It is important to consider the manner in which you leave life insurance, retirement money, and other significant assets to your children who are still minors.

Your children are your pride and joy. It’s no surprise that at some point or another, every parent becomes concerned about who will care for their children if one or both parents die or are incapacitated. From a financial perspective, many parents turn to life insurance in an effort to take care of their family in the event of death. While it is true that life insurance is a helpful financial tool to protect your loved ones, it is just as important to consider how to leave your assets to your minor children. Beyond this, you should also consider how to incorporate your retirement money (IRAs and 401(k)s), another common, significant asset into your overall estate plan.

When you purchase life insurance, you will name a beneficiary of the death benefits and retirement accounts. But, if you don’t have a system in place and your children are minors at the time they inherit these assets, the court has to appoint a guardian or a conservator (the title depends on state law, but the role of this person is to “watch over” a minor’s money). This process will require attorneys’ fees, court proceedings, supervision from the court, and will limit investment options—all costs and delays that will not help your children, but can cost them a significant percentage of their inheritance.

Another downside? Whatever’s left when the child becomes an adult (usually age 18, but may be 19 or 21 in some states) will be handed over, without any guidance. This can impact college financial aid opportunities and open up an opportunity for irresponsible spending.

HOW TO LEAVE ASSETS. There are several ways in which you can structure your life insurance policies, retirement accounts, and overall estate plan to benefit your minor children in the most streamlined way possible.

1. First, use a Trust to manage the money for the benefit of your children. This lets you designate someone you think will manage the assets well, rather than leaving it to the whims of the court. You will want to do this instead of naming minor children as beneficiaries.

2. Second, select and name a guardian to handle the day-to-day care for your children. This person can be different than the person managing the money, which can sometimes work well depending on the amounts involved and the different skill sets needed to manage money versus raise children.

3. Third, if you have a Revocable Living Trust, make sure you have properly funded the Trust and aligned your retirement assets with the plan. If you do not yet have a Trust, consider the benefits of one over Will-based planning. Both types of plans will allow you to designate how much and when your children will receive the money, but a Trust–based plan will allow you to do so without court involvement.

BENEFITS OF A TRUST. Generally, parents list a minor child as the secondary or contingent beneficiary on life insurance and retirement accounts after first naming the surviving spouse as a primary beneficiary. This may work, as long as everyone dies in the “right” order and at the “right” time. But it’s a gamble and providing structure through a Trust for these inheritances is a better option. Unlike guardianship or custodian accounts, where the proceeds must be handed over once the minor turns a certain age, you can specify at which age your child receives the assets. This allows you to designate how the money is to be used, so it will be available for the important life events, while protecting your children from reckless spending. Ultimately you have more control with a Trust, and your customized plan will provide the best protection for your family.

If you have any questions about how to leave assets to your minor children—whether it is a life insurance policy, a retirement account, or any other asset—contact us at 253.858.5434 today. We can explain the options available to your family, determine what tax implications will result, and advise you on the best structure that will protect your family’s needs.

Estate planning isn't just about legal issues - there are practical ones as well. You can save your loved ones some headaches by making your wishes known ahead of time.

Estate planning isn't just about legal issues--there are practical ones as well. After you die, many of the tasks and decisions your loved ones will have to handle usually aren't covered by basic estate planning documents. You can save them some headache by making your wishes known on such issues as:

* Who should be notified of your death?

* Do you want a funeral or a memorial ceremony? If so, what type? Who should attend? Do you want people to send flowers, or would you prefer donations to charity?

* Did you prepare a Will or a Revocable Living Trust? Where do you keep the original documents?

* Do you own a life insurance policy, pension, annuity, or retirement account? Where are the documents stored?

* Do you have bank accounts? Do you have a safe deposit box? Where are the records?

* Do you own stocks, bonds, or money in mutual funds? Where are the records?

* Do you own real estate? Where are the deeds?

Most people carry this information around in their heads and never discuss it with their family members in a comprehensive way. Their loved ones must do their best to sort it all out later.

AVOID UNNECESSARY LOSSES. Costly or painful losses can result from a failure to organize your affairs. Stocks, bonds, bank accounts, real estate, and insurance policy benefits may go unclaimed and be turned over to the state government. This happens surprisingly often. Each year, millions of dollars go into state treasuries because the rightful property owners couldn't be found. On a more personal level, relatives or friends may not be promptly informed of a death, and valuable pieces of family history may not be passed down to future generations. Fortunately, losses like these can be avoided with a little bit of planning, sorting, and organizing.

ORGANIZE YOUR INFORMATION. Making things easier for your family is not difficult, but it may be time-consuming. It's best to break the task into manageable sections and take it one step at a time. Start by thinking about some broad categories of information:

* funeral plans (arrangements and whom to notify)

* insurance policies

* Wills, Trusts, deeds, and other important documents

* pensions and retirement accounts

* bank, money market, and mutual fund accounts

* stocks and bonds

* items in safes, safe deposit boxes, and other locked or hidden places, and

* family history, including the location of photographs, heirlooms, and other irreplaceable items.

Then think about organizing this information in a way that will help your family handle your affairs after your death. You can structure the information any way you like--even some scribbled notes left in an accessible location are better than nothing--but if you have the time and energy for it, consider a more thorough approach. However you choose to organize your affairs, what's most important is that you create a clear, easily accessible and easy-to-find system that will light the way for your family and friends.

When you've got everything in order, be sure to store your information in a safe place. You might consider keeping everything in a fireproof metal box, file cabinet, or home safe. Also, be sure to discuss your new records with those closest to you. Your careful work won't help them unless they know where to find important papers when the time comes.

If you have estate planning questions or want to learn more about how we can be of service to you, your family, friends, neighbors, or coworkers, 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 starting a new business, the decision to form either a limited liability company (LLC) or a corporation depends on a number of factors.

If you're starting a new business, the decision to form either a limited liability company (LLC) or a corporation depends on the type of business you are creating, the possible tax consequences of forming the entity, and other considerations. Both types of entities have the significant legal advantage of helping to protect assets from creditors and providing an extra layer of protection against legal liability.

In general, the creation and management of an LLC are much easier and more flexible than that of a corporation. Still, there are advantages and disadvantages to both types of business structures.

EASE OF FORMING AN LLC. Creating an LLC is a much simpler process than creating a corporation and generally takes less paperwork. LLCs are governed by state law, so the process of forming an LLC depends on the state in which it is being filed. Most states require filing articles of organization with the Secretary of State and some states allow for them to be filled out online. A few states require an additional step of filing a public notice, often in local newspapers. Once these steps are completed, the LLC is officially formed.

Once an LLC is formed, it's good business practice to set out the roles and responsibilities of the members. The members are individuals with an ownership interest in the LLC. Most LLCs use an operating agreement to define these roles. Drafting an operating agreement is not necessary for an LLC to be valid but it is a prudent course of action. If no operating agreement is created, an LLC is governed by the default rules contained in state law. The operating agreement sets forth the rights and responsibilities of the members. It can define the business relationship and deal with issues of capital structure, the allocation of profits and losses, provisions for the buyout of a member, provisions in case of the death of a member, and other important business considerations.

TAX FLEXIBILITY OF AN LLC. The IRS does not view an LLC as a separate vehicle for tax purposes, which allows for greater flexibility. Members can choose how they are taxed. They can be treated as a sole proprietorship, a partnership, or a corporation. The most common tax option of an LLC is taxation similar to a sole proprietorship. A member has to pay taxes themselves on the profits of the LLC as opposed to the LLC paying the taxes. The profits and losses of an LLC are passed through the business to the owner. The owner then has to report the profits or losses on their own personal tax returns. The LLC itself does not pay any corporate tax. This method avoids double taxation, which is a drawback of corporations.

DISADVANTAGES OF AN LLC. Although an LLC does come with plenty of advantages, there are some disadvantages to consider. LLC members also have to pay a self-employment tax, which includes a 12.4% tax for Social Security and a 2.9% tax for Medicare.

There are other drawbacks to an LLC as well. The purpose of an LLC is to protect its members from any liability. If the company fails to meet its obligations, only the LLC can be a target for creditors, not the assets of the members. However, there are certain situations in which an LLC can be automatically dissolved, leaving members open to risk.

Automatic dissolution can be triggered if an LLC fails to report its filings on time, a death or withdrawal of any member occurs, unless succession provisions are outlined in the operating agreement, a change in the structure of the LLC, such as a merger, as well as any terms with expiration dates. In these situations, an LLC can continue doing business, but the liability structure of the members may alter, defeating the initial purpose of creating the LLC.

Prior to the passing of the Tax Cuts and Jobs Act in 2017, an LLC treated as a partnership for tax purposes could automatically be terminated due to tax reasons as well. The automatic termination was triggered if there was a transfer of 50% or more of an LLC’s total interest or profits within a 12-month period. This rule no longer applies from the tax year 2018 and beyond.

Another major disadvantage is the differences among states in the statutes that govern LLCs. This can lead to uncertainty for LLCs that operate in multiple states. The differences in rules and regulations can result in additional paperwork and inconsistent treatment across different jurisdictions.

ADVANTAGES OF A CORPORATION. Despite the ease of administration of an LLC, there are significant advantages to using a corporate legal structure. Two types of corporations can be formed: an S corporation and a C corporation. An S corporation is a pass-through entity, like an LLC, where the owners are taxed on profits and losses of the corporation. A C corporation is taxed at the corporate level, separately from its owners, through a corporate income tax. C corporations are the most common type of corporation.

C corporations have the advantage of allowing profits to remain with the corporation and paying them out as dividends to shareholders. Also, for businesses that eventually seek to issue stock to the public, a C corporation can easily issue shares to raise capital for further expansion of the business.

Corporations offer more flexibility when it comes to their excess profits. Whereas all income in an LLC flows through to the members, an S corporation is allowed to pass income and losses to its shareholders, who report taxes on an individual tax return at ordinary levels. As such, an S corporation does not have to pay a corporate tax, thereby saving money, as corporate taxes are higher than ordinary taxes. Shareholders can also receive tax-free dividends if certain regulations are met.

DISADVANTAGES OF CORPORATIONS. There are significant disadvantages to creating a corporation regarding the amount of complexity involved. It requires a great deal more paperwork, meeting many more guidelines, electing a board of directors, adopting bylaws, having annual meetings, and creating formal financial statements. They generally have more burdensome record-keeping requirements than LLCs.

There is also the issue of double taxation for corporations. This refers to taxes being paid twice on the same income. This is because corporations are considered separate legal entities from their shareholders. Thus, corporations pay taxes on their earnings, while their shareholders also pay taxes on any dividends they receive from the corporation.

THE BOTTOM LINE. Though similar in many ways, LLCs and corporations have quite a few distinctions that bring both advantages and disadvantages to each. As an individual starting your own business, it's important to understand all of the nuances involved and choose the right structure for your company.

If you are about to start your own business and need legal advice, 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.

Why it's important to reach out to an estate planning lawyer after you've bought a new house.

If you've recently bought a house, during the home buying process you worked with a lot of individuals - your realtor, the seller’s realtor, the title company, the loan officer, and the home inspector. Now that you have finalized the purchase of your house, there is one more advisor you need to call – your estate planning lawyer. It’s very important to not forget this step and reach out to an estate planning lawyer after buying a house. Why is this important?

ALIGNING YOUR OWNERSHIP WITH EXISTING ESTATE PLANNING. First, your lawyer can help you review the new documents associated with your home purchase in conjunction with your existing estate plan. This is to ensure that everything aligns and works towards your overall estate planning objectives. If your existing estate plan includes a Revocable Living Trust that owns all of your assets, it is crucial that your new home is titled in the name of the Trust and not in your name individually.

GENERAL REVIEW/UPDATE OF YOUR ESTATE PLAN. Since you have engaged in a new life changing event, now is the perfect time to review your existing estate plan. This is a great opportunity to make sure that the individuals you have appointed in the crucial roles of guardian, personal representative, trustee, power of attorney, etc. are still able to carry out those duties when the need arises. With the passage of time, these individuals may have moved away, died, or otherwise undergone a life change themselves that makes them a less than desirable candidate to act on your behalf.

While you are reviewing your estate plan, it is also important that you review the dispositive language. Do you still want to have your assets divided the same way? Have the needs of your beneficiaries changed over the years? To ensure that you are protecting and providing for your beneficiaries, you need to make sure that the provisions are set up for the best individualized protection.

DIFFERENT STATE FACTORS. Lastly, if the purchase of your new home is in a new state, you will definitely want to visit an estate planning lawyer. By changing states, the documents you previously have prepared may not adequately protect you and your family. Each state has unique laws regarding trusts and estates, you will need to make sure that any documents you are currently relying on are enforceable in your new state. Unenforceable or not-optimized documents can be just as bad as having no estate planning documents at all.

GIVE US A CALL. Buying a new home is a great new adventure. We are here to help. Contact us or give us a call at 253.858.5434 so we can make sure that you are embarking on this new chapter in your life fully protected.

Here are some reasons why it's important to follow your doctor's instructions to the letter after you've been injured in an auto collision.

You may think that the hardest part of being in an auto collision is the collision itself, but many of our personal injury clients would disagree with you. The long road to recovery can be frustrating, time-consuming, and full of missteps, making it often more difficult than the actual car crash. Unfortunately, this often leads to patients ignoring their doctor’s recommendations or skipping out on medical care entirely, which threatens their health and their personal injury claim. For those of our clients who are pursuing a personal injury claim, here are some reasons why it's important to follow your doctor's instructions to the letter:

IMPROVE YOUR CHANCES OF HEALING. First, your goal is to heal completely from your injury and return to life like it was before the collision. Listening to your doctor is the best way to achieve that goal. Even if you think your doctor is overly cautious, remember that they are the expert. They have likely seen many injuries like yours before, and they know what it takes to make a treatment plan that produces results.

PREVENT COMPLICATIONS. Injuries can be extremely complex, and complications may arise long after the initial incident that caused the injuries. For example, if you’re following your treatment plan and get frustrated with your slow progress, you might stop listening to your doctor. You return to work without medical clearance and go back to your fast-paced life. Your injury isn’t fully healed, and you push yourself so hard that you actually hurt it worse than it was in the first place. Now, not only do you have to go back through treatment, but you have also lost all the progress you made initially. You can avoid this waste of time and money by sticking to your doctor’s recommendations from the very start.

ADJUST YOUR TREATMENT PLAN TO YOUR PROGRESS. Injuries are often unpredictable. While one person might improve by leaps and bounds in one month, another patient might experience multiple setbacks in that same month. By staying in close contact with your doctor and reporting all changes in your symptoms, you give them the opportunity to change your treatment plan accordingly. A personalized treatment plan gives you the best chance at success and allows you to progress at your own speed.

DOCUMENT YOUR PROGRESS FOR PERSONAL INJURY CLAIM PURPOSES. You may be planning on pursuing a personal injury claim against the party who caused your injuries. If so, plan on a battle with their insurance company. The at-fault driver's insurance company will do whatever they can to avoid paying you a full and fair settlement. The best way to combat this is to provide substantial evidence of your injuries and how they have affected your life.

When you skip doctor’s appointments or ignore treatment recommendations, you are giving a gift to the insurance company. They will jump on this and use it as evidence that your injury isn’t as bad as you claim or that you are simply trying to milk the insurance company for more money. The result? You get a smaller settlement and are left covering the rest of your expenses on your own.

Your lawyer can tell you how important it is to follow your doctor’s treatment plan and document all successes, setbacks, and changes in your symptoms. This makes it easier to prove the extent of your injuries and their effect on your life. In turn, it is easier for your lawyer to fight for a settlement that covers your actual losses.

In this case, what is best for your injury and what is best for your injury claim are the very same thing. The clear choice is to listen to your doctor, participate in treatment efforts in good faith, and be open to changes in your plans.

DISCUSS YOUR CLAIM WITH YOUR LAWYER. If you’ve suffered injuries because of someone else’s negligence, you shouldn’t be left holding the bill for their mistakes. That’s where we come in. We help personal injury victims fight for the compensation they are owed. Learn more about your options by calling us at 253.858.5434 to set up an appointment today.

We get it, reviewing and updating your estate planning documents isn't fun or even on the top of your mind. But here are 12 reasons when and why you should update your estate plan.

We get it, reviewing and updating your estate planning documents isn’t exactly fun or even on the top of your mind for many of us. While looking ahead to the day of our demise can be sobering, planning ahead for our inevitable death will actually help us focus on the here and now. Writing a Will and working with a lawyer to craft an estate plan is only step one of the processes. Throughout your life, you should be mindful of reviewing and updating your estate plan with your lawyer at logical intervals and checkpoints. This way, you can ensure any changes in your life, and your choices are noted and legalized. While the following list is by no means exhaustive, here are 12 reasons when and why you should update your estate planning documents.

1. UPDATE YOUR ESTATE PLANNING DOCUMENTS WHEN THERE ARE CHANGES IN YOUR BENEFICIARIES.

* One of your beneficiaries passes away. This is one of the more obvious reasons that it’s time to revisit your estate plan. If the person you have designated to receive your assets has died, you will need to update your estate planning documents to choose one or more new beneficiaries. Don’t ever assume that someone who seems obvious to you – such as a spouse or child – will automatically become your new beneficiary. Laws are unique to each state, and the only way to ensure that your personal preferences are adhered to is to put them in writing with a legalized document.

* You change your mind. You can change your mind an endless number of times when it comes to who will receive your assets at the time of your death. While redoing the paperwork on a frequent basis will be expensive, it’s a good idea to review your estate plan and (re)consider your choices anytime you change your mind about a major component of the plan. If you’re sure it’s time to designate someone new as a beneficiary or to remove someone from your Will, be sure to get that in writing.

* Absolutely update your estate planning documents if your relationship status changes. Any time your marital status changes you will need to make changes to your estate planning documents. Marriage or divorce are the most obvious changes, but becoming legally separated or entering into a long-term committed relationship and owning property together bring their own legal decisions that will need to be made as well as ensuring that you have the appropriate protections. This is especially important because the law does not necessarily act in the way you might expect when it comes to probate. For example, you may see yourself as a common law married, but if you live here in Washington you need to know that Washington does not recognize common law marriage. Make sure your wishes are legalized in writing by updating the correct estate planning documents.

* Your beneficiary’s status has changed. Is your beneficiary still willing and able to take on the responsibilities that come with your estate? Has that person become incapacitated in any way? Do they require special care? If so, it’s time to revisit your estate plan with a lawyer and possibly make some new decisions on how to divide up your estate when the time comes.

2. UPDATE YOUR ESTATE PLAN WHEN A CHILD IS BORN OR ADOPTED. Whether you have a biological child or adopt a child, any time you add a child to your family, it’s time to review your estate plan. This is to ensure that your children are best cared for in the event of your untimely demise and to ensure that your wishes are carried out when it comes time to disburse your assets to your heirs.

Also, if you get married and your spouse has children from a previous relationship, you will need to make updates to your estate plan. Any decisions or preferences you have for how your estate will be divided up among heirs, and for identifying who those heirs will be, must be addressed. It is not uncommon for people to marry and wish for personal effects to be bequeathed to their biological/adopted children and not stepchildren so that the items stay in the family. There are ways that you can honor your stepchildren as well, but that’s exactly why the paperwork is important.

Any minor children always require special consideration when it comes to estate planning. They will need guardianship, living expenses, and possibly money for their education to be considered. But if you planned your estate while your children were minors, and they come of age, it’s time to update your estate plan. The laws about heirs and beneficiaries change when someone becomes an adult.

3. UPDATE YOUR ESTATE PLAN IF YOU GET MARRED, DIVORCED, OR SEPARATE.

* Consult a lawyer before the change, if possible. Any change in marital status should trigger an automatic review of your estate plan. If at all possible, schedule this review prior to the change in your marital status. To delay that review until after you are married, divorced, or separated could have important legal ramifications about what you are obligated to leave a spouse or ex spouse after you die.

* Make sure to update if you need to separate your assets from an ex spouse. If you get divorced or are in the process of getting divorced, you’ll want to do more than just decide who gets the house or the car. Reviewing your retirement assets, your business, and even your debt is crucial to make sure that you each get to keep what is yours.

* You may not have to change anything. Depending on your financial situation, you may have to change everything about your estate plan, nothing about your estate plan, or somewhere in between. This is where the right lawyer comes in very handy.

4. REVIEW YOUR ESTATE PLAN WHEN YOU MOVE TO ANOTHER STATE. Tax laws vary from state to state, and moving can trigger a change in tax status. Any time you move to a new state, you’ll want to schedule a meeting with your lawyer to see what, if anything, you might need to adjust. Checking in with your accountant is a good idea as well.

5. REVISIT YOUR ESTATE PLAN IF YOU INHERIT A SUBSTANTIAL GIFT OR PROPERTY. If you are on the receiving end of someone else’s estate plan, you will want to be sure to include your new asset in your own plan.

* Don’t forget the taxes. There are always taxes to be paid and your best bet to minimize the pain from Uncle Sam is to ensure that you consult your estate attorney and accountant sooner rather than later.

* Establish a Trust. If you don’t already have one, consider establishing a Trust to hold assets on behalf of a beneficiary. The Trust will enable beneficiaries to access the assets much faster than if you didn’t have a Will.

6. REVIEW YOUR ESTATE PLAN TO DEAL WITH DEBT. Most of us have debt in some form of another. Some folks may have upwards of six figures of student loan debt that can take decades to pay off. Make sure that your loved ones are able to inherit your assets with as little legal red tape as possible by adjusting your estate plan to account for how certain bills will need to be paid.

If you have more debts than assets, first, do not worry or feel bad because you are not alone. Second, this is an excellent opportunity to ensure that you have your lawyer and accountant review your estate plan to minimize the pain that will be passed on to your heirs.

The tax rules and other issues surrounding debt at the time of death can be tricky and there are lots of exceptions to every rule. Be sure to have a lawyer on your side to help you navigate how to set up your estate plan to account for your debt in as straightforward way as possible.

7. UPDATE YOUR ESTATE PLAN IF YOUR CHILD GETS MARRIED OR DIVORCED. That’s right, estate planning relating to marriage is not just for you. It also applies to any adult children you have should their marital status change. Why? Because they are, presumably, among your beneficiaries, only now there is a spouse who is part of the family, plus any children of that spouse. You might not be concerned about who argues over what once you are gone, but if you want to make the distribution of your estate as seamless as possible for your beneficiaries, review your estate plan and include provisions for the new relatives. Your children may also have children who fight over your assets once you’re gone. This will be particularly tricky if your children pass away as well and your estate plan has not yet been updated.

8. REVIEW YOUR ESTATE PLAN IF YOU OWN A BUSINESS. Do you have a business succession plan? Your estate plan should include your succession plan for the business. Even if your business is in debt, as most businesses are at some point, you will need to have the proper legal documents drawn up to designate who will have ownership and control over your business once you are gone. You will need to specify who will own and run the business. Otherwise, your life’s work could fall into the wrong hands.

9. UPDATE YOUR ESTATE PLAN IF YOU DON'T HAVE A LIVING WILL. If you don’t already have a living will, you should. A living will is crucial should you become incapacitated. If you do have a living will, reviewing it periodically is important. Things change. You may have different interests and preferences now that some time has passed. It’s a good idea to review your living will about every three to five years.

10. UPDATE IF YOU NEED TO CHANGE YOUR POWER OF ATTORNEY. If your power of attorney has or needs to change, your estate plan needs to change, too. Make sure your wishes are accurate. You can revoke the power of attorney and appoint someone new at any time. This should be done as part of your estate plan to ensure proper legality. You will also want to review both a durable power of attorney, which will remain in place should you become incapacitated, and healthcare power of attorney, which allows someone the legal right to make decisions for your medical care specifically should you be unable to do so yourself.

11. REVIEW YOUR ESTATE PLAN IF YOU PURCHASE OR SELL ASSETS. Assets change throughout our lives and careers. You might buy and sell a property. Open and close a business. Start a nonprofit. Buy stocks and fund your retirement accounts. As you make these changes to your financial portfolio, there are taxes to be paid. If you move from one state to another, the rules change. Review your estate plan to see if adding those new assets to a trust will benefit you.

12. AN IN-DEPTH REVIEW IS NEEDED IF THERE HAS BEEN CONSIDERABLE PASSAGE OF TIME. One of the biggest and most important reasons to update your estate plan documents is also the simplest: because time has passed. Things change. People change. We change our minds, and we change our preferences. The laws change. Technology changes. We buy things, we sell things, we acquire things. Don’t let the passage of time stop you from making deliberate, intentional decisions about your hard-earned assets.

Barring a major life event, we recommend reviewing your estate plan every three to five years, on average. This is enough of a passage of time to likely have some items in need of updating, but not so frequent that you will waste time or money in meeting with your lawyer. You are, of course, welcome and encouraged to meet with your lawyer whenever you like. If three to five years seems too frequent and you want to only review your estate plan once every ten years, that is perfectly fine too. Find your comfort level and go with that. Seek out your lawyer’s advice as well, as they may have a recommendation based on the specifics of your plan.

THE BOTTOM LINE. Above all, a few key things to remember are that your comfort level matters, big life changes should trigger a review of your estate plan, and keep good, solid professionals like a lawyer or accountant in your corner at all times. When in doubt, review your estate plan. The point of the plan is to give you peace of mind, so whatever you need to do to ensure that it is up to date is what you should do. Just make sure to remember that estate planning does not fall under the header of “set it and forget it.” Whatever intervals or opportunities you choose as a time to review your estate plan, make sure that you do create a schedule that suits your needs.

Be mindful of major life changes. Don’t be afraid to look ahead at the inevitable. Death comes to us all, and the most empowering thing we can do is to look forward with confidence. If our law firm can be of service to you, your family, friends, neighbors, or coworkers, 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 own cryptocurrency, your estate planning needs are more complicated than you realize.

If you own cryptocurrency, your estate planning needs are more complicated than you realize. By now you have heard plenty of stories about individuals getting rich with investments in cryptocurrency. With Bitcoin, for example (currently valued at $38,922.57 per Bitcoin as of this morning), it seems that many millions of people believe that these digital assets are valuable. Whether or not its current valuation is a bubble, the true value of cryptocurrency is a topic that will likely be debated for some time. Aside from the value of a Bitcoin, the technology that underlies Bitcoin, the “blockchain,” is also valuable and it promises to have many useful applications outside of an exchange cryptocurrency. Indeed, it's very likely that one day blockchain technology will revolutionize the way we perform contracts, record deeds, keep medical records, and, most immediately, pay for goods. This is because the blockchain distributed ledger promises security, transparency, and cost savings for all types of transactions.

HOW DOES BITCOIN WORK? Bitcoin operates on a shared public ledger technology called the “blockchain.” The easiest way to visualize the blockchain is to picture a spreadsheet that is duplicated thousands of times across a network of computers, where the network of computers is programed to regularly update each copy of the spreadsheet so that they are identical. This creates a redundant array of copies of the ledger for backup and verification of the transactions. Each transaction creates a new proposed entry in the ledger, which is verified by the network of computers and then added to the ledger. Each entry in the ledger is cryptographically verified and signed so that fraud is prevented.

An individual holds Bitcoin by storing it in a digital "wallet," which is assigned a Bitcoin address. A Bitcoin address is similar to an email address in that it is used as a destination to send Bitcoin. The wallet is secured by the use of a 64-digit private key, which is used to sign every transaction made by that particular wallet and is kept secret by the user.

CHALLENGES FOR ESTATE PLANNING. Bitcoin’s anonymous design creates challenges for estate planning because (1) there is no personally identifiable information associated with your Bitcoin; (2) Bitcoin is a virtual asset that may not be readily identifiable to your heirs; and (3) all Bitcoin transactions require the individual’s private key.

A Bitcoin wallet has a public address and a private key. A Bitcoin owner does not put their name or SSN on the wallet and there is no certificate of title, deed, or account statement that proves your ownership of the Bitcoin. In a typical estate plan with a Revocable Living Trust, for example, a person would transfer an asset into their Trust, thereby allowing their Trustee to control the asset after the Trustor’s death. This cannot be done with a Bitcoin wallet.

Further complicating the matter, Bitcoin is a virtual asset that can be stored on a USB thumb drive, a phone, a hard drive, or anything that is capable of storing data. This makes it likely that your heirs will overlook your Bitcoin assets because they will not know what they are looking at.

Lastly, and perhaps most importantly, the only way that transactions of Bitcoin can occur is through the use of the owner’s private key. This key is saved in your Bitcoin wallet and it is the “golden ticket” that allows someone to spend your Bitcoin. This presents a two-part challenge. First, you will need to keep your private key absolutely secure while you are alive, while also providing a method for your heirs to learn of the private key once you have died. Second, if the private key is lost there is no way to recover it and all the Bitcoin will be lost.

This last point is important because it could be potentially devastating to your estate plan. With generally all other assets there is a third party holding the asset that can be subject to Court jurisdiction. So, in the event an asset is left out of a Trust the mistake can be fixed relatively easily, but it means getting the Court involved. Not the ideal solution, but it is not catastrophic either. However, this option will not be available in the case of Bitcoin because no court order in the world is going to be able to recover your private key. The Bitcoin will be lost.

The key to passing on your Bitcoin in accordance with your estate plan is make sure that your estate plan provides for disclosure of your Bitcoin assets and provides for a secure method of transfer of the private key to your heirs. The solution may be as simple as a detailed letter of instruction to your Personal Representative or Trustee, which is placed in a secure location along with your original estate planning documents, or it may involve setting up a mechanical “deadman” switch that transfers your Bitcoin upon your failure to check in. The important thing is to work with your lawyer to implement a solution that works for you.

If you have estate planning questions or if we can be of service to you, your family, friends, neighbors, or coworkers, 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.

Every personal injury case is unique, but there are some common litigation landmarks you can expect to encounter once you make the decision to file a personal injury lawsuit.

Every personal injury case is unique, but there are common litigation landmarks you can expect to encounter once you make the decision to file a personal injury lawsuit.

HIRING A LAWYER. At the heart of any personal injury case is, of course, an injury of some kind. However uncertain the defendant's liability or the extent of the plaintiff's losses might be, no case will make it far without some proof of the plaintiff's injury. If the plaintiff's losses ("damages" in legalese) appear to be more than the small claims court limit (usually around $5,000 to $10,000, depending on the state), most plaintiffs will talk with a lawyer. If, after the initial consultation, it appears that the plaintiff might have a case, the lawyer may agree to conduct an exploratory investigation, including as to whether or not the defendant has applicable insurance and/or sufficient assets to cover any settlement or judgment. If the consultation and investigation lead the lawyer to conclude that the case is viable, a fee agreement will be signed and the attorney-client relationship will be official.

FILING AND SERVING THE COMPLAINT. After establishing that a legitimate case exists, the plaintiff's lawyer will file a personal injury complaint in the proper court. The complaint is the first official document in the case, laying out in very broad detail what the plaintiff is alleging (what the defendant did, how the plaintiff was harmed, etc.). After the complaint is filed, the plaintiff's lawyer will have a month or more to locate the defendant and "serve" the complaint on them. Serving the complaint basically means physically delivering the complaint to the defendant in a way that can be verified, ensuring the defendant cannot later claim to not know about the lawsuit. Along with the complaint, the service papers will tell the defendant the date by which theye must "appear" in court.

THE DEFENDANT HIRE A LAWYER. If insurance applies, the defendant must notify the insurance company as soon as they know about the lawsuit (which is a strict requirement in insurance policies). The insurance company will then appoint and pay for a lawyer. Defense attorneys work at an hourly rate, not under a contingency fee agreement, so if the defendant can afford to pay out-of-pocket, a "losing" case that's headed for early settlement is not a deterrent to the attorney, who is getting paid either way.

PRETRIAL AND DISCOVERY. In the pretrial process, both sides will ask each other for evidence and witness information in a phase called "discovery." As discovery proceeds, both sides will begin to schedule depositions of the opposing party and witnesses, i.e. question-and-answer sessions under oath.

This process of discovery and intermittent court appearances can take months (even a year or more), with the trial date frequently being pushed back. Eventually, once discovery has concluded, the defendant may ask the judge to throw out the case on "summary judgment," arguing that the plaintiff cannot possibly win at trial (these motions lose more often than not).

As the case moves closer to trial, the parties will significantly ramp up their efforts as they engage in mandatory settlement conferences, make motions to determine what evidence will be allowed at trial, select a jury, etc.

TRIAL. Finally, the trial will begin and, for a typical personal injury case, last at least several days. At trial, the judge or jury will determine if the defendant is at fault for the collision or other incident and for the plaintiff's losses, and if so, how much the defendant is required to pay out in damages. After trial, either party can initiate an appeals process that can last from several months to several years. After the appeals process has been exhausted, a losing defendant will be required to pay the damages established at trial or on appeal.

SETTLEMENT IS STILL THE MOST LIKELY OUTCOME. Most personal injury cases settle before trial. At any point in the process described above, the parties can settle and end the case, even before the complaint is filed.

If you're thinking about taking a personal injury case to court, it might be time to discuss your situation (and your best course of action) with a lawyer. Give us a call at 253.858.5434 to set up an appointment for a free initial consultation today.

There are many reasons to review and update your Will and other estate planning documents.

Once they make a Will, many people will file it away or leave a copy with their lawyer, and forget about it. However, there are many reasons to review and update your Will and other estate planning documents. For instance, let's say you've found the love of your life and want to make sure they are included in your estate plan, either before or after marriage. Now is the time to update your Will. Had a baby or adopted a child? Now is the time to update your Will. Are you going through a divorce with the former love of your life? Now is the time to update your Will. Did you just come into a whole lot of cash or other assets? Now is the time to review and possibly change your Will. Have you started a new business, either on your own or with a partner or two? Now is the time to review your Will and prepare a succession plan for the business. While the reasons may be endless, here are a few more possible life changes that may prompt you to change your estate plan.

____ The individuals you have named are deceased.

____ New people should be named in your Will (e.g. birth, adoption).

____ Divorce or marriage.

____ New state laws. You need to periodically check to see whether your state has enacted new laws that impact your estate planning documents. More importantly, if you move to a different state, don't assume that your Will made in your previous state conforms to the requirements of your new state. Each state has its own legal requirements for making a Will.

____ Change in guardians, personal representatives, or trustees.

____ Children reach the age of majority.

____ A substantial increase or decrease in the value of your estate.

____ The acquisition or disposition of a significant asset.

____ You should see a lawyer about reviewing and updating your estate plans prior to reaching 72 years old if you have an IRA, 401(k), or other qualified plan that requires you to begin to take distributions at age 72. The beneficiary that you designated will have an irrevocable impact on both your and your beneficiary's required distributions.

____ The passage of time is reason enough. You should review your Will and estate planning documents every three to five years.

If you have an estate plan that needs to be reviewed, or if you don't have one yet and realize it's time to create one, 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 first steps in opening a new business is forming the legal entity that will be doing business - a partnership, a limited partnership, an LLC, or a corporation.

For many people, starting a small business is living out a dream — to become an entrepreneur. To become one's own boss. Starting a small business is an admirable goal. However, you must act carefully, especially since it often requires a very significant investment of resources. It is important to take into consideration both the many financial issues and the legal issues. Starting a business on the right legal footing could be critical to its future.

If you are starting a small business in Washington or Idaho, we can help. You need to address many legal issues that face start-up businesses. We can advise you on your new business's legal organization. We can help you by preparing contracts and agreements so that your transactions go smoothly.

One of the first steps to opening a business is forming the legal entity that will be doing business. The best type of business organization for your company will depend on your goals and circumstances. Many businesses start as sole proprietorships or general partnerships. Sole proprietorships are the most common type of small business. Sole proprietorships and general partnerships do not have to register with the state Secretary of State. Neither are formal business entities. They are not taxable for federal purposes; the proprietor or partner simply reflects the business’s income or loss on their personal income tax returns. While relatively simple and flexible, sole proprietorships and general partnerships have many disadvantages, chief among them that the sole proprietors and partners are personally liable for any debts or any legal liability that their business might face.

Small businesses may create a more formal structure to conduct business. These business organizations have advantages over sole proprietorships and general partnerships. By creating a formal business organization, the owner can still reflect the business income and losses on their personal tax return but can generally be protected from personal responsibility for the business’s debts and other liabilities. A formal structure requires certain filings with the Secretary of State, which we can help you with.

Some of the different types of business structures that you may consider are:

LIMITED PARTNERSHIP (LP): In a limited partnership, there are two different classes of partners: General partners and limited partners. Like in a general partnership, general partners have unlimited liability for the company's debts. However, there are also limited partners, who are not liable. Limited partners have less control of the company than general partners. The circumstances in which a limited partnership is the best option are narrow but may occur if one or more partners is putting in significant capital but not taking a role in managing the company.

LIMITED LIABILITY PARTNERSHIP (LLP): In an LLP, the partners share management of the company, with all partners on the same level, unlike the tiers in an LP. However, the partners will not be personally liable for any debt, under most circumstances.

LLPs tend to be attractive options for firms of professionals, like law firms, architects, and accounting firms.

LIMITED LIABILITY COMPANY (LLC): Despite its name, in Washington and Idaho, an LLC can actually have just one owner/member. An LLC is governed by an operating agreement that sets out the specific agreement of the members and establishes procedures for making future business decisions. We can help you form your LLC by filing the appropriate documents with the state government and drafting the operating agreement that embodies the agreement of the members with one another.

CORPORATION: Corporations with a small number of shareholders, or “closely held corporations” are sometimes a good option for beginning a small business. We can advise you if your particular circumstances merit forming a closely held corporation.

One of the key elements of preparation for opening your business is being ready to actually conduct transactions. There are many agreements you will need to make and will need to make many more throughout the course of your business: agreements with vendors, suppliers, landlords, clients, customers, and others. We can advise and negotiate on many important contracts to help make sure you're getting off on the right foot. We can also help you draft agreements for use throughout the course of business.

Opening your own business is an exciting time, but there's significant risk involved. Having a lawyer on your side can help you understand the risks and make informed decisions. We have over 25 years' experience in assisting entrepreneurs opening their own businesses. Call us today at 253.858.5434 to set up a consultation.

If you've been in an auto collision and are in the process of filing a personal injury claim, you need to take care with your social media accounts. Problems arise when too much gets shared online.

For most of us, social media is a big part of our lives. We share posts and photos on Facebook and Instagram to stay connected with friends and family. When something notable happens to us, good or bad, we share it. But if you've been in an auto collision and are in the process of filing a personal injury claim, you must take care with your social media accounts. In our experience, we’ve seen all kinds of problems arise when too much gets shared online. We don’t want this to happen to you. So, we’ve come up with some social media rules to follow while your personal injury claim is pending.

ADJUST YOUR PRIVACY SETTINGS (BUT KNOW THAT NOTHING IS EVER REALLY PRIVATE). Please understand that nothing you share online is ever going to be private. Even so, you should still take steps to control what you can. This is a good opportunity to review your social media privacy settings. Here are some privacy settings we recommend you make on Facebook (all of these can be changed by going into Settings – Privacy):

* Who can see your future posts? – Select “Friends” (or use “Friends Except” to make exclusions)

* Review all your posts and things you’re tagged in – Enable

* Limit the audience for posts you’ve shared with friends of friends or Public? – Limit Past Posts (if you’re comfortable doing so)

* Who can send you friends requests? – Select “Friends of Friends”

* Who can see your friends lists? – Select “Only Me”

* Who can look up your email? – Select “Friends” or “Only Me”

* Who can look up your phone? – Select “Friends” or “Only Me”

* Do you want search engines outside of Facebook to link to your profile? – Select “No”

For each social media platform you use, take a few minutes and go into your privacy settings, buttoning down as much as you’re able.

RESIST THE IMMEDIATE TEMPTATION TO POST ABOUT YOUR COLLISION. Consider you make the following Facebook post in the moments after an auto collision:

“I was just in an accident, but don’t worry – I’m OK! I guess the errands will have to wait until tomorrow. Can’t wait to get home and unwind.”

Often, we get an immediate urge to let friends know when something upsetting has happened. We also want to share our relief at coming through alive. But here’s why you should avoid making that post: the insurance adjustor is totally going to use it against you.

That seemingly harmless Facebook update is pure gold in the hands of the adjustor. First, you stated that you’re “OK” even though you might not have realized the extent of your injuries. Also, your statement about wanting to go home and resume errands the next day could be taken to discredit your claim. There are many important things to do after a car accident. Posting about it on social media is not one of them.

AVOID CREATING NEW POSTS WHILE YOUR LAWSUIT IS ACTIVE. Many of our clients are surprised when we caution them about posting on social media. The truth is social media is accessible, which makes it easy for insurance adjustors and defense attorneys to view. If they can find a way to use what you’ve shared against you, you can bet that they will.

Imagine you’re an insurance adjustor. You locate the following social media posts of a personal injury claimant named John. How might you frame these posts to discredit him?

* A picture of John at a family picnic, a week after his car crash. He’s holding his toddler granddaughter, smiling.

* A post where John wishes his wife a happy anniversary and says “I hope to get us to Mexico to celebrate soon!”

* A friend posts on John’s timeline, asking how he’s doing since the collision. John replies, “All good!”

Now, these posts do not disprove that John is injured. He might have been on heavy medication during that family picnic and in bed the rest of the day. John might be dreaming of Mexico, even though the reality is he’s not going anytime soon. Maybe John is still struggling with injuries, but is trying to stay positive and doesn’t want to worry his friend. But posts and pictures can (and will) be taken out of context.

When you’ve filed a personal injury claim, avoid posting anything on social media. You can’t predict how your posts or pictures can be used against you. Nothing you post on social media will benefit your case.

ENCOURAGE FRIENDS AND FAMILY TO AVOID POSTING ABOUT YOU. When you call up your friends and family to tell them about your injuries, encourage them to keep quiet, too. You do not want your mom posting about your collision or saying that you’ll be “using a good lawyer to go after that jerk!” This is another reason why you want to make sure you can review all photos and posts made on your timeline. Finally, use good judgment with your public activities during this critical time. As much as you want to muscle through and go to that Seahawks game you already paid for – maybe it’s not worth it.

DON’T PRIVATE MESSAGE OTHERS ABOUT YOUR CASE. OK, you think – I won’t post any status updates. I’ll just jump on messenger and let my friends know what’s going on real quick with my legal situation. Here again, we’re going to caution you. Anything you share online, even private messenger, isn’t 100% private. In some cases, courts have ordered plaintiffs to hand over their social media user names and passwords. While this is an extreme example, it’s best to avoid discussing your case online at all.

ASK YOUR LAWYER FOR SPECIFIC ADVICE. We get it. There may be situations where it’s impossible for you to avoid social media. Maybe you’re social media influencer or YouTuber with followers in the hundreds of thousands. Or you may have other work-related reasons to continue posts or online activity. This is where your lawyer comes in. Ask them for how to navigate your life online during this time.

CONSIDER TAKING A SOCIAL MEDIA HIATUS. The best way to make sure your social media doesn’t impact your personal injury claim? Stay off of it until your case settles! Use the time to focus on your physical and mental health as you recover. Have a friend over for coffee and to catch up on how you’re doing in person. Buy yourself a journal so you can chronical your feelings on paper – and not on Facebook.

If you or a friend, family member, neighbor, coworker have been injured in an auto collision, we have 20+ years of representing injured people and their survivors. Give us a call at 253.858.5434 to make an appointment for a free initial consultation today.

Most people put off estate planning. Let's face it, it ain't fun. But the most important step in making sure your affairs are in order is to have basic estate planning documents in place.

Most people put off estate planning. Let’s face it, you have to pay a lawyer and you have to consider death and a bunch of other unpleasant scenarios. Personally, there are a whole lot of other things I would rather do.

Most often people finally do their estate planning and draft a Will when they have to, which is often after they have children, get married, buy a house, have a significant business, or their spouse has badgered them into it.

Remember, the most important step in making sure your affairs are in order is to have the basic estate documents in place. They can include a Will, a Durable Power of Attorney for finances, a Health Care Power of Attorney, and a Directive to Physicians (commonly called a "Living Will"). In Washington and Idaho, which are both community property states, this can also include a Community Property Survivorship Agreement for married couples. In addition, you should review your assets and how they are titled. You should review your insurance and ensure you understand where and how your property will go. You should consider estate taxes and make sure they are minimized.

Estate planning arranges your affairs so your property will be transferred smoothly and properly when the time comes. It ensures you are in control and protects your spouse and your children. It maximizes your assets and minimizes the cost.

So, how often should your estate plan be reviewed? If nothing sudden or significant has happened such as the birth or adoption of a child, divorce, marriage, death of a family member, change in jobs, or change in your balance sheet or assets, then a good benchmark for reviewing your estate plan is every 3 or 4 years.

By “reviewing your estate plan,” I mean to sit down with your lawyer and walk through your goals and objectives in light of your current situation. Analyze whether your current documents achieve those goals. Determine whether your property goes where intended and your insurance is in place to protect your loved ones. Ensure the titles on your assets and the beneficiaries are optimized. You may find that you need to change some things like updating the Personal Representative or the guardians, changing the order of the Trustees, changing titles to assets, naming beneficiaries, implementing tax planning to minimize estate taxes, or taking steps to avoid probate.

If you have questions about creating an estate plan or reviewing and updating an existing 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.

Recent Changes to the Washington Long-Term Care Trust Act/WA Cares Fund

For our business clients - On January 27, Governor Inslee signed two bills passed by the Legislature making key improvements to the WA Cares Fund. These reforms will address coverage gaps and delay program implementation by 18 months. Changes include:

* Workers near retirement (born before 1968) will be able to qualify for partial benefits on a pro-rated basis.

* Workers who live out of state and work in Washington, military spouses, workers on non-immigrant visas, and certain veterans with disabilities will be able to opt out of the program if they choose.

* Workers will begin contributing to the fund in July 2023. Employers will refund any premiums collected in 2022 so far.

Most immediately, premium collection for WA Cares won’t begin until July 2023. The Employment Security Department (ESD) won’t accept any WA Cares premium payments for the first quarter of 2022.

Newly updated information and guidance is available on the WA Cares website. For now, employers should:

* Stop withholding WA Cares premiums from employee earnings.

* Reimburse employees for WA Cares premiums within 120 days of the date premiums were collected.

* Continue to maintain copies of exemption approval letters for workers who’ve provided them.

If you're a small business owner with employees and have questions about these recent changes to the Washington Long-Term Care Trust Act, give us a call at 253.858.5434.

Personal injury lawsuits exist so that plaintiffs can hold negligent parties accountable and get the compensation they deserve and need.

When you suffer an injury in an auto collision that someone else caused, you could be left with massive medical bills, lost wages, and other expenses that shouldn’t be your responsibility. The change to your life could range from a mere inconvenience to something you’re not sure you could crawl out from. Either way, that’s why personal injury lawsuits exist: You, the plaintiff, can hold the negligent party accountable and get the compensation you deserve and need.

HOW MUCH IS MY PERSONAL INJURY CLAIM WORTH? The value of your case depends on a few key factors: the circumstances of your collision, the severity of your injuries, and limits on insurance coverage, among other things. The primary driver behind case value is how much the plaintiff could get in the damages, including:

* Past medical bills;

* Future medical bills;

* Lost wages;

* Loss of earning capacity;

* Pain and suffering;

* Mental and emotional distress; and

* Loss of enjoyment of life.

Some of those considerations might not have a clearly articulated value at first. However, based on our knowledge adn experience, we can offer an estimated case value after fully assessing your medical records, police records, statements, and other evidence, such as the progression or regression of your physical and mental state after an auto collision. The whole picture can provide a window into what to expect from a personal injury lawsuit.

COMPENSATION FOR DAMAGES IN A PERSONAL INJURY LAWSUIT. As mentioned above, plaintiffs can get compensation for certain types of damages related to their injuries. Essentially, personal injury lawsuits are filed to seek compensation, also known as “damages,” for the harms plaintiffs have suffered. The idea is that an injury victim is compensated so that they don't have to bear the financial burden of the consequences of another’s actions.

There are several different types of damages you could get in a personal injury lawsuit, some of which are “economic” and tied to specific costs incurred in the aftermath of an injury, and “noneconomic,” which are more subjective. What is available and how (and if) they are limited depends on where you live and/or where the injury occurred.

* Medical Bills. Those involved in a car crash might need to get medical care. This can include tests, treatment, hospital stays, and outpatient care to address immediate injuries. However it doesn’t always end there. Medical care could also be required on an ongoing basis, especially if there are serious or permanent injuries. Overall, this can be expensive. The injured person can face medical bills that are thousands or even hundreds of thousands of dollars. Damages assessed against the defendant in a settlement or trial should, ideally, cover all of this.

* Lost Wages. You were injured and you had to miss work. Maybe it was just a matter of using some sick time to go to doctor’s appointments or perhaps you were in the hospital and had to take a lot of time off. Or you were injured so severely that you can no longer work. Whether it’s the loss of a few days or the inability to work at all going forward, you could be entitled to compensation for those lost wages.

* Pain and Suffering. This category of compensation is calculated and awarded based on the depth and breadth of the pain and suffering you’ve endured—your type of injury and what medical treatment was required. To get this kind of compensation, the plaintiff will need to have as much evidence as possible to prove the impact of an injury caused by the negligence of another.

Medical records, which can show diagnoses, prescriptions, clinical visits and hospital stays, are a major way of showing both the extent and duration of recovery from an injury. This only works, though, if you are proactive about your treatment and communicate with your physician in a comprehensive manner. It can also be helpful to take photos and videos of your injuries and keep written records of your symptoms.

In gathering sufficient evidence that accurately represents your condition, you are providing information a jury (or even an insurance adjuster) could use to estimate how much money you should get for pain and suffering. In court, there generally isn’t a single, standard calculation used to assess a dollar amount on pain and suffering, although you will read about a “multiplier” calculation around the internet. Essentially, a jury could award compensation for pain and suffering based on fairly subjective factors, such as the credibility of the plaintiff’s testimony and whether they even like the plaintiff. Having records and related evidence can help bolster your case for pain and suffering compensation in the face of these subjective factors.

* Emotional Distress. This type of compensation is related to an injured person’s mental and emotional state following an injury. After all, severe injury isn’t exclusive to a person’s exterior. Depending on the nature of the collision, a personal injury victim could suffer anything from anxiety and depression to severe mental trauma, such as PTSD. Acquiring damages from emotional distress typically requires you to have comprehensive and accurate records from your therapist, psychologist, or psychiatrist, as well as a diagnosis of a specific psychiatric condition.

* Wrongful Death. Wrongful death claims are civil actions filed by survivors of an individual killed due to the negligence or misconduct of another party. Survivors are left without the love, support, and income of the deceased family member, and courts can award compensation accordingly.

The compensation provided by an award of damages for wrongful death can help ease the financial burdens associated with the loss of a loved one. Compensation awarded is designed to cover the lost income, leftover bills, and funeral expenses survivors face because of the death of their family member. It is also designed to help compensate for less specifically quantifiable aspects of a wrongful death, such as the sudden and unnecessary loss of someone’s spouse or parent. For example, laws will generally refer to this as something like “lost parental companionship, instruction, and guidance” for children who survive their parents.

* Loss of Consortium. If you or a loved one are in collision and injured to such an extent that you can’t truly carry on a complete relationship with your spouse or partner (or them you)—or one of you were killed in a collision—you could be eligible for compensation for loss of consortium (also called “loss of companionship”).

WHAT YOUR LAWYER DOES. Your lawyer is at the front line of your fight to get the compensation you deserve in a personal injury suit. First, they will assess your case to best determine how to fight for you. They will:

* Gauge the depth and breadth of your injuries and the negligent circumstances involved;

* Investigate the scene of the crash;

* Question witnesses;

* Request documentation;

* Work with medical experts;

* Review documents, photos, and videos; and

* Work with experts who can reconstruct the scene of the colllision.

That’s not all, though. They will use all of that information to go head-to-head with the defendant’s insurance company and/or attorneys to get you the best compensation possible.

YOUR ROLE IN YOUR LAWSUIT. When you’re the client in a personal injury case, there are only a few things you need to do, including:

* Don’t admit fault for your injury;

* Continue getting treated by your doctor;

* Document any ups and downs you encounter because of your injury; and

* Give your lawyer any documentation you have that can help your case: police report, insurance documents, and photos or videos you have of your injuries or the accident scene, among other things.

If you or a loved one have been injured in an auto collision and need legal representation to present your claim for damages, give us a call at 253.858.5434 to set up a meeting for a free initial consultation right away.

Using charitable trusts as part of your estate plan can mean saving taxes and supporting causes you value.

It's the time of year when some of our estate planning clients start thinking about making charitable donations in the new year. Charitable donations have the dual purpose of saving taxes and supporting valued causes. For individuals with substantial estates, this could mean hundreds of thousands of dollars in tax savings. Charitable trusts are an ideal way to accomplish this goal. The rationale for the different treatment of charitable trusts is that society wants to encourage charitable giving.

Typically, the same rules that apply to formation and governance of a private trust apply to charitable trusts. The primary differences include that charitable trusts must benefit a charitable purpose, that a charitable trust is exempt from the rule against perpetuities and is therefore easily modified, and that the state attorney general, rather than ascertainable beneficiaries, is the primary party with standing to enforce a charitable trust.

You can make a charitable remainder trust while you are still living and receive income from that property for the rest of your life. Both your income and your eventual estate may benefit from substantial tax savings, depending on the size of the charitable remainder trust. This trust is irrevocable.

Suitable charitable purposes include objectives like the relief of poverty, the advancement of education, or any other purpose sufficiently beneficial to the community to justify the trust’s preferential treatment. A trust to promote a political party is not a valid charitable purpose. However, a trust for the improvement of the structure and methods of government, in a manner advocated by a particular political party, is charitable. A trust to bring about a change in the law may be considered a valid charitable purpose, provided the purpose is not to bring about those changes by illegal means. In short, the scope of a charitable trust is construed relatively broadly.

A charitable trust may be valid even if the people who directly benefit are limited in number. However, a trust to educate a particular person or named persons does not qualify, nor does a trust to educate the trustor’s descendants, although scholarship trusts have been found to constitute valid charitable trusts even if the trustor’s family is given preferential treatment. The trustor is also permitted to delegate the selection of the charitable purpose to the trustee.

The rule against perpetuities is typically rationalized by a desire to limit trustors in what they can control from the grave. However, there is less concern for this with charitable trusts due to the doctrine of "cy pres." Cy pres dictates that if the trustor’s named charitable purpose becomes illegal, impossible, wasteful, or impracticable, the court may direct the application of the trust property to another charitable purpose that approximates the trustor’s intent. In order for cy pres to apply, a court must determine that the trustor had some general charitable purpose, such as for the benefit of elementary education, rather than a narrow purpose, such as exclusively wanting to benefit a particular charity. The rationale for the cy pres doctrine is that society wants to ensure that charitable trusts serve charitable purposes.

The trustor should make sure to use the exact legal name of the charity to avoid confusion and determine whether the charity is tax-exempt for federal estate tax purposes. The terms “benevolent” and “philanthropic” should be avoided because they have been found to be broader than “charitable.” You should hire an experienced estate planning lawyer to ensure your charitable trust is properly drafted.

If we can be of service to you, your family, neighbors, or coworkers, 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.