsibilities over beneficiaries and can affect the beneficiaries’ interests in ways which the beneficiaries may not like. If the fiduciary is someone who is also a beneficiary, or who has a family relationship with the beneficiaries, the chance that the fiduciary’s actions will make the beneficiaries unhappy may be significantly increased. For example, if one child is named as PR or Trustee, where they need to deal with issues such as how assets are invested or distributed, the other children may be unhappy even if all of the fiduciary child’s actions are perfectly reasonable, simply due to resentment that the one child was given power over them. An all out family dispute can be the result of this situation. As another example, if a child is both the fiduciary and one of the beneficiaries, that child has to balance his beneficiary interest with his fiduciary duty to treat all beneficiaries fairly. If the other beneficiaries perceive the fiduciary child’s actions as benefiting that child over other beneficiaries, it could lead to accusations that the fiduciary child breached his fiduciary duties, which can again lead to resentments and potentially destructive litigation.

How do you decide to select a corporate fiduciary instead of, or in addition to, an individual? If there are insufficient assets available, then a corporate fiduciary may not be a realistic option (normally at least $1,000,000 in asset value, depending on the desired corporate fiduciary). However, if there are sufficient assets, you should consider selecting a corporate fiduciary, especially where there is not an obvious individual choice available. Corporate fiduciaries generally meet the criteria for fiduciary selection discussed above. In addition, the corporate fiduciary usually provides a team of dedicated professionals who are used to dealing with estate or trust administration issues, who have extensive experience and resources behind them, and who are dedicated to maintaining contact with the beneficiaries. Many people are afraid that a corporate fiduciary will cost too much. However, the corporate fiduciary often provides many services for which an individual fiduciary would have to hire third parties, such as investment management and tax return preparation.

Corporate fiduciaries provide a neutral, third-party perspective, which can be very helpful when dealing with potentially sticky issues such as when and how to make distributions to different beneficiaries of an estate or trust. However, for situations where the advice of a family member, close friend, or an individual advisor who knows the beneficiaries well may also be helpful, a corporate fiduciary can be named along with the desired individual(s) as co-fiduciaries. In such a situation, the corporate fiduciary can focus on the more routine tasks such as investment management, bill paying, and records maintenance, leaving the individual fiduciary free to focus on the beneficiaries’ needs and wants. A great example of a situation where it can be beneficial to have both an individual and a corporate fiduciary would be a supplemental needs trust, where the trust is intended to provide for a disabled beneficiary without causing the beneficiary to lose eligibility for

needs-tested benefits such as Medicaid. The corporate co-trustee of a supplemental needs trust can generally be counted on to ensure that the trust meets all restrictions and requirements, and the individual co-trustee can focus on communicating with the beneficiary and their caregivers to ensure that any needs or wants which the trust could fulfill are known, and that the beneficiary is receiving appropriate care and services, as well as companionship and fun.

What specific tasks do the different fiduciaries handle?

An Attorney-in-Fact is someone who can handle your finances and property matters on your behalf without court approval or oversight while you are still living. Having a Durable Power of Attorney which appoints an attorney-in-fact can help avoid the need for someone to be appointed as your conservator if you become incapacitated on a long-term basis during your lifetime. However, if you do not have someone who is completely trustworthy to serve in this role, you may be better off not creating a Durable Power of Attorney, since this position is easily abused.

A Health Care Agent works with your doctors, hospital personnel, other health care providers, and health insurance companies on your behalf if and when you are incapacitated or otherwise unable to deal with these matters on your own behalf. Having a Health Care Power of Attorney which appoints a Health Care Agent can help you avoid the need to have someone appointed as your guardian. It can also help ensure that the person making these decisions for you is the person you would want making them.

A Trustee handles the long-term administration of any trusts created under your estate plan, including deciding how trust assets are invested and used for or distributed to the trust’s beneficiaries. Please note, a Trustee can serve either for you, during your lifetime, if you have created a revocable living trust, or for your desired beneficiaries after your death.

The Personal Representative handles the probate and estate administration processes after your death, if there are any assets which need to be distributed under your Will. This is a relatively short term position. If the Will provides for assets to be distributed to any trusts, the Trustee appointed will take over eventually.

The Guardian will take custody of any minor child or children who survive you (if the children’s other parent is not still living), and effectively acts as a replacement parent.

A Conservator is appointed to take care of any assets which may pass to a minor child outright; if you have a well-drafted estate plan which provides for trusts to be created for minor children, a conservator may not be needed, unless the children already have assets in their names before your death.

As part of developing an estate plan, it is critical to consider fiduciary selection issues and select appropriate nominees for the various fiduciary roles. We have lots of experience in helping our clients think about these issues. To request further information on these issues, or to schedule a meeting with us to review your current fiduciary choices and consider any necessary or desirable changes, please do not hesitate to contact us at 253.858.5434.

If you have a child under 18, you should have a Will to name a guardian in the event of your death. Establishing guardianship in a Will is one of the best things a parent can do for their child.

If you have a child under the age of 18, you should have a Will to name a guardian for your child in the event of your death. Establishing guardianship in a Will is one of the best things a parent can do for their child. Why is it so important? Because if something happens to you, you would surely prefer to choose who assumes legal guardianship of your child instead of letting the court decide.

While it isn’t automatic that a court will approve your selection regarding guardianship of a minor, it is highly likely.

FACTORS TO CONSIDER WHEN DECIDING ON YOUR CHILD'S GUARDIAN. Choosing the guardian for your child is an extremely personal decision, but there are some common factors that parents should consider when coming to this decision. Some things to think about include the following:

* Personal and religious values: You most likely would prefer that your child is raised in a manner similar to how you would have raised them, which means that the more your chosen guardian’s personal beliefs and goals are in line with yours, the better.

* Keeping children together: If you have more than one child and are determined to keep them together, you should consider this in the choice of guardian and specify as such in your Will. Can your chosen guardian handle all of your children, emotionally and otherwise, and will the families blend well if the guardian already has children of their own?

* Financial situation: While ideally you will have provided financially for your children through estate and financial planning, it is a good idea to consider the financial position of a potential guardian when making your decision. Some parents choose to name someone else besides the chosen guardian to handle a child's inheritance; this is to prevent one person from having control over everything regarding the child, so this may be something else to consider regarding finances.

* Special needs: If you have a child with special needs, can your chosen guardian handle the care of your child, both financially and emotionally?

* Age of potential guardians: Although grandparents are often the first choice for parents in choosing guardians, be sure to consider the age and general health of grandparents when deciding. Will they be able to handle the physical demands of the guardianship of minor, especially if your children are still really young?

* Location of potential guardians: Will your child have to move far away from your home and everyone they know? How far away will other family members and important people in your child’s life be? Will your child have to change schools?

After choosing your guardian, although not legally required, it is highly recommended that you have a frank discussion with the person you would like to select as the guardian of your child to make sure they are willing and able to take on this esteemed role.

ESTABLISHING GUARDIANSHIP IN YOUR WILL. Establishing guardianship in a Will can be achieved by including the information in the document, which then must be properly executed according to state law (signed, witnessed, etc.). Note that if your child’s other parent is still alive, you should make sure they also name the same guardian in their Will in the event of both of your deaths. Consider, as well, naming an alternate guardian should your first choice be unable to take on the responsibility for any reason.

While it may not be a pleasant subject to think about, once you have included your choice for your child's guardian in your Will, you will have greater peace of mind knowing that your children will be well taken care of in the event of your death. After all, providing for your children is your most important duty as a parent, and part of that is making sure they are in good hands no matter what happens.

Start protecting your loved ones and assets by creating an estate plan today. Give us a call at 253.858.5434 to set up an appointment. We represent clients throughout Washington and Idaho and are available to meet in person, by phone, or via video conference.

Usually, auto collisions involving serious or long-term injuries require a lawyer to get the most desirable outcome. Hiring a lawyer almost always ensures a much better settlement.

Usually, auto collisions involving serious or long-term injuries require a lawyer to get the most desirable outcome. Auto collisions bring with them a host of questions. Who is at fault? Who pays for damage to my car? Who will pay for my medical bills? How much should I get for "general damages," e.g., pain and suffering, emotional distress, etc.? Can I ask the insurance company to reimburse me for lost wages? A lawyer can be extremely helpful in negotiating the often chaotic and confusing world of insurance claims and settlements.

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

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

Your lawyer can file a lawsuit on your behalf and will know how best to mitigate any possible defenses raised by the other side. In addition, once your case gets under way, your lawyer will play an invaluable role in preparing your case for trial--and even going to trial if your case doesn't settle.

Even though a lawsuit is rarely necessary, the threat of legal action offers strong leverage when negotiating a fair settlement.

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

LAWYERS DO THE LEGWORK. There is a lot of work that goes into negotiating an insurance settlement and trying a personal injury lawsuit. After you have been in an auto collision, taking on this time-consuming work may be the last thing you want to do, assuming you're able. A lawyer can do it for you.

Whereas this may be your first time dealing with the ins and outs of an injury claim, personal injury attorneys have dealt with all manner of claims and a variety of insurance companies. They have experience obtaining the necessary evidence to support your claim, including gathering police reports, witness statements, medical records and bills, and employment and lost wage information.

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

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

Having an experienced and articulate advocate working for you is essential in obtaining a reasonable and fair resolution in your personal injury case. If you or a friend, family member, neighbor, or co-worker has been injured in an auto collision, give us a call at 253.858.5434 to set up an appointment for a free initial consultation today.

Estate planning can be boiled down to this definition: An estate plan ensures that the right people are able to care for YOU if become incapacitated and the right people get your STUFF after you die.

Estate planning is a very broad (and often confusing) topic. There are countless estate planning options available, and the “best” estate planning option for you may depend on hundreds of different factors. Essentially, estate planning can be boiled down to a simple definition:

An estate plan ensures that the right people are able to care for YOU in the event you become incapacitated and that the right people are able to get your STUFF after your death.

The second part of that equation—what happens to your stuff, i.e., your assets—is what most people have in mind when they think about estate planning. And when it comes to deciding what happens to your stuff, there are two main options: (1) a Will; and (2) a Revocable Living Trust

WHY DO YOU NEED AN ESTATE PLAN? If you died today, what would you want to happen to your assets? Maybe you want your spouse to get everything. Maybe you don't want a certain relative to get anything. Or maybe you want to ensure your estate is used to pay for your child’s education. Whatever their preferences, most people care about what happens to their stuff after their death. Yet only ABOUT 42% of U.S. adults have a Will or a Trust. Part of that is likely due to the fact Wills and Trusts can be very complex, and lawyers usually don’t do a good job of explaining these two documents—or estate planning in general.

We want to change that. Keep reading and you will be able to dazzle your friends and family by answering these questions and by making an intelligent, informed decision regarding your estate plan. Well, "dazzle" might be a bit strong. But you will at least be able to impress them with your superior estate planning knowledge.

HOW ARE A WILL AND A TRUST SIMILAR? Before explaining how Wills and Trusts are different, it is important to understand how they are similar. After all, they both try to achieve the same estate planning objective: they both control what happens to your stuff (your assets) after your death.

1. Wills and Trusts are both revocable documents. To be more accurate, MOST Trusts are revocable. “Revocable” just means you can change or amend (or cancel entirely) the terms of the document during your lifetime—but only as long as you are mentally competent. If, for example, you develop severe dementia later in life, you may not have the legal capacity necessary to sign an estate planning document. Having a revocable document is important because things can change over time. You might want to change your beneficiaries, your representatives, or you might want to revoke your document entirely and start over. Both Wills and Trusts allow you to do that.

2. You can put someone in control of your estate. You don’t want just anyone to be in charge of your estate, do you? Of course not. That is one of the major benefits of having an estate plan: you get to choose someone you trust to ensure that your affairs are properly settled. In a Will, you can appoint a Personal Representative (what used to be called an "Executor") who will be in charge of your estate and who manages the probate process. In a Trust, you name a Trustee who similarly manages your assets and distributes your estate.

There are other similarities between a Will and a Trust, but these are the main characteristics that make them alike. What most people are interested in, however, is what makes these documents different.

HOW IS A WILL DIFFERENT FROM A TRUST? While there are some similarities between these documents, it is crucial to understand their differences.

1. A Last Will and Testament is subject to probate. There is a widespread misconception that having a Will means that your family will not need to go through probate in order to receive their inheritance. Unfortunately, that is not the case. A Will must be probated after your death to be effective. In other words: If you want to avoid probate, a Will is probably not the way to go. On the other hand, a fully funded Trust can eliminate the need to probate your estate.

Because a Trust does not cease to exist when you die, any assets that are titled in the name of your Trust at the time of your death can pass to your beneficiaries without the need for court approval. Probate can be expensive, time-consuming, difficult to navigate, and stressful and contentious. And considering it is not rare for attorneys’ fees, court costs, and other expenses to total several thousand dollars in a probate, avoiding the process entirely can save a lot of money.

2. A Trust can distribute your estate faster than a Will. Having a Will (which must go through probate) generally means that your estate won’t be distributed for at least 6-12 months after your death. We regularly see probates that take upwards of 2 years to complete. This means that your family might have to wait over a year before they can use the assets that you left them. If you are the sole breadwinner in your family, that can make things very difficult on your surviving spouse and/or children for a while. A Trust, however, can often distribute your estate within 30-60 days. No muss, no fuss. Since the terms of the Trust are not subject to court approval, the Trustee can settle the decedent’s estate as quickly as time allows.

3. A Will takes effect after your death; a Trust takes effect right now. Let’s suppose you fall into a coma and become incapacitated. Because a Trust is effective immediately upon signing, it can provide for the care of your assets and the care of your minor children during your lifetime. And if you also have a Health Care Power of Attorney, a Trust could avoid the need for someone to obtain a guardianship over you. But because a Will is only effective after you die, it doesn’t help you if you are incapacitated.

4. A Trust gives you more control over distributions. Suppose you have minor children (or other minor beneficiaries). If you were to die tomorrow, would you want your kids to receive all of their inheritance at 18? Most people would prefer to divvy up distributions over time. However, if you only have a very basic Will, then whenever the judge (metaphorically) bangs their gavel, your estate will be distributed immediately and your children can get their inheritance as long as they are 18. But if you use a Trust, or a more complex Will that creates a testamentary Trust, you can provide instructions to your Trustee that, for example, say a beneficiary should receive 1/3 of their inheritance at age 25, 1/3 at age 30, and the rest at age 35. You don’t have that option with a very basic Will.

Or what if some of your beneficiaries financially irresponsible? If you are concerned that a beneficiary might squander their inheritance, you can use a Trust to distribute a set amount of money per year to help make it last longer. A basic Will would distribute everything in a lump sum.

5. A Trust is a private document. Probate cases are a matter of public record. That means anyone can access documents and information filed in a probate case, including your Will and information about your assets and debts, business dealings, family relationships, etc. Any nosy neighbor or estranged relative can read your Will (even if you left them nothing) and even know if you faced any legal issues at the time of your death. A Living Trust avoids all of that. Because no one will need to file your Trust with the court, your personal and financial information can be kept private.

WILLS vs. TRUSTS: WHICH IS BETTER? Clients often ask whether a Will is better than a Trust, or vice versa. After all, people spend a lot of money on their estate plans. It makes sense that they want to know which document works best. Unfortunately, there is not an easy answer to that question. As we have said before:

Estate planning is not a one-size-fits-all proposition.

Sometimes, a Will might make more sense than a Trust. Other times, a client can benefit more from having a Trust than from having a Will. A Trust is generally more flexible, durable, and cost-effective (in the long term) than a Will. But it is usually also more expensive in the short term. However, cost should not be the sole factor on which you base your decision. Our job as estate planning lawyers is to help you consider all the relevant factors when deciding what estate planning option works best for you, your family, your estate planning goals, your assets, and any potential unintended consequences that could occur. Choosing an estate plan is a major life decision. Take time to think about what works best for you.

TALK TO A LAWYER. Although Wills and Trusts serve the same purpose, they achieve that purpose in very different ways. Because there is no “one size fits all” solution to estate planning, you should consult with us or some other qualified, experienced estate planning lawyer of your choice before creating your estate plan. To learn what estate planning options might work best for you, or to discuss updating your existing estate plan, contact us today at 253.858.5434. We represent clients throughout Washington and Idaho and are available to meet in person, by phone, or via video conference.

Between work, school, and after-school activities, families are busier than ever! But for young parents, it's especially important to take some time to create an estate plan.

Families today are busier than ever. Between work, school, and after-school activities, it can be hard to sit down and find the time to think about the future. Thinking about what would happen to your kids if you pass away is difficult but necessary. Young parents should consider whether or not their children will have enough money for their daily necessities, and for college.

Deciding who to appoint as the children’s primary caretaker is also an important decision. Young parents who haven’t completed their estate plan are not alone. A recent survey found that 64% of Americans do not have a Will. If you’re parents to young children, here are a few reasons why taking the time to create an estate plan is so important.

1. CHOOSING A GUARDIAN. Thinking about not being here to raise your kids can be distressing. Nonetheless, one of the most important parts of estate planning for families with young children is to appoint a primary caretaker. Choosing a guardian now can save your children stress and pain in the event of your death. When parents do not choose a guardian before their death, a judge will select a guardian. Parents may not want the person that the court selects as the guardian to raise their children.

When determining who to select as a guardian, consider whether the person lives close by, and whether they are physically up to the task of raising children. Is the person good with financial issues? Does the person have quality relationships? Would they have the parenting skills to raise your children in a safe and stable environment? These are all questions to consider when selecting a guardian.

2. ENSURING YOUR CHILDREN'S FINANCIAL SECURITY. As a young family, you may be working your way into financial stability. Many parents assume that since they do not have a wealth of assets, estate planning is not valuable. Young families do not need extensive assets in order to make estate planning valuable. For example, taking out a life insurance policy can provide the financial security your children need to become well-rounded adults.

We work closely with financial planners and life insurance advisors who can help you select an effective life insurance policy. In some circumstances, creating an irrevocable life insurance trust can be advantageous. Life insurance trusts allow the proceeds from the life insurance policy to pour directly into the trust and become available immediately.

3. APPOINTING A TRUSTEE. Most parents desire to give all of their assets to their young children should they pass away. Children are unable to manage their parents’ estate until they become adults, however, and guardianships end as soon as the child turns 18, which may not be an appropriate age for your kids to receive a substantial inheritance. Appointing a Trustee will help you make sure that your children receive money and assets at the appropriate time and that those assets are managed prudently and effectively until that time. Parents can appoint a Trustee to manage and distribute their assets to their children according to their wishes.

Many young families own cars, retirement accounts, and a house. A Trustee will manage the property for the children's benefit and make sure they receive all of the parents’ assets. When selecting a Trustee, choose someone who is trustworthy and up to the task of administering and appropriately distributing the Trust assets.

At our law firm, we understand that thinking about the possibility of passing away with young kids is difficult. If you need to create an estate plan, we can help you do so. Creating an estate plan early on in life can save you significant money in the long run and give you peace of mind. Give us a call at 253.858.5434 to set up an appointment today. We proudly represent clients throughout Washington and Idaho and are available to meet in person, by phone, or via video conference.

While estate planning is important for married couples, it is arguably even more necessary for couples who live together in long-term committed relationships without getting married.

While estate planning is important for married couples, it is arguably even more necessary for couples that live together without getting married. Without an estate plan, couples who aren't married but are in long-term committed relationships won’t be able to make end-of-life decisions or inherit from each other.

Estate planning serves two main functions: determining who can make decisions for you if you become incapacitated and who gets your assets when you die. There are laws in place to protect spouses in couples that have failed to plan by governing the distribution of property in the event of death. If you do not have a Will, property will pass to your spouse and children, or to parents or siblings if you die without a spouse or children.

But there are no laws in place to protect unmarried partners. Without a solid estate plan, your partner may be shut out of the decision making and the inheritance. The following are the essential estate planning steps that can help unmarried couples:

JOINT OWNERSHIP. One way to make sure property passes to an unmarried partner is to own the property jointly, with right of survivorship. If one joint tenant dies, their interest immediately ceases to exist and the remaining joint tenants own the entire property. This is also a good way to avoid probate.

BENEFICIARY DESIGNATIONS. Make sure to review the beneficiary designations on bank accounts, retirement funds, and life insurance to make sure your partner is named as the beneficiary (if that is what you want). Your partner will not have access to any of those accounts without a specific beneficiary designation.

DURABLE POWER OF ATTORNEY. This appoints one or more people to act for you on financial and legal matters in the event of your incapacity. Without it, if you become disabled or even unable to manage your affairs for a period of time, your finances could become disordered and your bills not paid, and this would place a greater burden on your partner. Your partner might have to go to court to seek the appointment of a guardian, which takes time and money, all of which can be avoided through a simple document.

HEALTH CARE POWER OF ATTORNEY. Similar to a Durable Power of Attorney, a Health Care Power of Attorney appoints an agent to make health care decisions for you when you can't do so for yourself, whether permanently or temporarily. Again, without this document in place, your partner might be shut out by other family members or forced to go to court to be appointed guardian. If it is important for all of your family members to be able to communicate with health care providers, a broad HIPAA release--named for the Health Insurance Portability and Accountability Act (HIPAA) of 1996--will permit medical personnel to share information with anyone and everyone you name, not limiting this function to your health care agent.

WILL. Your Will says who will get your property after your death. Your Will is important for two main reasons. First, if you have minor children, it permits you to name their guardians in the event you are not there to continue your parental role. Second, it allows you to pick your Personal Representative (formerly called an Executor) to take care of everything having to do with your estate, including distributing your possessions, paying your final bills, filing your final tax return, and closing out your accounts. It's best that you choose who serves in this role.

REVOCABLE LIVING TRUST. A Revocable Living Trust can be especially important for unmarried couples. It permits the person or people you name to manage your financial affairs for you as well as to avoid probate. You can name one or more people to serve as co-trustee with you so that you can work together on your finances. This allows them to seamlessly take over in the event of your incapacity.

We can help you determine the estate plan that is right for you and your partner. 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, whatever is most convenient for you.

How long does it take to resolve a personal injury case? Like you, we prefer cases to resolve quickly, but we will never settle a case before the full nature of the client's injuries are known.

How long does it take to settle a personal injury case? Each personal injury case is unique, and the length of time it takes to resolve a case varies. Like you, we prefer cases to resolve as quickly as possible. However, a competent lawyer will never settle a case before the full nature of the client’s injuries are known. This means that the client must have completed their medical treatment.

After completing your medical treatment, your lawyer will move forward with your case:

Step 1: Your lawyer will request your medical records from all treatment providers. Receiving the records may take anywhere from a couple weeks to a couple months from the date of the request, depending on the responsiveness of your medical providers.

Step 2: After receiving all of your medical records, your lawyer will prepare a demand package, which is a letter summarizing the facts of your case, the theory of liability, your injuries, and the amount of damages being requested.

Step 3: The demand package is sent with your medical records and other documents evidencing your damages to the insurance company. Unfortunately, the law does not require the insurance company to respond within a certain period of time, but it usually submits an offer within 30-60 days, depending on the insurance adjuster’s caseload and the complexity of the medical records.

Step 4: After receiving the insurance company’s response, your lawyer can advise you whether the case can be resolved.

If the insurance company’s offer is acceptable to you and your lawyer, the case can usually be settled quickly. The insurance company often sends a check within a few weeks of the settlement agreement, and your lawyer disperses the funds to you and all parties owed; or

If the insurance company’s offer is unacceptable to you and your lawyer, the case may be litigated, or if your case is under a certain value, there is a faster option called Mandatory Arbitration. Resolution is usually within 5 to 8 months. However, the decision is nonbinding. If either party is unhappy with the results, the arbitration decision can be appealed, and the case may still go to trial.

What factors can delay how long it will take to settle a case?

YOUR INJURIES NEEDS MEDICAL CARE THAT IS COMPLEX AND/OR LENGTHY IN DURATION. Your recovery is our priority, so we want to ensure that you receive all the medical care needed to recuperate from the physical and emotional impact of your injuries. The treatment from a serious injury can often be lengthy and ongoing. In order to establish and prove your medical treatment is reasonable, necessary, and related to your incident, you may need multiple doctors to validate and confirm the extent of the injuries through visits, tests, or even surgeries. Each of these appointments may take weeks to schedule, and afterward additional time for your lawyer to request and obtain your results. This can delay your case. However, from a legal standpoint, it is in your best interest not to act too soon and possibly underestimate the extent of your medical needs: past, present, and/or future.

MEDICAL PROVIDERS CAN CAUSE DELAYS. To properly evaluate a case, we need to obtain your records from your treating medical providers such as the hospital/emergency room, surgeon, or physical therapy/rehabilitation facility. Usually, medical providers respond in a reasonable amount of time. However, in some cases, it can take multiple attempts and several months to obtain your records. This can prolong our ability to move the case forward.

THE CLIENT CAN CAUSE DELAYS. Timely communication between you and your lawyer is important for swift and successful case completion. Sometimes, clients inadvertently delay their cases by not responding promptly to emails, phone calls, or letters from their lawyer. Although some items can move forward without a client’s feedback, most require input to continue moving forward. We understand that your time is valuable and priorities can shift, but to resolve your case successfully and in an expedient manner, it is important to respond to our information requests as quickly as possible.

If you or a family member or friend have been injured due to someone else's negligence, give us a call at 253.858.5434 to set up an appointment for a free initial consultation today.

We create comprehensive estate plans to help individuals safeguard their assets and plan for their families' futures.

Planning for your future is a critical element of maintaining financial security and keeping your affairs in order. We create comprehensive estate plans to help individuals safeguard their assets and plan for their future. Whether you need a simple Will, Durable Power of Attorney, or more complex estate plan, we can help. Our estate planning services are normally done on a flat fee basis, with fees beginning as low as $400 for a simple Will for a single individual. Other documents can be quoted on a flat fee basis based on each individual circumstance.

WILLS. A centerpiece of all estate plans is the creation and execution of a Will. In order to be validly executed, the person making the Will must have "testamentary capacity" (the ability to understand the size and nature of their estate and the ability to identify the "natural objects of their bounty") and must sign the Will in the presence of two competent witnesses. The witnesses must also sign the document. Wills allow individuals to pass their property on their death to beneficiaries in the manner of their choosing and avoids the default rules governing intestate succession in Washington. Wills can also be used to set up Trusts to preserve assets for minor or disabled beneficiaries, to help minimize estate taxes, and other tax liabilities.

REVOCABLE LIVING TRUSTS. Many people choose to use a Revocable Living Trust as their primary estate planning tool. With a Revocable Living Trust and a Pour Over Will, you can transfer your assets to your beneficiaries without probate and without court involvement in your estate’s affairs.

COMMUNITY PROPERTY AGREEMENTS. Community Property Agreements can be used in conjunction with a Will. These instruments generally provide for the passage of all community property from one spouse to another at death. Community Property Agreements can help ease the legal process surrounding the death of one spouse, allowing for the passage of assets without probate proceedings.

DURABLE POWERS OF ATTORNEY. The Durable Power of Attorney is another vital part of most estate plans. A DPOA allows the signer (“principal”) of the power of attorney to designate another person (the “attorney-in-fact”) to act on their behalf, should such a need arise, in both financial and health care matters. A Durable Power of Attorney can grant various different specific powers, either broad or more limited in scope, to the attorney-in-fact.

HEALTH CARE DIRECTIVES. Many individuals choose to include a health care directive in their comprehensive estate plan. Health care directives are authorized and governed under the Washington Natural Death Act. Health Care Directives allow individuals to document their desires for withholding or removal of treatment in case of terminal illness or permanent unconsciousness. These directives can include various details on when to withhold care or stop giving care in a terminal case.

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.

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.