It's graduation time! Here are some things you should do and documents you should have before your 18-year-old heads off to college.

It's getting to be graduation time and there are some things you should do before your kid leaves for college. Before your 18-year-old heads out the door, make sure you have the legal documents in place to protect them. Accidents and illnesses happen to everyone, including young adults, and you want to be able to speak to health care providers, keep informed, and help make decisions for your teen once they leave home.

Here’s what you need to know when your teen turns 18. There are three forms that facilitate the involvement of a parent in an emergency or other situation…

WHAT YOU MAY NEED IN A MEDICAL EMERGENCY.

1. Healthcare Power of Attorney. This authorizes someone (usually the parent(s)) to make medical decisions on your kid’s behalf and it gives the parent(s) access to the child's medical records and the ability to communicate with their health care providers. By signing a healthcare power of attorney, your teen is appointing you to act on their behalf in making medical decisions in case he or she cannot make those decisions for themselves.

2. HIPAA (Health Insurance Portability and Accountability Act) Authorization (also called a HIPAA release). This is a more narrow document in that it permits healthcare providers to disclose your teen’s healthcare information to you or anyone they specify.

This document alone will often suffice for you to get information from the health care institution treating your child. In a HIPAA authorization, a young adult can stipulate that they don’t want to disclose information about sex, drugs, mental health, or other details that they prefer to keep private.

3. Durable Power of Attorney (DPOA). This enables a designated agent (again, usually a parent) to make financial decisions on the student’s behalf. The DPOA can provide that power vests in you immediately after signing the document or that it vests only if your child becomes incapacitated.

The DPOA enables the designated agent to, among other things, sign tax returns, access bank accounts, pay bills, make changes to your child’s financial aid package, or figure out tuition problems.

As parents, of course you always hope that you won’t need these documents, but it’s always a good idea to be prepared in case you do.

WHEN SHOULD YOU GET THESE DOCUMENTS? Your child should prepare these documents ahead of time because it may take time to get everything in order including notarization (although not every state requires notarization). Once kids take off for school it may be hard to get their attention, so be mindful of that.

WHAT ELSE CHANGES WHEN YOUR KID TURNS 18? When your child reaches 18, even though you may still think of them as children, under the law they have now achieved adult status. That status allows them to vote, serve in the military, serve on a jury, sign a contract, and get married without your consent. Although they still can’t do certain things, like drink alcohol or rent cars, their legal status is decidedly different than it was at 17.

* All males with U.S. citizenship (with very few exceptions) must register for the selective service upon reaching the age of 18.

* Although not required, this is a great time for your kids to register to vote.

* When your children turn 18, you no longer automatically have the authority to make healthcare decisions for them. And this is true even if they are still covered by your health insurance and you are paying the bills. This means that if your child has an accident or illness and is temporarily disabled, without a Power of Attorney, you may need court approval to act on their behalf or even to be informed of their medical status.

* Despite the fact that you are paying for their education, FERPA says you no longer have access to your child’s grades once they turn 18. That’s right, you can call the registrar and ask to see your 18-year-old’s transcript and they will not share it with you even though you’re the one signing the tuition checks.

* You can no longer manage money for your children once they turn 18.

If you've got a kid heading off to school in the fall, give us a call at 253.858.5434 and we can help your get these documents in place before they go. We represent clients throughout Washington and Idaho and are available to meet in person, by phone, or via video conference.

Creating an estate plan isn't just about money. If you have kids, it's important to name a guardian in the event something tragic happens to you and the other parent.

Creating an estate plan isn't just about money. If you have a minor child, it is important to name a guardian to raise your child in the event that both parents die before your child becomes an adult. While the likelihood of that actually happening is slim, the consequences of not naming a guardian are great. Providing for your child’s care in this unlikely event is part of being a good parent.

If you do not name a guardian, a judge (who probably won't know you, your child, or your relatives) will decide who will raise your kid without knowing your preference. You cannot assume the judge will automatically appoint your parent or sibling to raise your child; anyone can ask to be considered, and the judge will select the person the judge deems most appropriate.

If you have named a guardian in your Will or a Power of Attorney, the judge will still need to appoint the guardian but will have your preference as guidance. If you are divorced, the judge will usually name the child’s surviving parent as guardian unless it is not in the child’s best interests.

CHOOSING A GUARDIAN. The person you name as guardian does not have to be a relative, so consider all of your options. As you begin to list and evaluate your candidates, consider the following:

* A guardian’s parenting style, values, and religious beliefs. If your candidates have children, observe how they are raising and disciplining them. If they do not have children, find out all you can about how they were raised; people tend to parent how they were parented.

* How far away from you do they live? Would your child have to move far away from a familiar school, friends, and neighborhood at an emotionally difficult time?

* How comfortable is your child with your candidates now?

* How emotionally prepared are your candidates to take on this added responsibility? Someone who is single may resent having to care for someone else’s child. Candidates with a houseful of their own children may not want more around, or conversely, they may welcome the addition.

* Do they have the time and energy? Your parents may have the time, but consider if they would have the energy to keep up with a toddler or teenager. Someone who works long hours may not initially seem to be the ideal candidate at first, but this candidate may be willing to change their priorities if needed.

* If your candidates have children of their own, would your child fit in or feel lost?

* Consider your child’s age and that of your candidates. An older guardian may become ill or even die before your child is grown. A younger guardian, especially an adult sibling, may be concentrating on finishing college or starting a career. If your child is older and more mature, you should consider your child’s input in your decision.

* Is the candidate you select willing to serve? Ask. Do not assume someone will take the job.

THE FINANCIAL SIDE. Raising your child should not be a financial burden for the person you select as guardian, and a candidate’s lack of finances should not be the deciding factor in your decision. You will need to provide enough money (from your own assets, from life insurance, or both) to provide for your child the way you want. These funds could then help the guardian buy a larger car or add on to their existing home, buy a bigger washer and dryer, plan for family vacations, etc., if needed.

Consider whether it is appropriate to name someone else to handle the finances. Naming one person to raise the kids and to handle the money can make things simpler because the guardian would not have to ask someone else for money. However, if the best person to raise your child is not necessarily the best person to handle money, you may select another person to manage your child’s inheritance.

Many parents set up a Trust for the child’s inheritance (so the child will not inherit everything at age 18) and name someone other than the guardian to be the Trustee of the Trust. There can be disagreements over expenses (for example, whether the child should go to public or private school), so be sure to name people as guardian and Trustee who can work together for the best interests of your child.

PROVIDE A LETTER OF INSTRUCTION. Consider writing a letter to the guardian explaining your expectations and hopes for your child’s upbringing. Include your desires about your child’s education, activities, and religious training. Read and update your letter every year as your child grows and develops interests. You should also discuss these desires with your selected guardian.

HAVING A HARD TIME MAKING A DECISION? If you are having trouble making a decision, list the pros and cons for each candidate. If you and your child’s other parent are having trouble coming to an agreement, try making your own separate lists of top candidates and look for some common ground. Be sure to name at least one alternate in case your first choice becomes unable to serve.

Keep in mind that the person you select as guardian will probably not raise your child. The odds are that at least one parent will survive until your child is grown. You are simply being a good parent by planning ahead for an unlikely, but possible, situation. Next, realize that no one but you will be the perfect parent for your child, so you are probably going to have to make some compromises in some areas. Also, you can change your mind. In fact, you should review and change the guardian as your child grows and if the guardian’s situation changes.

Do not wait too long. Remember, if you do not name someone to raise your child and the unlikely does happen, a court will decide who will raise your child without your input.

If you have questions about appointing a guardian for your children in your Will or a Power of Attorney, 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.

The legal issues surrounding auto collisions can be complex and overwhelming. It's critical that anyone who's been injured in a car crash consult an experienced lawyer.

When a driver harms another person in an auto collision, the injured person may have the right to receive damages in the form of financial compensation. There are many causes of auto collisions, including human error, equipment malfunction, adverse road or climate conditions, negligence on the part of another driver or passenger, or other causes beyond your control. Even injury victims who believe they were partially at fault for a collision may have the right to compensation.

The legal issues surrounding auto collisions and traffic laws can be complex and overwhelming. This is why it is critical that anyone who has been injured in a car crash consult with an experienced lawyer that can handle any type of auto injury case.

Getting your life back on track after an auto collision can take more than just time, good insurance, or a great support system. It also takes a trustworthy, dependable, and responsive legal team that can evaluate your case and provide guidance on how to deal with insurance and the legal system in pursuit of the financial compensation that you deserve to make you whole.

The days immediately following a collision can be a vulnerable time for victims. Not only are you suffering from your injuries, but you may also be accruing medical bills, missing time from work, and missing time with loved ones or needing to arrange for extra childcare or other services to allow you to get through the day. These types of losses and expenses may be reimbursable, though an initial settlement offer made by the at-fault driver's insurance company will rarely reflect them.

In addition to making unfairly low settlement offers, it is a common practice for insurance companies to aggressively pressure victims into settling for less than they are owed for their injuries. The sooner you contact a lawyer, the sooner you can even the field with the insurance company and show them that you have someone who will fight for what you are owed.

Determining your right to compensation involves an in-depth knowledge of car insurance, medical issues, details of traffic law, and how insurance companies evaluate, negotiate and litigate claims. Your lawyer can help guide you through the settlement negotiation process or legal process, as well as help set your priorities and keep you organized as you move through the process. This is particularly important for documenting costs you have incurred as a result of your injuries, such as vehicle repairs, medical bills, lost wages, extra childcare or household expenses, and others.

If you or a loved one has been injured in an auto collision that was not your fault, you deserve to speak with a lawyer who knows how to hold at-fault drivers responsible and get the best possible settlements for their clients. Whether you or your loved one were injured due to another driver's poor judgment, impairment, distraction, or recklessness, we can help you understand your rights and fight for your interests. Contact us today at 253.858.5434.

Parking lot closed next week for repaving and restriping. Sorry for any inconvenience.

To our clients, colleagues, and friends - Please note that our parking lot will be closed next Monday the 6th through Wednesday the 8th as it is getting repaved and restriped. Please park in the lot next door, directly to the west of us. There is also plenty of street parking on Harborview Drive and on Judson Street. Sorry for any inconvenience, but we promise the parking is going to look great!

Taking into account estate and income tax issues as well as human and family concerns and financial management factors, our goal is to create estate plans to address all these issues.

All clients face important issues in the desire to preserve the assets they have accumulated for their families, and to arrange for efficient administration of their estates. We are well versed in techniques that aid clients in forming and implementing comprehensive estate plans. While reducing estate tax liability is an important focus of the estate planning process, we understand that each client's situation is unique, and that tax motivated decisions must be consistent with the client's personal desires. Taking into account estate and income tax issues, as well as human and family concerns and financial management factors, our goal is to create comprehensive estate plans to address all these issues, while tailoring each plan to the needs of the individual client: from traditional Wills and Trusts for taxable and nontaxable estates, to more sophisticated planning including the formation and implementation of business succession plans, family entities, charitable trusts, irrevocable insurance trusts and private foundations.

Estate administration is also an essential part of our practice. Administration of a decedent's estate offers many opportunities for income and estate tax savings through careful post-mortem planning. Valuation issues are often critical in larger estates, and we have developed strong working relationships with professionals who value many different types of property. We also maintain relationships with accountants who have significant experience in both estate tax and estate income tax matters.

We also counsel clients in matters of probate and trust administration, post-mortem planning, marital agreements (both prenuptial and post-nuptial), and the preparation of gift and estate tax returns.

Our work in the estate planning area includes:

(1) Development and coordination of estate plans, including:

* Succession planning for multiple generations in family businesses;

* Coordination of charitable and family gifts; and

* Creation of limited liability companies and other entities to protect family ownership, ensure continuity of management and provide an efficient means of making gifts.

(2) Drafting documents to:

* Reduce, defer, and where possible, eliminate federal and state estate tax liability;

* Protect family assets threatened by issues such as heirs with dependency, creditor, or immaturity problems;

* Provide for beneficiaries with special needs, while protecting their entitlement to government benefits; and

* Arrange for appropriate provisions for children from multiple marriages.

(3) Probate of Wills and assistance to Personal Representatives (Executors) and Trustees in carrying out their fiduciary duties related to administration and settlement of estates and trusts.

(4) Representing estates and trusts and their beneficiaries in negotiation and litigation of family conflicts and disputes with third parties.

(5) Coordinating post-mortem planning, including the use of disclaimers to reduce estate tax liability or shift assets within the family without additional tax cost.

(6) Preparing prenuptial and post-nuptial agreements and other intra-family documents that affect clients' estates.

If we can be of service to you, your family, friends, neighbors, or c-workers, please 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.

Using online Do-It-Yourself estate planning services can lead to expensive and unpleasant mistakes. Hire an experienced professional who is trained and educated in the law.

As a lawyer whose practice is primarily estate planning and probate, I have seen hundreds of estate planning documents, including some from do-it-yourself online services. I appreciate that using a DIY site to draft a Will can save money and time. But I also know that doing it this way can lead to expensive and unpleasant mistakes.

I recently saw one DIY online estate planning kit (hawked by a woman who claims to be a finance expert - we won't mention any names, but it rhymes with Shmuze Shmorman) whose estate planning “packages” had the same document labeled with three different names. Worse, the packages I looked at were missing a key estate planning document which very few users would know to ask about. This service, like many other DIY estate planning sites, claims to have attorneys on staff, but access to specific help for your personal documents is rarely available. If personal advice is offered, it then appears to cost a great deal more to receive.

But what if you don’t know which questions to ask?

ONLINE DIY WILLS vs. HIRING AN EXPERIENCED PROFESSIONAL TRAINED AND EDUCATED IN THE LAW. For some people with complicated personal and financial lives, today's complexities may not be fully addressed with a do-it-yourself service for Wills and Trusts. While many of us would prefer to fill in the blanks in silence than have to talk to anyone about our doubts or concerns, sometimes it helps — a lot — to get professional advice.

If you prepare your taxes yourself and they end up incorrect, you and the IRS may end up working things out. If you decide to do your estate planning by yourself, however, you may never know the results of your work, but your loved ones will.

There are lots of DIY options for completing your own estate plan, and they have been available almost as long as we have had the internet. (Longer, if you count all the software packages you could buy off the shelf.) With the ease and availability of these programs, and their low price, you might think more of us would have an up-to-date estate plan. Yet according to the AARP article, "Haven’t Done a Will Yet?," “only 4 in 10 American adults have a will or living trust.”

WHAT GOOD ESTATE PLANNING IS ALL ABOUT. Our power to express our preferences is what good estate planning (or life planning) is all about. As I've said to clients so many times before, every client and every client's family is unique and different; there are no one-size-fits-all, cookie-cutter documents or plans that fit every family in every situation.

Depending on the client's situation, some very basic estate planning documents can include: a Will, a Revocable Living Trust Agreement, a Durable Power of Attorney, a Health Care Power of Attorney, a Directive to Physicians (commonly called a "Living Will"), and if you live in Washington, Idaho, California, Arizona, New Mexico, Nevada, Texas, or Louisiana, a Community Property Survivorship Agreement. If you plan to use any or all of them through a DIY site, expect to be offered a fill-in-the-blank approach. Keep in mind that each state has its own probate code (the body of law governing estate planning and implementation) and its own state estate tax laws. The software package you use may have different names for the same documents I have listed above.

Some of the DIY sites I visited have all of these documents for you, but only if you purchase their higher-end packages. Some offer limited attorney consultation; on one site, it was really a drop-down of questions with pre-written responses, not an actual conversation with an attorney.

One other major problem with these DIY sites is that they push customers really hard to do a Revocable Living Trust, but don't explain what a Revocable Living Trust actually is or does and definitely do not advise or assist customers with the most important part - actually funding the Trust, because without that, the whole plan falls apart.

PROS AND CONS OF DIY ESTATE PLANNING. The advantage of using a DIY service is that you will have a plan, as quickly and cheaply as possible, and that may be better than having no plan at all. This is especially true regarding getting a Will, Powers of Attorney, and Directives to Physicians. Those handle most emergencies for people who don’t own real estate or much else.

The range of DIY services also has a range of prices — like $69 for just a Will, to several hundreds of dollars for what may be described as a “complete plan.” Some sites have more information than others about their options. Most presume that you already know what you want. But the reality is that many people have no idea what they want or need. Once you get into the complexities of family dynamics and perhaps Trust language specific to your state and situation, DIY estate planning can cause more challenges than working with a team of professionals.

MY CAUTION ABOUT DIY ONLINE WILLS. Here is my caution, based on my experience: You don’t know what you don’t know. You know some things about how you want to dispose of your assets after you die. What you may not know is all the case law and legislation that have evolved into your state’s probate code. If you do decide to look for a lawyer who does estate planning, I recommend interviewing two or more. This way, you will get a feel for how each handles client relationships, payment, and follow-up. You may already have other trusted professionals (a CPA, a financial planner, etc.) who can refer you to estate planning attorneys in your area.

However you choose to get your plan completed, DIY or with the help of an experienced lawyer, please get your estate plan done, and soon. You never know what surprises life will bring that will invoke your estate plan.

If we can be of service to you, your family members, friends, neighbors, or co-workers, give us a call at 253.858.5434 to set up an appointment today. We represent clients throughout Washington and Idaho and are available to meet in person, by phone, or via video conference.

Are you thinking about starting up a new business in Washington? Here are some tips.

Are you thinking about starting up a new business in Washington? Here are some tips:

STEP 1: FORM ENTITY. The first step in starting a new business would be forming your business entity. You should almost always run your business through an entity structure. That’s usually going to be an LLC – the most popular choice right now. There are many other business entity types out there. For example you could form a corporation (a C corporation or an S corporation), limited liability partnership, or limited partnership. All these business entities have pros and cons, and we can help you figure out which entity structure might be best for you.

Before you get into the process of actually forming that entity, you should make sure the business name is available. You want to check whether other businesses are using that name. We can help. You also want to make sure your name is not trademarked. We can help you figure that out as well. And you want to make sure your domain name or website is available.

Once you’ve selected an available name for your business, consider drafting an operating agreement. However, you might not need an operating agreement if, for example, if there will never be multiple owners of the business, and you never intend to buy real estate. In that situation, you might be perfectly fine operating your business without an operating agreement.

After drafting and signing your operating agreement, you can officially form your business entity by filing with the Washington Secretary of State. Usually you file online, but you can do it through the mail with a paper submission if you prefer.

STEP 2: OBTAIN EIN. Step 2 in the process of forming your business would be to get an EIN (employer identification number) from the IRS. An EIN is a business’s federal tax identification number, and you’ve got have one to operate a business in the U.S. Usually an owner of the business must have some sort of tax identification number as well. If you are a citizen, that would simply be your social security number. If you are not a citizen but you have resident status in the U.S., then you may have been issued a different type of tax identification number. You can still form a business even if no owner has a tax identification number as an individual, but the business can only function as a place holder–it cannot do much. An exception is when an owner intends to obtain a tax identification number in the near future. In that situation, the business can operate normally, but only for about six to twelve months while the owner obtains their individual tax identification number.

STEP 3: MASTER BUSINESS LICENSE. The next step in the process of forming a business in Washington would be to get a master business license. A master business license is a Washington State business license, and you get it from the Department of Licensing. It is a fairly simple process. You just go online, check some boxes, and pay a fee.

STEP 4: LOCAL LICENSES. Step 4 in the process of forming a business in Washington would be to get your local business licenses. For example, if you have locations in Seattle, Everett, and Bellevue, you would need business licenses from each of those cities. Usually you will get local businesses licenses directly through the city, but in some situations, you can obtain them online during the master business license application process. Some cities cooperate with the state to simplify the process.

STEP 5: SPECIALTY LICENSES. The next step is researching and obtaining specialty business licenses. There are a host of these specialty licenses that apply to a vast number of businesses. Unless you have experience running a business of the type you’re contemplating, you should research specialty licensing carefully. The State of Washington produced an eight-page list of specialty licenses, and with each line containing a difference specialty license. For example a restaurant might need food handler’s permits, liquor licenses, and the like.

STEP 6: BANK ACCOUNT. The sixth step: opening a businesses bank account. Usually you can’t get your business bank account prior to completing most of the other steps listed above, because the bank with request your business’s identifying numbers, such as your EIN and UBI.

MISCELLANEOUS STEPS. There may be other, miscellaneous steps to complete that might or might not apply to you. Some examples:

* Financing. If you are trying to raise financing for your business, there are a number of regulations. You typically cannot raise money by selling ownership interests to the average person.

* Zoning and Local Codes. You should pay special attention to zoning and local codes if you intend to run your business from a location that did not contain a similar business before you.

* Hiring Employees.

If you have questions about starting up your new business, give us a call at 253.858.5434 to see how we can help.

Achieving a Better Life Experience - ABLE - Accounts are an innovative tool for gifting and saving funds while protecting eligibility for critical benefits for disabled family members.

Achieving a Better Life Experience Accounts—better known as ABLE accounts—are an innovative tool for gifting and saving funds while protecting eligibility for critical medical and cash benefits for disabled family members. These accounts do not replace the important role of Special Needs Trusts, but they do offer an alternative for those managing gifts and earnings under $16,000/year, as well as those with larger Special Needs Trusts who would like to provide an additional way for the beneficiary to save and spend money without disrupting benefits like Medicaid and SSI.

WHAT ARE ABLE ACCOUNTS AND WHERE DID THEY COME FROM? ABLE accounts are tax-advantaged savings plans, similar to the more familiar 529 Pre-Paid Tuition and College Savings Plans (in fact, ABLE accounts are found under Section 529A of the Internal Revenue Code).

These accounts were authorized by Congress in 2014 but have been slowly picking up steam as states create their own programs. In the Northwest, Oregon beat Washington to unrolling ABLE Accounts, but Washington residents who enrolled in the Oregon program can convert to the Washington ABLE program. Washington residents setting up new ABLE accounts can work directly with the Washington State ABLE Savings Plan.

With an ABLE account, a person disabled before their 26th birthday can place up to $16,000 each year (from any source) into the account, up to a federal maximum of $100,000 without the funds counting toward the SSI $2,000 asset limit. Disabled account holders who are working can also contribute an additional amount equal to the beneficiary’s annual earned income, up to $12,140. The interest growth is tax-free, and the funds are considered exempt assets for purposes of Medicaid and SSI.

WHAT EXPENSES CAN BE PAID FROM AN ABLE ACCOUNT? Funds from ABLE accounts may be used to pay for Qualified Disability Expenditures (QDEs). These are expenses related to the account holder’s disability, for their own benefit. These expenditures may include:

* Education

* Housing

* Care Management

* Financial Assistance

* Transportation

* Basic Living Expenses Related to Disability

* Legal and Accounting Fees

* Disease Prevention

* Assistive Devices

For many disabled ABLE Account holders, the best feature (as compared with traditional Special Needs Trusts) is that they can pay for expenses directly themselves, using a pre-paid card that acts like a normal debit card. In states offering ABLE Accounts with the pre-paid card option (including Washington and Oregon), this gives account holders a degree of freedom and experience with handling their own finances that is strictly limited under Special Needs Trusts.

WHAT IF I ALREADY HAVE A SPECIAL NEEDS TRUST? DO I NEED AN ABLE ACCOUNT TOO? Many people who are beneficiaries of a Special Needs Trust (also called a Supplemental Needs Trust, or an SNT) will benefit from opening ABLE accounts. Examples include:

* An SNT beneficiary who is employed on the Ticket to Work program

* A Special Needs Trust Trustee who wants to give the Trust’s beneficiary the ability to choose how to spend some of the Trust’s funds

* A disabled person with a third-party SNT, but who has received money for Christmas or as the result of a small inheritance

In each case, an ABLE Account can provide additional support for a disabled person who already has a Special Needs Trust. For those on the Ticket to Work program, earnings can quickly accumulate above the asset limit; opening an ABLE account gives the disabled worker a place to safely accumulate earnings and work toward savings goals. Trustees who want to give SNT beneficiaries more freedom to manage funds may distribute up to $16,000/year out of the Special Needs Trust and into the beneficiary’s ABLE account, giving the beneficiary flexible dollars they can save and spend on their own Qualified Disability Expenses. And for beneficiaries of third-party Special Needs Trusts, an ABLE account provides a way to save gifts they have received, outside of the third-party trust (and not triggering a Medicaid payback on the entire Special Needs Trust).

ARE THERE MANY RESTRICTIONS? Before opening an ABLE account, disabled savers and their families should carefully examine the rules and choose a program with the benefits they need most, such as low fees or a pre-paid card option. They should also keep in mind the critical rules of the program:

* The account holder must have been disabled before their 26th birthday

* No one may have more than one ABLE account without triggering non-exempt asset rules for Medicaid and SSI

* The maximum annual contribution, from all sources, is $16,000 (as of 2022)

* The maximum account total is $100,000

* The funds may only be used for the account holder’s Qualified Disability Expenses

Keep in mind that unlike Third-Party Special Needs Trusts, assets remaining in an ABLE account at the time of the disabled person’s death will be subject Estate Recovery from Medicaid.

DO I NEED A LAWYER TO OPEN AN ABLE ACCOUNT? ABLE accounts may be opened without the expense of setting up a trust. However, many families considering the ABLE program may also benefit from a consultation with an experienced lawyer who can help them decide on the best ways to save while also protecting vital health care and cash benefits. For many families, ABLE is just one piece of the puzzle in providing financial security for a disabled family member.

If you have questions about ABLE accounts, or any other estate planning issues regarding disabled family members, give us a call at 253.858.5434 to set up an appointment today.

When it comes to estate planning, there is no such thing as "normal" or "what everyone else does." Every family is different and every family's situation is unique.

When we meet with clients to talk about their estate plans and when they tell us what they'd like their Wills and Trusts to do, they often ask, "What do other people do? Is this normal?" To which we always have to respond, "There's no such thing as 'normal.'" Every family is different and every family's situation is unique. Family members all have different skills, different talents, different goals, and different needs. We represent clients regarding their estate plans with the fundamental belief that there is no cookie-cutter, one-size-fits-all estate plan. Wills, Trusts, Powers of Attorney, Health Care Directives, etc. all apply differently to different individuals and individual families.

We create customized estate plans that fit each client's individual goals, needs, and situations. If you have questions about a personal, customized estate plan to take care of your family and loved ones, 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 the you.

"Discovery" is the pre-trial process of exchanging information between the parties in a lawsuit. There are numerous types and purposes, and not everything is discoverable.

If you’ve been inside a courthouse, you’ve probably seen lawyers wheeling around Samsonite catalog cases or pushing folding carts stacked with cardboard boxes. You may have asked yourself: what is all that stuff? Those cases and boxes contain some pleadings and case notes. But most of the contents represent evidence obtained from arguably the most important phase of a personal injury lawsuit: the discovery phase.

WHAT IS DISCOVERY? The term “discovery” is used to describe the pre-trial process of exchanging information between parties to a lawsuit. Discovery enables litigants to compel adversaries to turn over evidence in their possession before trial. Discovery is a formal process that exists in both civil and criminal cases and, for the most part, takes place outside the courtroom.

WHAT'S THE PURPOSE OF DISCOVERY? Discovery was designed to prevent a situation where one side doesn’t learn of the other side’s evidence or witnesses until the trial, at which point there’s no time to obtain responding evidence. To put it simply, discovery levels the playing field by making all information relevant to the case available to both sides. The hope is that when parties have access to the same information, the outcome of the case will be decided based on the merits of the case rather than which party has the most information.

TYPES OF DISCOVERY. There are four basic methods of discovery:

(1) Interrogatories. Interrogatories consist of written questions that one party sends to another party to answer. Some states limit the number of questions that can be asked. These questions, if not objected to, must be answered fully under oath. If a party receives new information that changes one of their answers, they’re obligated to re-submit their answer with the new information.

(2) Requests for Production. If a party requests a document (rather than an answer), it’s called a Request for Production. Common examples in personal injury cases include requests for medical records and photographs of vehicle damage. Most lawyers submit Requests for Production along with interrogatories and call the entire document “Interrogatories and Requests for Production.”

(3) Requests for Admissions. Although the Washington Supreme Court has said that Requests for Admissions are not technically "discovery requests," they are when one party asks the other party to admit certain facts under oath in order to make the trial go faster in order to get certain agreed-upon facts out of the way. These are similar to interrogatories, but the recipient must simply “admit” or “deny” each question. For example, a plaintiff might ask a defendant, “Admit that you were driving a 2017 Toyota Tacoma on northbound I-5 on January 23, 2021.”

(4) Depositions. Depositions are opportunities for the parties to question each other and witnesses orally and under oath. Depositions take place in the presence of a court reporter who produces a written transcript of the testimony for all parties involved. The goal of most depositions is to extract information to help the deposing party develop a trial strategy, support their legal argument, and obtain statements that can discredit trial testimony if that testimony varies from the testimony taken during the deposition. They are also a good opportunity to evaluate how a witness will perform at trial.

IS EVERYTHING DISCOVERABLE? In general, parties can obtain discovery regarding any matter that can "lead to the discovery of admissible evidence" and is not privileged.

To be discoverable, a piece of evidence doesn’t have to be admissible in court. Rather, it must be “reasonably calculated to lead to the discovery of admissible evidence.” For example, maybe a party’s tax returns wouldn’t be admissible in a personal injury case (because they’re not relevant). But, so long as the tax returns contain information that could lead to another piece of evidence that is admissible, those tax returns are discoverable.

Discovery doesn’t extend to privileged information. The four most common privileges are:

(1) Attorney-client privilege. Confidential communications made by clients to their lawyers (and their staff) in the course of their professional relationship are privileged and need not be turned over to the other side.

(2) Work-product doctrine. Materials prepared by a lawyer in preparation of litigation that contain their impressions, conclusions, opinions, or legal research (such as notes from client meetings) are privileged and therefore don’t need to be turned over to the other side.

(3) Marital privilege. In most states, confidential communications between spouses are privileged.

(4) Physician-patient privilege. Confidential communications from a patient to a doctor made in the course of medical consultation or treatment are privileged in some states. However, this privilege is generally waived if the plaintiff files a personal injury lawsuit concerning the injuries discussed.

DO I NEED A LAWYER? You don’t need a lawyer to conduct discovery. However, if you participate in discovery, you must follow the state’s discovery rules. These rules explain what can be discovered and how it can be discovered. Unfortunately, these rules are incredibly complex and if you fail to follow them exactly, the other party will object to your requests. What’s more, if a defendant objects to a valid discovery request, there’s a whole process that the plaintiff has to go through to get the discoverable information (including initiating a CR 26(i)/LR 37(e) conference and filing a motion to compel). As such, if you’re not represented by a lawyer, a defendant may object to your valid requests in the hopes that you don’t have the knowledge or resources to compel them to answer the requests.

If you've been injured in an auto collision or other incident and/or are involved in a personal injury lawsuit, give us a call at 253.858.5434 to see how we can be of service.

We assist clients in creating plans for the disposition of their estate after death and for the perpetuation of family businesses.

We assist clients in creating plans for the disposition of their estates after death and for the perpetuation of family businesses. This involves the laws of Wills, Trusts, probate, real estate, marriage, and state and federal taxation. We prepare documents that preserve as much flexibility as possible and provide opportunity for later tax planning. This is important given the frequent changes to the tax laws we often experience. When you need an estate planning lawyer, we have the knowledge and experience to address all of your needs. In addition to Wills and Revocable Living Trusts, we prepare documents such as Irrevocable Life Insurance Trusts (ILITs), Qualified Personal Residence Trusts (QPRTs), Qualified Domestic Trusts (QDOTs), and Charitable Remainder Trusts to carry out lifetime estate planning objectives and reduce or eliminate federal and state estate taxes. Optimal tax planning may also involve the rearrangement of ownership of property within a family unit, by gift or otherwise. It may also involve planning for multiple generations.

Having well-crafted, properly executed estate planning documents in place can ensure that your wishes will be followed and may also prevent a contest between your heirs. Such contests are not uncommon, especially if the Will or other documents are not properly signed and witnessed. We can help you decide how your Will or Trust should direct distribution of your property in light of the size of your estate and the age and well-being of your spouse, children, grandchildren, or other heirs. The distribution may involve setting up Trusts in your Will, structuring the timing of distributions to your heirs, and taking steps to mitigate estate taxes. We can also help you identify who should be in charge of your estate and who might act as guardian of your minor children, if necessary, on your death. Having an estate plan can protect your estate and prevent unnecessary expenditures at the time of death. Contact us at 253.858.5434 to have your estate plan prepared and be confident that your wishes will be honored upon your death.

The death of a family member or loved one is stressful, to say the least. The legal issues around death can be complex. We can help with your Will and settling an estate.

The Holmes-Rahe Stress Inventory rates various life events for stress. Not surprisingly, the death of a spouse is the top item and death of close family is in the top five too. It’s not surprising then that it’s at a time like this that Personal Representatives and families turn to lawyers to help them. The legal issues around death can be complex. A lawyer can help you with your Will and with settling an estate.

WHAT IS PROBATE AND HOW CAN A LAWYER HELP? Probate is the process by which estates get settled after someone dies. It’s a court process so it can be complicated and involve legal terminology. It’s important for anybody writing a Will, for any beneficiary of a Will, and for anybody named as Personal Representative of an estate that it is handled properly. Using their knowledge of estate law, a lawyer can help the process of administering an estate after someone has died. They ensure that the decedent's instructions are followed and their heirs receive any inheritance with minimum stress.

1. DRAFTING A WILL. There are DIY Will writing options available on the market but there are consequences for your heirs if you get it wrong. Not only can your poorly drafted Will be contested but it can also cause stress and conflict for your heirs. The best way of ensuring that your wishes are followed on your death is to have your Will drafted by an experienced lawyer.

2. PROTECT THE ESTATE. A lawyer can help ensure that the decedent's wishes and the interests of their families are protected. Legal claims are sometimes made after a death. These claims against the estate are difficult to fight without legal training and experience. Hiring a lawyer to handle claims against the estate helps reduce the anxiety families feel when having to deal with an unfamiliar process at what may be a difficult time.

3. SPEED UP PROBATE. The probate process can be complex and, depending on the details of the Will, it may not run smoothly. An experienced lawyer can assist an untrained Personal Representative to navigate the legal process. They can help resolve the many financial and legal matters that arise with a minimum of fuss and delay.

4. SUPPORT PERSONAL REPRESENTATIVES AND HEIRS. As Personal Representative, you are likely to have many questions about how to fulfill your responsibilities. As an heir, you may have questions about the probate process and what to expect. A lawyer helps reduce confusion and doubt about these legal matters.

A lawyer can help Personal Representatives with court filings, debt settlement, appraising assets, and distributing inheritance. The role of Personal Representative is fraught with potential pitfalls that leave the PR open to personal legal risks. Some professional help may be a relief.

5. REDUCE FAMILY CONFLICT. A death can result in a range of emotional reactions. There is grief but it can also be a time of tension between family members and other heirs. Disputes about the estate based on differing expectations do occur. A lawyer may help reduce these tensions more effectively than people more closely involved. The professional detachment of a lawyer and understanding of the probate process can calm things down.

If you have been named Personal Representative in someone's Will and have questions about the probate process or how we can be of assistance, give us a call at 253.858.5434 to set up an appointment today.

Business owners have many options for creating different legal entities to own their business.

There are different legal entities you can create to own a business. Sole proprietorships and partnerships are the simplest, but owners expose themselves to potential personal liability if things go wrong. A limited liability company (LLC) may be able to shield you from that liability, depending on the situation. Business owners have many options.

WHAT IS A LIMITED LIABILITY COMPANY? An LLC is a type of business entity that provides many of the advantages of a corporation, combined with the tax advantages and flexibility of a partnership.

WHAT CAN AN LLC DO? LLCs can engage in any lawful, for-profit business or activity other than banking or insurance.

WHO MANAGES AN LLC? DOES IT NEED A BOARD OF DIRECTORS An LLC can choose a member to be the manager or hire an employee. A benefit of an LLC in Washington or Idaho is that it doesn’t need a board of directors like a corporation.

WHO CAN BE PART OF AN LLC? An LLC can be one or more members, including individuals, trusts, estates, partnerships, limited partnerships, corporations, other LLCs, or other business entities.

CAN AN LLC MEMBER BE A FOREIGN NATIONAL? Yes, but the person must have a U.S. Taxpayer ID Number if the business is engaged in a U.S. trade or business. If the person is working in the U.S. for the LLC, they will need the proper visa or be a permanent resident (have a “green card”) to do so legally.

ARE THERE RESTRICTIONS ON THE NUMBER OF MEMBERS? There needs to be at least one, but, otherwise, the number isn’t restricted.

HOW IS MEMBER COMPENSATION DETERMINED? That’s up to the members to decide. It need not be linked to how much ownership the member has.

ARE LLCS EASY TO CHANGE? After the LLC structure is created, it’s easy to add new members or sell interests to someone else. LLC paperwork requirements are more relaxed than the C-Corp business structure. Generally, LLCs have fewer restrictions on many administrative issues compared to other business entities.

WHICH BUSINESSES MIGHT BE A BETTER FIT FOR AN LLC? LLCs may be a good option for medium- or higher-risk businesses, owners with significant personal assets to protect, and owners who want to pay a lower tax rate than they would with a corporation.

HOW LONG DOES IT TAKE TO MAKE AN LLC? It’s not a long process. Most of the time is spent discussing with the client whether an LLC is the best fit for the business. It’s a matter of creating legal documents. Filing an LLC with the Secretary of State can be done online.

WHAT ARE THE BENEFITS OF AN LLC? Under an LLC structure, personal assets (e.g., a home, personal vehicle, etc.) are not subject to the debts and liabilities of the company. This liability shield is not foolproof, however. As with corporations, under limited circumstances, a person can “pierce the corporate veil” and can reach an individual’s personal assets. An LLC may be the right choice for short-term projects or joint ventures. Multiple businesses or individuals can work together, and there would be a specific dissolution date or term—the number of years the LLC is expected to exist.

HOW ARE LLC MEMBERS TAXED? Double taxation usually occurs with a corporate business structure. The corporation and the owners are taxed separately. An LLC prevents this because the LLC isn’t taxed (unless you want it to be taxed like a corporation), but members’ income is taxed as if they’re partners.

WHAT ARE THE DISADVANTAGES OF AN LLC? LLC profits are subject to self-employment taxes, including Medicare and Social Security. LLCs must retain more than one member or be subject to federal taxes as a sole proprietorship or corporation. LLC filing papers and regulatory requirements differ from state to state.

WASHINGTON LLCS. LLCs in Washington must file an annual report with the Secretary of State, and if they have more than one member, obtain an IRS Employee Identification Number. Washington LLCs must also appoint a registered agent with a physical address in the state of Washington, to receive service of process. Out-of-state LLCs doing business in the state of Washington must also appoint a Washington-based registered agent and register with the Secretary of State.

Although Washington does not require LLCs to have operating agreements, a solid operating agreement can address a variety of issues that may arise during the course of business. We can help draw up an operating agreement that will grow with your new company.

WHY HIRE A LAW FIRM TO FORM AN LLC? LLCs have specific requirements which must be met in order to obtain tax advantages. Setting up your business properly in the startup phase can save you significant money in the long run. An experienced lawyer can help you understand whether it’s the best choice of business entity for you, as well as help you navigate complicated regulatory requirements and keep up with mandatory filings.

We have provided legal services to small and large companies for decades. We can discuss the benefits of an LLC and whether it’s the right choice for your business. Give us a call at 253.858.5434 to set up an appointment today.

As you get older, it's important to have an estate plan in place to make sure your assets and property can easily be distributed to your family and loved ones after you pass away.

As you get older, it’s important to have an estate plan in place to make sure your assets and property can easily be distributed to your family and loved ones after you pass away. A Revocable Living Trust is an estate planning tool that helps you protect assets and safeguard your family’s future. If you’re thinking of establishing a Trust, consult us to prepare your estate planning documents and see how it fits into your estate plan.

WHAT IS A REVOCABLE LIVING TRUST? A Trust Agreement is an estate planning tool that describes how your Trust is going to be administered after you die. Similar to Wills, you can name the beneficiaries of the Trust and provide detailed instruction about which Trust beneficiary gets certain Trust property and assets. The real estate and other assets in an established Trust are distributed after the Trustor becomes deceased or incapacitated.

Revocable Trusts are called "Living Trusts" because they are established while you, the Trustor, are still alive. In a Trust arrangement, title to Trust assets and property is transferred to and managed by the Trustee.

Transferring the deeds and titles prevent assets held in Trust from being probated. Probate is the legal process of verifying a Will and administering a person’s estate. In most cases, the probate process can be costly and take a lot of time, making estate administration difficult for your family members. A Trust is a common way to avoid probate while making sure your last wishes are followed.

We can help you establish a Trust that makes the administration process easier for your family.

WHAT'S THE DIFFERENCE BETWEEN REVOCABLE AND IRREVOCABLE TRUSTS? Living Trusts can either be revocable or irrevocable. Since you can designate yourself as the Trustee, Revocable Living Trusts let you modify or revoke the Trust anytime. For example, you can remove a Trust beneficiary or include other heirs even after you set up a Trust. You can also change which Trust funds go to which beneficiary of a Trust, and how you want the successor Trustee to administer your estate and make distributions when you die.

This isn’t the case for an irrevocable Trust. After naming Trust beneficiaries, you won’t be able to change who can inherit the assets and property in a Trust account without getting their permission. Since you need to transfer ownership of assets and property in Trust and you can’t appoint yourself as the Trustee of an irrevocable Trust, you no longer have full control over the Trust.

We can help you choose the types of Trust that best fits your needs, whether it’s for avoiding probate, asset protection, or dealing with estate taxes.

HOW DO YOU CREATE A TRUST? If you’re ready to set up a Trust, the first step is collecting the relevant Trust documents. Take inventory of your personal property and assets you want to be held in Trust. Note that you may need to contact your bank and update your life insurance policies after you established a Trust.

The next step in setting up a Trust is to decide which family member (such as a surviving spouse, children, and grandchildren) or loved ones you wish to name as beneficiaries. You also need to assign Trustees who’ll be responsible for distributing your estate. Lastly, you should lay out specific instructions for Trust administration and tax liability

DO I NEED A LAWYER? As you get older, it becomes more and more important to have measures in place in the event of death or incapacity. Having Trusts and Wills as part of your estate plan helps you protect your family’s future. We can provide legal assistance in establishing a Trust and ensure that your estate plan protects your family, assets, and wealth. Contact us at 253.858.5434 to get started on your estate plan today!

What happens if you die without a Will, like Jimi Hendrix did in 1970? More than 50 years later, the bitter battle over his estate rages on.

Jimi Hendrix died without a Will in 1970, leaving behind an estate that’s currently valued at more than $160 million. And now, more than five decades later, the bitter battle over its control rages on, as the Hendrix Estate is suing the heirs of Jimi's bandmates over alleged royalties and copyright issues.

This is a prime example of what could go wrong when people die intestate (i.e., without a Will). It leaves your loved ones vulnerable, and more often than you'd think, you’ll have all sorts of people coming out of the woodwork to make a claim.

You don’t have to be a wealthy celebrity to have a Will. If you have any assets that matter a great deal to you, it’s always better to decide while you’re still alive who should get them. If you don’t, then state law steps in after your death to decides who gets what share of your estate. This is going to involve lawyers, judges, lots of money, lots of time, and the probate process.

WHAT DOES PROBATE MEAN? Probate is a legal term that refers to the process of proving a Will. It means making sure that the deceased’s estate is distributed fairly among the rightful heirs, whether or not there was a Will left behind. If there was no Will left behind, the process must go through probate court to decide how the assets will be distributed among the deceased’s loved ones. For smaller estates, the probate process doesn’t usually take long. The matter can be concluded in a matter of months. However, probate for bigger estates can takeyears, especially when individuals with legitimate claims to the property and assets file petitions in court to contest the Will. So, as you can expect, this could end up dragging out the process even longer.

WHAT DOES A PROBATE LAWYER DO? Probate lawyers wear many hats. The exact role they play in a probate process ultimately depends on whether or not the decedent had drafted a Will before their death. Here’s what a probate lawyer does in both instances.

THE ROLE OF A PROBATE ATTORNEY WHEN THERE’S A WILL. If an individual dies testate (i.e., with a valid Will), the concerned parties may retain a lawyer in an advisory role to offer guidance to the concerned parties. These include the beneficiaries or the estate's Personal Representative. For instance, the attorney may inspect the Will to check that it wasn’t created under duress or in a way that would contravene the interests and wishes of the person. This is particularly important if the decedent was elderly and suffered from dementia.

THE ROLE OF A PROBATE ATTORNEY WHEN THERE’S NO WILL. If an individual dies intestate, the decedent’s estate is distributed among the rightful beneficiaries according to the intestacy laws in the state where the property is located. Although these laws vary widely, in most states, the surviving spouse receives all the property. In such instances, an attorney may be hired to help the Personal Representative in the distribution of the assets according to the state laws. Keep in mind that regardless of what the deceased’s wishes were or the needs of the family members, the lawyer can only act within the confines of the state’s intestacy laws.

OTHER ROLES OF A PROBATE LAWYER. Aside from that, a probate attorney also helps the Personal Representative to:

* File the Will with the Court and make sure appropriate Letters Testamentary or Letters of Administration are issued.

* Give proper notice to all interested parties.

* Settle the deceased’s bills and debts.

* Collect and manage life insurance proceeds.

* Determine whether the estate owes any taxes.

* Find and secure all the deceased’s assets.

* Get the decedent’s assets appraised

WHEN DOES AN ESTATE HAVE TO BE PROBATED? Contrary to what you might believe, not every estate has to go through the probate process. It is only required when there are no other means through which the decedent’s property can be transferred to the estate heirs. If the individual had taken steps to distribute the assets before death, the estate doesn’t need to be probated. For instance, life insurance policies and retirement accounts usually have a designated beneficiary. These go directly to them on the death of the principal, subsequently bypassing the probate process.

The same goes for bank accounts with a TOD (transfer on death) or POD (payable on death) beneficiary designation and jointly owned assets with survivorship rights. In the latter, the surviving owner automatically inherits the deceased’s share of the property or asset.

In case you’re wondering how to avoid probate, here are three easy steps you can take:

* Name beneficiaries on all the accounts that you own. These include bank, brokerage, retirement accounts, and life insurance policies, and pension plans.

* Create and fully fund a Revocable Living Trust that leaves your assets and property to your beneficiaries upon your death. This allows for asset distribution without getting the courts involved.

* Hold your property jointly with your spouse or partner. That way, ownership automatically passes to them upon your demise.

GET LEGAL HELP. If you were named the Personal Representative of an estate, or a loved one died without a Will, you need to get in touch with an experienced lawyer as soon as possible. They’ll hold your hand through the entire process to ensure that the decedent’s estate is distributed fairly among the rightful beneficiaries. If you have any legal questions, give us a call at 253.858.5434 to set up an appointment today.