Placing assets in joint tenancy with rights of survivorship might be convenient and appropriate for some families, but there are some pitfalls to joint ownership as well.

Parents are often tempted to place their property in joint tenancy with one or more of their children. Because the child becomes a co-owner of the asset, the child can have easy access to the account to help the parent pay bills and manage the asset. Further, at the parent’s death, the asset automatically passes outright to the child. While this type of ownership might be convenient and the appropriate way to go for some families, it is essential to realize the potential pitfalls that come with joint ownership. Sometimes convenience comes at a high price.

WHAT IS JOINT TENANCY? First, let’s have a precise definition. Joint tenancy or "Joint Tenants with a Right of Survivorship" is a form of ownership. In this ownership, two or more persons own property, such as real estate or a stock account. During these owner’s lifetimes, they each own 100% of the asset, so that when one joint owner dies, the survivor still retains their 100% ownership interest.

THE DOWNSIDE. Putting your child’s name on your asset as joint tenant makes them a co-owner. As a result, you open the asset up to avoidable attacks and potential family conflicts. Let me give you a list of potential pitfalls of making your child a joint tenant with a right of survivorship:

* Matter of Convenience vs. Intent to Make a Gift: Much litigation arises from placing accounts in joint tenancy. The problem comes when the parent dies and the child who is joint tenant exercises the ability to claim the account. The child refuses to share with the other children. Meanwhile, the other children say the joint tenancy was merely for convenience. The other children say the parent wanted the asset divided equally, not to pass only to the one child.

Who is right? Only the dead parent knows, and the parent is no longer around to tell us the answer. Now the matter ends up in court. A judge listens to both sides. The judge then decides if the deceased parent created the joint tenancy for convenience or as a method to get the surviving joint tenant all the assets at death. This litigation is expensive and tears the family apart.

* Child’s Creditors: Making the child a joint tenant gives the child ownership rights. The child’s rights are now equal to the parent’s. While the child can now help with writing checks or making investments, the child’s creditors can now claim against the account for unpaid debts. The problem only gets worse if the child should ever file for bankruptcy.

* Child’s Access: Because the child is a co-owner, the child has complete access to financial accounts. We don’t like to think about it, but sometimes children can have problems. You've heard stories. Children empty a parent’s accounts because of mental health problems, gambling, and debts. Because you gave the child complete access to your account as co-owner, the child could spend all the money. You will have no recourse against the bank.

* Child’s Spouse: By giving the child account ownership, if the child divorces their spouse, the jointly held property could end up being drawn into the divorce litigation. The unexpected result is causing the parent unexpected expense and stress. Instead, the smart parent sets up protective Trusts protecting the inheritance from a child’s ex spouse.

* Thwarting the Will: The parents may have a well-drafted Will created by an experienced estate planning lawyer. The Will might create Trusts for the child to help shelter the parent’s gift to the child at death from the child’s creditors and spouse. By putting the asset into joint tenancy, this property instead passes directly to the child outside of the Trust, thwarting a well-crafted estate plan.

ALTERNATIVES TO JOINT TENANCY. Rather than using a joint tenancy, other options might address your goals while precluding the problems and pitfalls associated with a joint tenancy.

* Powers of Attorney. Rather than using joint tenancy with a right of survivorship, your lawyer can craft a power of attorney. This power of attorney gives the child the potential to assist the parent with the property. Most of these will be general powers of attorneys, granting the child broad powers to address a broad spectrum of matters. You could also have your lawyer prepare a special power of attorney with very narrow terms addressing only one issue, e.g., writing checks on one of your checking accounts. Most financial institutions also have preapproved special powers of attorney, crafted to apply only to that institution’s accounts.

A power of attorney makes your child your agent, but as an agent, your child’s spouse and creditors have no controls over your accounts. Should your child get divorced or file for bankruptcy, a power of attorney gives their spouse and creditors no authority to access your assets.

* Revocable Living Trust. Revocable Living Trusts are trusts created during your life into which you place your property. Generally, they are designed to avoid probate, but can also help a parent in need of a child’s assistance. The child can be made a co-trustee along with the parent. Thus, the parent maintains control, but the child can step in to help. Because the assets are owned by the parent’s Trust, not by the child as a joint owner, the child’s creditors and spouse have no claim to trust assets.

While joint tenancy with a right of survivorship is a valuable tool for estate planning, use this power wisely. Recognize potential complications. Developing an estate plan requires that your lawyer understand how you own all your property. Only then can your plan avoid being unexpectedly thwarted outside of the Will.

If you have more questions about Wills and estate planning, let us help walk you through the confusing process. We are ready to answer your questions. Feel free to contact our office at 253.858.5434 to set up an appointment today.

Sustaining an injury as a result of someone else's negligent actions can negatively impact your life in many ways. We can help you pursue fair and just compensation.

Sustaining an injury as a result of someone else’s negligent or reckless actions can negatively impact your life in many ways. Suddenly, you’re focusing on making a physical recovery while costly medical bills start to accumulate. Your injuries may be severe enough to prevent you from working, resulting in a loss of wages or income. Fortunately, Washington allows you to pursue compensation for these injuries by filing a personal injury claim. In most cases, a settlement is reached through a series of negotiations.

FIRST STEPS TO TAKE FOLLOWING AN AUTO COLLISION. It’s critical that you refrain from admitting fault or even discussing the incident with the other involved parties at the scene. While you’ll need to exchange important contact and insurance information, do not talk about the collision itself. It’s a good idea to contact the police so that an incident report can be created, which will provide an impartial account of the crash. Then, contact your insurance company to inform them of the collision. The sooner you contact them, the more time they will have to investigate.

WORKING WITH YOUR INSURANCE COMPANY. Washington drivers are required by law to carry a basic amount of insurance. When you sign a policy with an insurance company, you agree to inform them of any collisions and to cooperate in the subsequent investigation and processing of claims. If you fail to uphold your obligation, you could face higher premiums, policies that cannot be renewed, or even the cancellation of your policy. It’s also important to notify your insurance company right away so that you can tell your side of the story. If the other driver decides to take legal action against you, it’s best to have a record of your version of the events and to have given your insurance company ample time to investigate.

NEGOTIATING A SETTLEMENT. The sooner you reach out to an experienced lawyer following the collision, the more prepared you’ll be to successfully navigate the claims process. Your lawyer will help you understand your options for pursuing compensation from your insurance company, the other driver’s insurance company, or from the at-fault driver. For the most part, insurance companies strive to avoid going to court. They are usually willing to negotiate a fair settlement before a lawsuit is filed. However, it may take a bit of back-and-forth discussions between your lawyer and the other party before a settlement is reached. For instance, your lawyer may draft a demand letter requesting a specific amount, and the other party may reply with a lower offer. You’ll then go from there until you reach an amount that you find acceptable. In some cases, the other party may not cooperate, and you and your lawyer can decide whether to take your case to court.

If you or a family member have been injured in an auto collision through no fault of your own, give us a call at 253.858.5434 to set up an appointment for a free initial consultation today.

In the next 30 years, about $40 trillion will pass from the Baby Boomers to Gen X'ers and Millennials. We counsel clients on long-term multi-generational estate planning.

In the next 30 years, approximately $40 trillion will pass from the baby boomers to Gen X'ers and millennials. Given this sizable transfer of wealth, we as lawyers must be equipped to counsel not only our existing clients, but also our clients’ children, grandchildren, and even parents. This is where multi-generational estate planning comes into play.

Identifying estate planning and wealth transfer planning opportunities goes beyond the basics and into clients’ long-term goals with regard to their families.

It helps to create a multifaceted plan that considers:

* Estate planning, including wealth transfer and legacy concerns

* Tax planning

* Charitable goals

* Retirement plan success

* General financial planning (e.g., analysis of the family’s assets, net worth, sources and types of income)

* Business succession planning

As estate planning lawyers doing multi-generational planning, we frequently need to go beyond the basic Wills and other estate planning documents and talk about each client’s wishes, as well as their intentions for the future. We gather a great deal of information, including insight into the client’s family dynamic through a series of simple exchanges and conversations.

In order to get an estate plan started we ask our clients to consider the following:

* What do I want to leave behind?

* How do I want my wealth to affect my children’s lives? My grandchildren’s lives?

* What degree of control do I want after I’m gone?

Some of the common estate planning techniques for transferring assets or wealth to other generations includes some non-conventional methods such as family limited partnerships and other family business entities, complex irrevocable Trusts, and lifetime gifting strategies. We are equipped with the knowledge and experience to recognize the facts that fit a planning opportunity, educate each client on the strategy, and further suggest how a sophisticated money-saving technique or strategy suits a client’s plan.

Helping our clients explain what will happen with the estate to the beneficiaries is an important but somewhat overlooked part of where we add value during the estate planning process. Talking about death and money issues isn't everyone's favorite topic. So having a lawyer help families navigate these waters is extremely beneficial for most families and something that we have found helps put everyone's mind at ease. Many people don't fully understand how money or property gets distributed from a Trust or during the probate process. We can answer some of those questions on the front end and help alleviate any tension or angst among family members.

If you have estate planning questions or want information about transfer your wealth or family business to the younger generations, 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.

Everyone needs an estate plan -- it is a set of legal documents that give you control over what happens to your family and your assets if you become disabled or die.

The birth or adoption of a child, marriage, separation, planning for retirement, pandemic, or vacation away from the kids are some of the reasons people choose to make an estate plan. An estate plan is for everyone – it is a set of legal documents that give you control over what happens to your family and your assets if you become disabled or die. The process will give you peace of mind that you and your loved ones will receive proper care and assistance in the event of your death or incapacity.

Every family and individual can benefit from planning for the disposition of their property using a variety of legal tools, including Wills and Trusts. Families with minor children should have documents in place that appoint a guardian and create a children’s Trust to care for their children’s needs.

But estate planning is not just about what happens to your property upon your death. A health care directive and power of attorney can help you make your wishes regarding end-of-life medical treatment effective and designate trusted people to carry out your financial and health care decisions in the event that you are unable to do so yourself due to incapacity or disability.

An estate plan attempts to eliminate uncertainties in the administration of one’s probate and end-of-life decisions as well as to maximize the value of an estate by reducing taxes and other expenses. An estate plan is an excellent way to put your values into action with charitable intent.

Our goal is to educate you regarding the tools available for estate planning, and to help you put your plan in place. We provide estate planning legal representation on a flat fee basis. Flat fees allow you to know what the cost will be ahead of time. After we've had a chance to meet and discuss your goals, needs, assets, and family circumstances, we will advise you as to which documents we recommend for your plan and you will know at that time exactly how much will pay in legal fees.

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.

One of the questions we've been asked most often over the years by nonprofit leaders is, "Why should my nonprofit or church hire a lawyer?"

One of the questions that we have been asked most often over the years by nonprofit leaders is, “Why should my nonprofit or church hire a lawyer?" While we are (obviously) biased in our answer, we can confidently elaborate on numerous reasons why a nonprofit should have an active relationship with a lawyer knowledgeable about nonprofit matters.

Far too many nonprofit organizations and churches simply ignore legal issues altogether or at best attempt to rely on a board member who happens to be an attorney (even if that attorney practices in an area wholly unrelated to nonprofit law). Too often, nonprofits and churches forgo reaching out to qualified legal counsel for fear of the cost involved. This inevitably leads to unresolved legal issues that end up costing the organization more time and even more money later on, thus taking away from the organization's overall ability to achieve its mission. Here a just a few reasons why your nonprofit or church should consider hiring a lawyer:

FORMATION. When starting any nonprofit organization, there are a combination of state and federal laws to be followed, many forms that need to be submitted, and several documents that must be drafted, all before your organization is operational. Your new nonprofit may want guidance with filing, understanding categories of tax exemption, creating a corporate purpose statement, drafting a budget, and dealing with the IRS. Applying for tax exempt status with the IRS via Form 1023 is a long and complicated process. A knowledgeable lawyer can make this process smoother and allow the founders to focus on the important tasks of building the organization's programs, fundraising, and staffing.

REORGANIZATION. If your nonprofit or church is considering restructuring or using an alternative entity structure, you may be tempted to do this yourself. After all, creating corporation online is super easy, right? That is certainly true, but a tax exempt organization's use of partnerships, corporations, and LLCs can sometimes create unintended consequences and unforeseen problems. Likewise, mergers, acquisitions, and dissolutions can present surprising complications.

REINSTATEMENT. Most states, including Washington and Idaho, require annual reports to be filed with the state in order to remain in good standing. If your nonprofit has lost its active status, reinstatement is required. This requires paperwork and payment of fees. Similarly, if an organization fails to file its annual Form 990 with the IRS for three consecutive years, that organization's 501(c)(3) status will be automatically revoked. When that occurs, the clock starts ticking and the organization has a relatively narrow window to get its tax exempt status reinstated retroactively.

TAX EXEMPTION. Even once you have obtained tax exempt status, a knowledgeable lawyer can help you maintain that status. Few organizations lose their tax exempt status because of something they intentionally did—quite the opposite, most organizations that lose their status do so because of an unintentional failure to follow the sometimes complex rules and regulations the IRS has in place for tax exempt organizations. Counsel from a competent lawyer can help prevent these inadvertent violations of IRS compliance.

BOARD GOVERNANCE. A nonprofit's Board of Directors or Board of Trustees is tasked by the state and the federal government with the authority and responsibility to oversee and govern the organization, ensuring that its assets are used exclusively to further the organization's tax exempt purposes. This governance responsibility is multi-faceted and is comprised of compliance with laws at both the state and federal level. An experienced lawyer can help the Board navigate these issues, while also serving as a strategic advisor on other non-legal questions facing the Board. A lawyer can also serve as a mediator in times of conflict between Board members or between the Board and the Executive Director.

EMPLOYMENT ISSUES. Perhaps the most significant litigation risk to nonprofits is in the area of employment law. Whether it is compliance with state labor laws or federal antidiscrimination statutes, employment law for nonprofits is a complex web of interrelated laws that are highly dependent upon individual circumstances. From hiring to firing, a knowledgeable lawyer can help nonprofits make appropriate employment decisions that protect the organization and its employees.

DOCUMENT DRAFTING AND REVIEW. Nonprofits of all sizes deal virtually daily with what may be the most common legal issues they face: contracts and other formal documents. Even small organizations have to regularly deal with contracts from internet service providers, independent contractors, or other vendors. These contracts are often poorly written in difficult to understand language, so many nonprofit leaders often sign the documents without an in-depth review. Similarly, when a nonprofit needs to draft some sort of contract, it often resorts to searching the internet for a template. Both of these situations put the organization at a disadvantage and potentially cause an unnecessary expenditure or waste of organizational resources. A lawyer can review contracts presented to the organization and highlight areas of concern as well as areas for potential negotiation, often saving the organization money or shifting some of the liability to the other party. Likewise, a lawyer can draft an accurate contract that best accomplishes the organization's goals.

INTELLECTUAL PROPERTY. Though intellectual property often permeates throughout even small nonprofits, including in logos, websites, music, film, software, graphic design, and more, intellectual property is often one of the most neglected legal issues in the nonprofit sector. Many nonprofit leaders are shocked to learn just how much IP their organization has created, and often even more shocked at some of the default rules that govern that IP, such as the work-for-hire doctrine in copyright law. Establishing a relationship with a lawyer knowledgeable about the peculiar aspects of IP law that apply to nonprofits is a critical step in protecting one of the most important assets a modern nonprofit organization has.

OUTSIDE GENERAL COUNSEL. Finally, nonprofits and churches face all kinds of random legal questions on a regular basis. Having an active relationship with a lawyer allows an organization to effectively handle those questions and ensure the organization's tax exempt purpose is not threatened by the legal issues that arise.

LET US HELP. While having a full-time in-house attorney may not be realistic for your organization, getting the occasional outside counsel from a lawyer is much more realistic than you might think. At our law firm, we focus on the success of nonprofits and their missions. Our experience in the nonprofit sector gives us a unique insight into the challenges you face, and we are committed to assisting nonprofits in a way that is sustainable and approachable for organizations of all sizes. Whether you need legal counsel daily or just have a legal question a few times a year, we can advise you on the law and best practices for nonprofits.

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

Estate planning is important for new parents. We recommend that all parents of minor children have a properly executed estate plan in place.

As a new parent, you’re focused on your new baby and with so many things to do, estate planning for new parents is easy to dismiss. You may have already charted the course of your child’s life, but have you considered what could happen if you can’t be there for your child?

New parents may feel uncomfortable at the thought of not being around for their little one or not being able to care for them. Despite the difficulties, don’t put off this essential step in safeguarding your child’s future. We recommend that all parents of minor children have a properly executed estate plan. Estate planning is important for new parents because, without a plan, a judge may step in to make decisions that aren't necessarily what you would want. The right time to think about estate planning, if possible, is now, while you still can.

You may wonder how to set up your estate plan. Whether you choose a Will or a Revocable Living Trust, these tools outline how you want your child (or children) to be cared for and how to distribute your assets upon your death. We can help you consider which documents suit your situation.

Among the issues to think about in your estate planning are:

GUARDIANSHIP – In case something happens to both you and the other parent, you should choose a guardian to raise your child. The guardian will care for and support your child and make all necessary legal, medical, and educational decisions. Ideally, they will have good character and share your values and parenting style.

INHERITANCES – By creating a Trust to hold your child's inheritance, you can control what your child will receive and when. Typically, without a Trust, this will happen when a child turns 18, but you may want to choose a different age when you think your child may be mature and financially responsible enough to handle an inheritance. If you will use a Trust, you can appoint a Trustee — the guardian or another person — to manage your your child's assets while your child is underage.

YOUR AGENT AND ATTORNEY-IN-FACT – A Durable Power of Attorney lets you name who you want to act on your behalf — often in financial matters — in case you become incapable of doing so. Similarly, a Health Care Power of Attorney designates someone to make medical decisions for you if you can’t do so yourself. When you pass away, a Power of Attorney is no longer in effect. But your Personal Representative, if you have a Will, or your Trustee (as outlined in a Revocable Living Trust) will represent you on behalf of your estate.

FUNERAL ARRANGEMENTS – You can specify your final wishes. If you don’t, a court could assign the duty to your next-of-kin.

When you consider a guardian or an agent, the person should be willing, healthy, trustworthy, and capable of handling the responsibility. Talk to your top choices to find out how they feel about taking on these roles before you put your desires in writing.

Once you’ve planned for your estate, you and your family will be on the way to a more secure future.

New parents are often busy. You don’t have to plan for your estate yourself. Let us advise you on the right course to take. To discuss your needs, contact us at253.858.5434 today. We represent clients throughout Washington and Idaho and are available to meet in person, by phone, or via video conference.

When you're looking for a personal injury lawyer, you want to make sure you end up with the right person for you and your case. That expectation works both ways. So what's a "good client"?

When you're looking for a personal injury lawyer, you want to make sure you end up with the right person for you and your case. And that expectation can work both ways. Every lawyer wants a "good client" if at all possible. But what is a "good client," and how much of being a "good client" is actually within the client's control?

In a nutshell, a good client does whatever is necessary in order to ensure that the case goes as smoothly as possible, and that the best outcome (a fair personal injury settlement, or a win in court) can be reached. That means:

1. RESPOND TO YOUR LAWYER. Clients get pretty upset when their lawyer doesn't return phone calls or emails. And lawyers feel the same way. If you don't return your lawyer's phone calls, emails, or letters promptly, you're not just wasting your lawyer's time, you could also be hurting your case.

2. ATTEND ALL MEDICAL APPOINTMENTS. Your health care provider will note any appointment that you miss, and, if you miss too many, the insurer adjuster (or the jury) is going to assume that you must not have been hurt as badly as you claim. This will cost you money. Be sure to keep all of your appointments.

3. COOPERATE IN THE DISCOVERY PROCESS. If you end up filing a personal injury lawsuit, the defendant will send your lawyer written questions called interrogatories, as well as requests for production of documents. Your lawyer will send these on to you. You will need to promptly answer the interrogatories and provide your lawyer with the requested documents, or your case could be dismissed. Help your lawyer and help yourself. Respond to all discovery as quickly as you can.

Practice for your deposition. Your deposition is a very important step in your case. Your lawyer is there to help you prepare, to offer guidance during the proceedings, and even step in if the other side is taking a questionable approach. Follow your lawyer's advice and recommendations.

4. DON'T (ALWAYS) BLAME YOUR LAWYER. Clients who are annoyed that their case isn't going well will often turn on their lawyer and say that it must be the lawyer's fault. Some things are indeed a lawyer's fault, and any client needs to be attuned to that. But some problems that arise in personal injury cases are the client's fault, and other obstacles are no one's fault. Some personal injury cases just aren't that strong (meaning there's little or no chance of reaching a favorable outcome). Don't blame the messenger if your lawyer brings bad news. It's not going to help your case.

For many lawyers, whether they'll admit it or not, the perfect client is one who does what they are told and doesn't hound the lawyer for updates at every turn. But it's not in most clients' best interests to try to live up to that model. There are times that you have to speak up.

If you sincerely believe that there are problems in your case, you can't always be the "good client." You have to ask questions. Remember that it is your case, not your lawyer's. You are the one who was hurt. You have an absolute right to be kept informed about what is going on. It may seem like you are being pesky by asking pointed, probing questions about your case, but you need to protect your interests by staying informed.

If you or a friend, family member, neighbor, or coworker has been injured and needs legal representation, give us a call at 253.858.5434 to schedule a free consultation today.

Estate planning doesn't have to be boring, and much of it can be pretty interesting once you understand the benefits. Ensure your family is protected by preparing your estate plan today.

You may have heard the phrase, “Nothing is certain except death and taxes." We should probably plan for both right? Estate planning doesn’t have to be a boring topic, and much of it can be pretty interesting once you start to understand the benefits. You have nothing to lose but many benefits to be gained through solid estate planning–by securing all the assets you’ve worked hard to gain in your life.

Fewer than half of all Americans have a Will. Astonishingly, just about 1/3 of all adults with minor children under 18 have created a Will or Revocable Living Trust for themselves. Secure your assets and ensure that your surviving family members are protected by preparing your estate plan today.

WHAT IS AN "ESTATE"? Let’s take a few steps back here just to be certain that we’re comprehending the actual definition of an estate. Fundamentally, your “estate” is how the legal system views the overall value of your net worth. Your estate may include any of the following:

* Investments

* Bank Accounts

* Cars, boats, RVs, and planes

* Houses and other real estate

* Personal belongings

* Life insurance

In a nutshell, your estate is comprised of everything you currently own as well as all your current debts.

YOUR ESTATE PLAN. Your estate plan is assembled from several different legal documents. Each one of these documents serves an important purpose. An estate plan can include everything from setting up a Trust to designating a power of attorney. The goal of estate planning is to save and secure all the important assets you’ve worked hard to amass over time. Naturally, the objective is also to bring down the costs you’ll pay in taxes, legal expenditures, court fees, and many other types of expenses too.

Here are some of the more common estate planning documents:

LAST WILL AND TESTAMENT. The most critical portion of your estate plan is your Will. In this document, you specify in detail how your assets are divided, who will be the guardian of your children, and who is designated to carry out your wishes. Please also understand that your Will will only be relevant after you die. It doesn’t offer any protection at all if you become physically or mentally incapacitated.

DIRECTIVE TO PHYSICIANS ("LIVING WILL"). If you’re in a condition where you’re unable to make decisions on your own, a Directive to Physicians can help establish your wishes. For instance, you may become hospitalized in a comatose state in which your abilities are gravely limited. If you have strong beliefs about when or when not to receive resuscitation or life-sustaining care, you could indicate these wishes within your Directive.

POWER OF ATTORNEY. Most people prefer to appoint a trusted relative or close family member to make decisions on their behalf. This is known as power of attorney. Generally, you would name a spouse, family member, or close friend to address your affairs when you’re unable to do so.

There are many distinct types of powers of attorney that vary in scope, length, and circumstances. It’s significant to note that you can grant health care power of attorney and financial power of attorney to different individuals if you’d like. It also goes without saying that you had better trust your power of attorney with your life!

REVOCABLE LIVING TRUST. A Revocable Living Trust Agreement is a legal document that places your assets into a Trust during your lifetime. Upon your death, it is transferred to your designated beneficiaries.

The biggest benefit of creating a Living Trust is it will help you avoid the expense and time of the probate process. It can also help things run a lot smoother in general, as your beneficiaries can receive their inheritance faster and with less hassle.

FOUR THINGS TO REMEMBER:

NO WILL. If you die in Washington without having completed your Will, the court will appoint an administrator to allocate your assets) according to Washington succession laws. These are laws which give control of your assets to your “closest” living family or relatives. We highly recommend that if you care about what happens to your assets when you die, make sure you do the prudent thing and create a Will!

PROBATE. Probate is defined as a court-supervised legal procedure for settling an estate of a person who has died. Luckily for you, Washington has one of the easiest to understand probate structures in the country. Your Personal Representative (as designated in your Will) can act with complete authority and without court intervention in nearly all matters and attorney fees are not based on a percentage of the value of the estate.

TAXES. Washington does not have an inheritance tax but does collect an estate tax. This means that there are no taxes for the recipients of an estate, but it’s possible that there could be some tax on the decedent’s estate itself.

There are many exemptions and thresholds (among other things) that you should be aware of, you should discuss these with your estate planning lawyer as soon as you’re able. In most cases, there is no estate tax owed as a result of extensive tax planning within the decedent’s Will. Just one of the many great reasons to plan your estate!

LAW CHANGES.

Washington state and even federal tax laws are constantly fluctuating. You should review your estate plan periodically to make sure it’s up to date.

HOW WE CAN HELP YOUR FAMILY. It’s normal to feel a bit overwhelmed when starting out with your estate plan. We find that all what most families really need is a lawyer you can trust to provide your family with good advice and representation. We’ll help you navigate the planning process and ultimately help you make the best decisions for your family well into the future. Our estate planning process may include:

* Creating a Revocable Living Trust so that your wishes will be honored.

* Updating your beneficiary designations as needed.

* Reducing federal and state estate taxes through Trusts and gifting.

We will ensure that you gain clarity about your estate plan. Call us today at 253.858.5434 to schedule an appointment to get all your questions answered.

So you've decided to start a new business with one or more other people and you have chosen a business entity. So what's next?

So you've decided to start a new business with one or more other people and you have chosen a business entity. So what’s next? Although bylaws are required for your new corporation, they don’t address important issues that may arise if you have two or more shareholders in your company. One of the first things you should do is to have an experienced lawyer help you create a shareholders’ agreement and other important legal documents associated with your business to make sure your company’s and shareholders’ rights and interests are protected.

WHAT IS A SHAREHOLDERS' AGREEMENT? A shareholders' agreement is a legal document that outlines how a company should be operated and defines shareholders’ rights, liabilities, and obligations. When drafted properly, a shareholders' agreement ensures that shareholders are treated equitably and protects them from certain actions that may be taken by other shareholders and outside parties.

WHAT'S IN A SHAREHOLDERS' AGREEMENT? In addition to outlining the privileges and protections of shareholders and how the company will be managed, shareholders' agreements often restrict a shareholder’s ability to transfer shares to third parties outside the company. Your agreement may also contain the number of shares issued, the fair pricing of shares, each shareholder’s percentage of company ownership, pre-emptive rights for existing shareholders to purchase shares, and specifics on payment if the company is sold.

A shareholders' agreement also explains what will happen to shares should a shareholder die, retire, or decide to leave the company. A shareholders' agreement is often a vital element of small business succession planning and can ensure a smooth and equitable transition upon the death, retirement, or disability of a shareholder.

A shareholder agreement may also address:

* Membership of the board of directors

* Officers of the corporation

* Majority or supermajority voting requirements on certain decisions

* Buy-Sell obligations, options, or rights of first refusal

* Issues surrounding termination and dissolution of a corporation

* Employment agreements for shareholders/employees

* Bonus provisions

* Termination of employment of a shareholder

* Shareholders’ life insurance

* Dispute resolution processes

WHY DO I NEED A LAWYER TO PREPARE A SHARHOLDER'S AGREEMENT? A shareholders' agreement should have both the company and the shareholders’ best interests in mind. As a company grows and changes, conflict may arise, and a shareholders' agreement can help you avoid costly legal battles down the road. Creating this type of agreement without advice from a lawyer may lead to contentious shareholder disputes.

A lawyer will create a contract that helps you understand your rights and responsibilities and ensures that your interests are protected. If you’re a small business owner or shareholder, it’s particularly important to seek the counsel of an experienced lawyer who can help you create bylaws, articles of incorporation, partnership agreements, nondisclosure agreements, and other legal documents that will help your business start off on the right foot and run more smoothly.

From choosing a business entity to creating an effective business succession plan and shareholder agreement, we can help make starting your business a smooth process. Give us a call at 253.858.5434 to set up an appointment today.

Even if your loved one created an estate plan detailing their wishes for passing on assets, there are still legal details to attend to after they pass away.

Even if your loved one created a comprehensive estate plan detailing their wishes for passing on assets, there are still legal details you must attend to after they pass away. We can assist you with the legal matters related to finalizing an estate.

After a loved one passes away, their estate must be administered and finalized. The process involves gathering their assets, paying any outstanding debts, and distributing the remaining assets to their beneficiaries or heirs. These steps can vary depending on what estate planning tools your loved one used.

For example, if the deceased had prepared a Revocable Living Trust and you are named Trustee, you have duties that are partly defined by the Trust, and partly by state law. Trusts do not manage themselves. Despite the promise of saving probate, much of the same work is required of a Trustee as would be of a Personal Representative under a Will. There are notices to be prepared, assets to be inventoried, debts to be dealt with, and items to be sold. The law places a substantial legal duty on a Trustee, which you must be very careful to fulfill in accordance with law.

Probate functions similarly to the Trust administration process, except with judicial oversight. Under Washington’s and Idaho's probate laws, probate may not be necessary, and alternative, simpler processes may be available. In most cases involving real property, however, probate will be required.

For more than 25 years, we have helped family members administer the estates of loved ones in accordance with their wishes and the law. We can assist with various probate and Trust administration matters, including:

* Counseling for Personal Representatives of estates

* Collecting and valuing assets

* Paying debts and creditors

* TEDRA litigation

* Distributing assets to beneficiaries

We recognize how overwhelming and profound grief can be after the loss of a loved one. Let us attend to the legal matters involved in settling your loved one’s estate. Arrange your consultation by calling 253.858.5434.

Did you watch "Modern Family"? Blended families can make for some funny situations on TV, but in real life, they aren't always so close and a well-thought-out estate plan can alleviate some issues.

Did you watch "Modern Family"? It was such a good show! TV dad Jay Pritchett has two grown children and four grandchildren. He also has a second wife, Gloria, who's close to the same age as his kids. He and Gloria have a son of their own, and Jay is also raising a stepson from Gloria's previous marriage.

Jay is at the center of a complicated blended family, which makes for some funny situations on TV. Real life blended families, however, aren't always close and don't always share the same goals and values. When a parent passes away or becomes incapacitated, there's potential for conflict between the surviving spouse and children, and one or all of the parties may feel left out.

The key to minimizing these issues is a well-thought-out estate plan. Here are some strategies that blended families can use.

SETTING UP A TRUST. Married people commonly leave everything to each other in their Wills. If you die first, your spouse will own all your property outright. The issue for blended families is that your husband or wife may, over time, decide not to leave anything to your children from a previous relationship. It's easy to imagine Gloria remarrying, living 40 more years, and leaving her estate to her husband and two children—not to Jay's adult kids and grandkids whom she hasn't seen in decades.

One way to provide for your spouse without leaving out your kids is to place some or all of your money and property in a Trust that your spouse can use during their lifetime. Then, when your spouse dies, everything in the Trust can go to your children.

You must choose someone to be Trustee of the Trust after you die. Your spouse and kids may have competing goals that will lead to family conflict. Many experts recommend picking a neutral Trustee, such as a bank or professional fiduciary.

If you set up a trust for a young spouse like Gloria, your kids probably won't receive anything for many years and, unless your estate is quite large, there may be nothing left. You may want to designate your children as beneficiaries of your retirement accounts or life insurance policies to give them an immediate inheritance.

RETIREMENT ACCOUNTS AND LIFE INSURANCE. Life insurance is another way to provide for a complex web of family members. You can, for example, leave most of your money and property to your spouse, but provide for your children by taking out a life insurance policy that names them as the beneficiaries.

Life insurance and retirement accounts like IRAs and 401(k)s aren't passed down through your Will, but instead go directly to the primary beneficiary you have named—even if your Will says otherwise. If you're divorced, make sure you've updated your beneficiaries so your retirement savings don't end up in the hands of your ex.

LIVING WILLS AND POWERS OF ATTORNEY. As part of any complete estate plan, you should have a document explaining your wishes if you become terminally ill (which is called a Directive to Physicians and commonly known as a "Living Will"), a Healthcare Power of Attorney designating someone to make medical decisions on your behalf if you are unable to do so, and a Durable Power of Attorney naming someone to handle your financial affairs if and when you no longer can.

People often name their spouse, but in a blended family this sometimes leads to hurt feelings and arguments over what mom or dad would have wanted. Whether your family is blended or not, it's always a good idea to choose someone who is level-headed and able to get along with other family members. And, to prevent surprises, let everyone know about your plans and wishes in advance.

WHAT IF I DON'T DO ANYTHING? If you don't make any estate plan, the money and property that would ordinarily be handed down through your Will will be divided according to the state's intestacy laws. This means that you won't have any say over how your property is split among your spouse and your children. And it's likely that your stepchildren won't inherit anything.

If your family looks more like “Modern Family" than “Leave It to Beaver," then a blended family estate plan can provide for both your spouse and your children, while also minimizing opportunities for conflict and stress after you're gone. If you are in need of legal advice and representation regarding your estate plan, give us a call at 253.858.5434 to set up an appointment today. We represent clients throughout Washington and Idaho and are available to meet in person, by phone, or via video conference.

It's important to be honest with your lawyer and to cooperate in your legal case. Here are 5 things your lawyer should know during your personal injury case.

Working with a lawyer can be intimidating, but it doesn't have to be. A good lawyer will make you feel comfortable and respected. The attorney-client relationship is important. It means that each party should be honest with the other, and work to share all necessary details of a case together. If you are honest with your lawyer and tell them everything they need to know, that is more information they can use to make informed decision during the case process - which benefits everyone involved. Remember, part of the attorney-client privilege is confidentiality. Anything confidential you tell your lawyer is protected, and they cannot share it with anyone.

Here are five things that your lawyer should know during your personal injury case. These are all things that can affect a lawyer's strategy during the personal injury claims process, and therefore should be discussed as soon as possible.

(1) Tell your lawyer about any previous injuries you've suffered. An insurance adjuster attempting to deny the claim might say that your current injuries are related to past injuries or incidents, not the most recent incident, so your lawyer needs to be able to dispute this.

(2) Tell your lawyer about your criminal history. Usually, any misdemeanors or felonies will not affect your case (unless they are related to driving) but they could come up during trial, as insurance company lawyers run background checks, and you need your lawyer to have all the information that opposing counsel has in order to be prepared.

(3) Tell your lawyer if you have filed for bankruptcy. If you file during your personal injury case, your settlement could become part of the bankruptcy estate (i.e. you won't get the money, your creditors will). But if you tell your lawyer, they can work with your bankruptcy lawyer to hopefully secure a portion for you.

(4) Tell your lawyer if you have filed or are about to file for divorce. If your spouse was supporting you after your injury, for example, they might be entitled to part of the damages you recover. In which case, the lawyer can ensure that they also receive fair compensation.

(5) Tell your lawyer if you have suffered any injuries SINCE your collision. Opposing counsel might try to claim that you are attempting to secure compensation for injuries unrelated to the present claim you have filed. In which case, your lawyer will need to be able to dispute this.

Working with a lawyer can be extremely helpful during a personal injury case, because the claims process can be complicated. But a lawyer can only do so much without the full willing cooperation of the client. If you have a personal injury case, be sure to keep your lawyer updated as much as possible.

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.

Divorce can be overwhelming. There are a lot of decisions to make and seemingly endless paperwork to get done - including updating your estate plan.

Divorce can be overwhelming, as anyone who has gone through it knows. Once the decision to go separate ways has been made, there are more decisions and seemingly endless paperwork—separating and retitling assets, selling or refinancing your home or relocating to a new one, custody issues if there are minor children, and college expenses for older children. These tasks and more must be completed to be able to move on with your lives. Often overlooked, but just as important, are changes that need to be made in your estate plan. Most people would agree that their former spouse is the last person they want to inherit their assets when they die—or to have that person make life and death decisions for them. But that is exactly what can happen if these documents are not updated. While some states (like Washington) do have provisions designed to keep a former spouse from inheriting from you, they vary greatly by state and they do not apply to all of your assets. You should not rely on the state laws alone, as laws change and, depending on your situation, they may not apply to you. The only way to be sure your assets will go to those you want to have them is to update your estate plan—and the sooner the better.

BENEFICIARY DESIGNATIONS. Assets that let you name a beneficiary (life insurance policies, employer retirement plans, IRAs, annuities, health savings accounts, investment accounts, bank accounts, etc.) are not controlled by a Will or Trust. Instead, they will be paid directly to the person you have listed as your beneficiary, unless that person is deceased, a minor, or incapacitated when you die (in which case, a court may step in). You probably named your spouse as beneficiary when you were married, so depending on what state you live in, you will need to change that unless you agree otherwise in your divorce agreement. Usually all you need to do is request the appropriate form and list a new beneficiary. However, naming the right beneficiary is critical.

IF YOU HAVE CHILDREN. If you name your children as beneficiaries and they are minors when you die, a court-supervised guardianship must be established for them until they reach 18—at which time they will receive the entire inheritance. At that age, they may decide to spend the inheritance on an expensive sports car and fun times instead of on their college education. The other parent (your former spouse) could be named by the court to manage the funds while your children remain minors.

Naming another individual (for example, your parent or sibling) as beneficiary with the understanding they will use the money to care for your children until they are older is also risky. You have no guarantee they will follow your instructions, they may be tempted to use the money for their own needs, and the money would be exposed to their own creditors. Depending on the value of the assets, it may also cause the named individual to have negative gift tax consequences.

Naming a Trust as the beneficiary instead and selecting your own Trustee (which may, indeed, be your parent or sibling or a friend) is a much better choice. A Trustee can be held liable if they misuse the Trust assets. You can keep your former spouse from having access, and you can control when your children will inherit. Money that stays in the Trust is protected from irresponsible spending, creditors, and even spouses.

RETIREMENT ACCOUNTS. Naming the right beneficiary is especially important for these accounts because of the tax consequences and the potential for long-term tax-deferred growth. After you die, the retirement account has to be distributed to the beneficiary within five or ten years or, if the beneficiary qualifies for special treatment, the account can be distributed over the beneficiary’s lifetime. This is a very complicated field of tax law and it is important that you consult an attorney before you make any decisions regarding the beneficiary of your retirement accounts.

YOUR WILL AND REVOCABLE LIVING TRUST. If you do not update your existing Will or Trust, your former spouse may inherit your assets. If they have remarried or remarry in the future, your assets could end up with the new spouse and their children—completely disinheriting your own children or family! If you provide support to your parents or others, be sure to include them in your estate plan.

If you have minor children, you need to name a guardian for them in your Will. (Even if you have a Revocable Living Trust, a simple Will is required to name a guardian and to direct any forgotten assets into your Trust.) Upon the death of one parent, the surviving parent will usually become the sole guardian. But if your former spouse has also died, had their parental rights terminated, or becomes an unfit parent, the court would have to appoint a guardian and would appreciate knowing your wishes.

HEALTH CARE POWERS OF ATTORNEY AND DIRECTIVES TO PHYSICIANS. These are medical documents that let you name someone to make health care decisions for you if you are unable to make them yourself. Most married couples name each other. But now that you are divorced, you probably do not want your ex to make life and death decisions for you. You can name a parent, sibling, close friend, or an adult child.

FINANCIAL POWERS OF ATTORNEY. Again, most married couples give each other power of attorney so that one can manage the other’s financial affairs without interruption. These powers are often quite broad, giving this person the ability to buy and sell real estate, open and close financial accounts, change beneficiary designations, collect government benefits, etc. Instead of your former spouse, you can name a parent, sibling, close friend, or adult child.

YOU NEED LEGAL ADVICE. If you have recently gone through a divorce, you may feel you have had enough of lawyers for a while. But you need an experienced lawyer more now to help you with updating your estate plan than you did when you were married. Do not procrastinate on this. Make sure you protect yourself, your children, and others who depend on you. If you have a complicated divorce agreement, it is especially important that you first consult an estate planning attorney before taking any actions over your assets. Not doing so could mean making a costly mistake where you violate the divorce agreement and possibly lose control over some of your property.

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.

We help companies and entrepreneurs manage the contracts that serve as the backbone of their business. We help with contract drafting, negotiations, and contract review services.

We help companies and entrepreneurs manage the contracts that serve as the backbone of their business. Lawyers are critical to making sure our clients stay protected and aren’t put into any relationships that may cause unnecessary risk for their business. We may help with contract drafting, negotiations, and contract review services. If you’re a small business owner and you haven’t had to deal with a contract yet, the day will come when you must do so, and you’ll want an experienced lawyer on your side when it does.

COMMON TYPES OF BUSINESS CONTRACTS. Not only do lawyers make the process of creating contracts and reviewing them easier, but we also offer unparalleled peace of mind when it comes to making business agreements. Here are some common types of contracts that you can count on us to help with:

SERVICE CONTRACTS. Service contracts cover agreements between a you and your customer. If you need help with a form contract to send to customers, we can help.

INVESTMENT CONTRACTS. Investment contracts govern the agreements between you and the people that give you money to run your business. These relationships are essential to the success of your business, so you need to be sure that the contract is mutually beneficial. We can help you create, audit, and even modify existing terms of a contract for the best outcome for all involved parties.

PARTNERSHIP AGREEMENTS. Partnership agreements are the perfect way to enter business with a fellow entrepreneur. However, things can get messy if the roles and responsibilities of each member of the partnership are not set out ahead of time. Taking advantage of a lawyer's advice can help your business run more smoothly by making sure all this information is clearly stated in the contract.

We can also help with:

LLC agreements

Shareholder Agreements

Commercial Lease Agreements - If you need office space, you’re going to need to enter into a commercial lease agreement . Sounds simple, right? Unfortunately, the terms of a commercial lease agreement are wildly different than the rules you may be familiar with from residential versions. We recommend that you get legal representation to help you with commercial lease agreements. The terms involved can get complicated and can end up turning out badly for you without the right guidance.

CONFIDENTIALITY AGREEMENTS. Confidentiality agreements are crucial to many business operations, especially when dealing with proprietary information. We make sure all the bases are covered on these agreements, so you don’t have to worry about your trade secrets getting out.

EMPLOYMENT CONTRACTS. When you bring new employees on board with your company, it’s always a good idea to be sure the right expectations are set from the beginning. Creating an employment contract or employee handbook is a great way to set expectations and create terms and conditions surrounding employment.

If you’re an entrepreneur who uses business contracts, you need an expert in your corner to help you create the best documents for your business. Working with a professional fosters positive business relationships which will help lead your business into success in the future. If we can be of assistance 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.

We create comprehensive estate plans to help individuals safeguard their assets and plan for their future. Whether you need a simple Will, Power of Attorney, or more complex estate plan, we can help.

Planning for your future is a critical element of maintaining financial security and keeping your affairs in order. We create comprehensive estate plans to help individuals safeguard their assets and plan for their future. Whether you need a simple Will, Power of Attorney, or more complex estate plan, we can help. We normally provide estate planning representation on a flat fee basis, with fees beginning as low as $400 for a basic Will. Give us a call and we'll send you our current estate planning fee schedule.

WILLS. A centerpiece of all estate plans is the creation and execution of a Will. In order to be validly executed, the person making the Will must have testamentary capacity and must sign the Will in the presence of two competent witnesses. The witnesses must also sign the document. Wills allow individuals to pass their property on their death to beneficiaries in the manner of their choosing and avoids the state's default rules governing intestate succession. Wills can also be used to set up Trusts to help minimize estate tax and other tax liabilities or to manage assets for minor or special needs beneficiaries.

REVOCABLE LIVING TRUSTS. Many people choose to use a Revocable Living Trust ("RLT") as their primary estate planning instrument. With an RLT, you can transfer your assets to your beneficiaries without a probate and without court involvement in your estate’s affairs.

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

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

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

If you have questions about setting up an estate plan, give us a call at 253.858.5434 to make an appointment today.