"Nothing is certain except death and taxes." So we might as well plan for both. There're nothing but benefits to estate planning and protecting the assets you've worked so hard for.

"Nothing is certain except death and taxes." That's what they say, right? So we might as well plan for both. Planning for the future doesn’t have to be a touchy subject. In fact, there are nothing but benefits to estate planning and protecting the assets you’ve worked so hard for.

Recent studies have shown that less than half of Americans have Wills. Shockingly, only about a third of adults with children under age 18 have a Will or a Revocable Living Trust. Don’t be a statistic. Protect your assets and provide for your family by planning your estate now.

WHAT IS AN ESTATE? Let’s take a step backwards and make sure we’re clear on the definition of an estate. Essentially, your estate is your total net worth in the eyes of the law.

An estate can include:

* Bank accounts

* Stocks, bonds, investment accounts, etc.

* Houses and other real estate

* Cars and other vehicles

* Life insurance

* IRAs, 401k, etc.

* Personal belongings

In short, your estate is everything you own and everything you owe.

WHAT IS ESTATE PLANNING? An estate plan is made up of several different documents. Each document serves a different purpose. Estate planning can include everything from setting up trust funds to designating your Power of Attorney. The goal of estate planning is to preserve and protect all of the assets you’ve worked hard to accumulate. Of course, the aim is also to reduce the amount paid in in taxes, legal fees, court costs, and other expenses as well. Here are the most common estate planning documents:

LAST WILL AND TESTAMENT. The most important part of your estate plan is your Will. In this document, you specify in great detail how your assets are divided, who will be the guardian of your children, and who is designated to carry out your wishes. Keep in mind, your Will is only applicable after you die. It does not offer any protection if you become physically or mentally incapacitated.

DIRECTIVE TO PHYSICIANS. If you are in a condition where you can’t make decisions for yourself, a Directive to Physicians (commonly called a "Living Will") can help protect your wishes. For example, you may become hospitalized in an unconscious state in which your abilities are severely limited. If you have strong feelings about when or when not to receive resuscitation or life-sustaining care, you would indicate them in your Directive.

POWER OF ATTORNEY. Many people choose to appoint a person to make decisions on their behalf if they become unable to make those decisions themselves, either because of age, illness, or injury. This is called Power of Attorney. Typically, you would appoint a spouse, family member, or close friend to handle your affairs when you are unable to.

There are many different types of Powers of Attorney that vary in scope, duration, and circumstances. It’s important to note that you can grant healthcare power of attorney and financial power of attorney to different individuals if you’d like. It goes without saying that you should 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. It is possible to create a Revocable Living Trust in addition to a Will.

The biggest benefit of creating a Trust is it will help you avoid the probate process. In short, a Revocable Living Trust can help protect your assets from being drained by court and legal costs. It also helps things run a lot more smoothly in general, as your beneficiaries can receive their inheritance faster and with less hassle.

WHAT YOU SHOULD KNOW ABOUT ESTATE PLANNING IN WASHINGTON.

NO WILL. If you die in Washington without a Will, the court will appoint an administrator to distribute your assets according to state succession laws. These laws give your assets to your “closest” living relatives. If you want a say in what happens to your assets upon your death — and you should! — make a Will.

PROBATE. Probate is the legal process of settling the estate of a deceased person. Fortunately, Washington has one of the simplest probate systems in the country:

* Your Personal Representative (as designated in your Will) can act with complete authority and without court intervention in nearly all matters.

* Attorney fees are not based on a percentage of the value of the estate

TAXES. Washington does not have an inheritance tax, but it does have an estate tax. That means there is no tax on the beneficiaries of an estate, but there may be a tax on the decedent’s estate itself.

There are several thresholds and exemptions and other things you should be aware of a discuss with your lawyer. In many cases, no estate tax is actually owed as a result of tax planning in the decedent’s Will. Another great reason to plan your estate!

LAW CHANGES. Federal and state tax laws are constantly changing. That’s why you should review your estate plan periodically to make sure it’s up to date.

If you have estate planning questions, give us a call at 253.858.5434 to set up an appointment today!

Estate planning can be complicated enough when dealing with your personal assets. When it comes to estate planning for the future of your business, the process gets even more involved.

Estate planning can be complicated enough when dealing with your personal assets. When it comes to planning for the future of your business, the estate planning process can get even more involved, but it is also crucial to make sure you have a succession plan in place.

The best place to start when it comes to estate planning and who will take over your business is to talk to an experienced lawyer. We have over 25 years of experience helping people sort through the legal issues involved in business succession. Our deep knowledge of business law and estate planning law makes us ideally suited to meet your needs.

WHY YOU NEED A SUCCESSION PLAN. You have a lifetime of hard work and determination built into the foundation of your business. It can be unpleasant to think about what will happen to your business when you are no longer at the helm. Yet the planning you do today can relieve stress and uncertainty about what will happen in the future. Here are a few reasons why you need a business succession plan in place:

* Provides liquidity for you and other owners — For many business owners, their business represents the bulk of their estate. But if you do not want to work indefinitely, you need a way to liquidate your ownership stake upon retirement. Having a succession plan in place can help with this.

* Minimize transfer taxes — When a business changes hands, the new owners often have to pay transfer taxes, which can be a significant expense. Planning ahead of time can help your successors minimize their tax burden when they take over.

* Provide stability and continuity for your business — If you die suddenly or develop a disability, you will want a plan in place for someone to take over your business and keep it going. Without proper succession planning, your business could be thrown into chaos by an unexpected death or illness. If you want to pass on your business to your children or grandchildren, you will need an organized plan.

THE ELEMENTS OF A BUSINESS SUCCESSION PLAN. A business succession plan usually includes several key components, such as:

* Power of attorney — A power of attorney is a document granting another person authority to make key legal decisions on your behalf. However, you may not necessarily want the same person to have legal authority over your business and personal matters. A business power of attorney allows you to choose someone to represent you if you become disabled.

* Buy-sell agreement — If you do not want your ownership stake in a business to transfer to your beneficiaries upon your death, you will need a plan to have your co-owners purchase your stake upon your death. This arrangement is clarified through a buy-sell agreement outlining under what conditions your stake will be sold and to whom.

* Will, Trust, or both — If you wish to pass on your business to your family members or other beneficiaries, you should make that clear by drafting a Will, establishing a Trust, or both. These are common estate planning documents that help you outline what you want to happen to your estate should you die or become disabled.

* Grantor Retained Annuity Trust — If you are looking to retire but still want to keep some income from your business, a Grantor Retained Annuity Trust (GRAT) may be the way to go. In this type of Trust, the grantor puts their stock or ownership stake into an irrevocable Trust. The grantor can then receive income through the Trust, but their stock or ownership stake is transferred to their designated beneficiaries upon their death. This type of Trust keeps the ownership transfer out of the public eye and can protect the business from claims against it by the grantor’s creditors.

LOOKING FOR HELP? GIVE US A CALL! When it comes to your business succession plan, your specific needs will determine what that plan will look like. To ensure your unique concerns are addressed and that your plan is solid, you need assistance from a committed, experienced lawyer. We would be honored to help you figure out the right succession plan for your business. Contact us today at 253.858.5434 for more information on our services. We represent clients throughout Washington and Idaho and are available to meet in person, by phone, or via video conference.

REMEMBER: Some attorney fees can be deductible on your 2022 tax return if paid by December 31!

REMEMBER: Some attorney fees can be deductible on your 2022 tax return if paid by December 31. Talk to your accountant or tax advisor for details.

So you've taken the entrepreneurial leap and decided to start your own business! Congratulations! You're going to have a lot of legal questions and here's how we can help.

So, you’ve taken the entrepreneurial leap and decided to start your own business! Congratulations! Soon you’ll realize that there are a ton of legal questions that need your attention. Like:

* Should I form a corporation, an LLC, or operate as a sole proprietor?

* What do I need to do to get my business started the legal way?

* Do I need insurance?

There are a variety of the business structures that you can choose from and it’s one of the first decisions you’re going to need to make as a new business owner. Building a business is just like building a house. You’ve got to first get a solid foundation before you can get to the other stuff like putting up your walls and picking out paint colors.

GET IT IN WRITING. YOUR FUTURE SELF WILL THANK YOU. Contracts – the topic is about as exciting a …well, it’s not exciting. Yet, like it or not, contracts are essential to running a business. We cringe every time we hear about a business owner entering into a business relationship WITHOUT a written contract or one that they copied and pasted from samples they found for free on the internet.

Not only do written contracts help clarify expectations between you and a client, they help cover you in the event there’s ever a misunderstanding or disagreement with your client, and they may also support your case in court. An often overlooked, but equally important reason for having written contracts is that they communicate to your clients that you’re a professional and that you take your business seriously.

COMMUNICATIONS & YOUR WEBSITE. Do you have an email opt in on your website? Do you collect credit card information when you conduct a sale online? Or maybe you have Google Analytics or Facebook pixels running in the background collecting data from visitors as they peruse your lovely website? Do you have or participate in an affiliate program? Do you run social media giveaways and promotions? If you answered “yes” to these questions, believe it or not, there are rules about the way you communicate with your customers, your website visitors, or your audience, including:

* CAN-SPAM laws about your email communications

* Privacy Acts and the GDPR about the data you collect from website visitors

* FTC guidance about affiliate relationships and endorsements

* Laws about hosting giveaways and contests

TRADEMARKS & COPYRIGHTS. If you’re creating content or utilizing others content, which as a business owner, you likely are – you should have an understanding of how to navigate the topic of copyrights and trademarks. The topic is a confusing one. These terms are often incorrectly used interchangeably, however, they have their distinct set of laws and apply to different types of works. Copyright law protects “original works of authorship” – things like books, photographs, designs, and more. In contrast, trademark law protects the expression used to identify and distinguish a product or service in the marketplace, like business names, logos, slogans, and other commercial signifiers. As an owner of a copyright or a trademark, you have rights – including the right to keep others from using your work without your permission.

Take stock of your intellectual property rights and protect your valuable content. And just as you wouldn’t want someone using your content without your permission, don’t do it with someone else’s work.

HIRING. Now that you’re running your own business, from time to time you may want to bring on additional employees to help you in your business. Or maybe you’re ready to hire someone to assist you right from the start. Even if you’re not planning on hiring anytime soon, you’ll want to familiarize yourself with what is entailed when you hire help in your business. From proper classification of the workers as either employees or independent contractors to the Do’s and Don’ts or hiring, the laws related to hiring vary widely from state to state.

If you're starting up a new business and need legal advice, give us a call at 253.858.5434 to set up an appointment today. We represent clients throughout Washington and Idaho and are available to meet in person, by phone, or via video conference.

A Directive to Physicians (or "Living Will") guides your loved ones and medical providers by spelling out your wishes regarding medical intervention and end-of-life care.

If you became incapacitated due to grave illness or injury, your doctors and your family would have to make important decisions about your care. A Directive to Physicians guides your loved ones and medical providers by spelling out your wishes regarding medical intervention and end-of-life care. We will sit down with you to discuss these sensitive but important questions, and draft clear instructions for medical personnel and your family.

WHY YOU SHOULD HAVE A DIRECTIVE TO PHYSICIANS ("LIVING WILL"). A Directive to Physicians (also called a Health Care Directive, Medical Directive, or Living Will) is a legal document that provides specific guidance on what actions the medical staff should or should not take on your behalf, such as:

* Heroic measures – If your heart stopped, would you want to be resuscitated?

* Life support – If you lost brain function or the ability to breathe, would you want to be kept alive?

* End-of-life care – Do you want life-extending treatment? Pain medications? Religious rites?

Medical providers must adhere to medical directives, such as a DNR (Do Not Resuscitate) order. In the absence of a Directive to Physicians, physicians may be required to act against your wishes, or family members may be powerless to do what you would have wanted.

HEALTH CARE POWERS OF ATTORNEY. In addition to a Directive to Physicians, you may want to designate a loved one as your health care proxy or agent, also known as health care attorney-in-fact. That person would be empowered to make decisions on your behalf if you were incapacitated. For example, they could authorize surgery or other medical intervention in a crisis situation when time is of the essence.

The key to a Directive to Physicians is in the details. You may think your family knows your wishes, and vice versa, but when the time comes there may be disagreements or heart-wrenching decisions. We can walk you through various scenarios to ensure that the Directive to Physicians reflects your wishes and avoids those dilemmas.

Based in Gig Harbor, we provide full-service estate planning throughout Washington and Idaho. Give us a call at 253.858.5434 to set up an appointment today. We are available to meet in person, by phone, or via video conference, whatever is most convenient for you.

When you move to a new state, you need to make sure your estate planning documents comply with your new state's laws.

If you are moving to a new state, you surely have many thoughts and concerns on your mind, but don't let your estate planning documents fall through the cracks. The good news is you've already handled the hard part in getting these docs together. And to be clear, there's no reason you need to start all over again with a new estate plan. You do, however, need to make sure that your Will, Revocable Living Trust, Directive to Physicians ("Living Will"), Power of Attorney, and any other estate planning document you may have comply with your new state's laws — and that these documents all still do what you intend for them to do.

LAST WILL AND TESTAMENT. Every state has different requirements for the execution of Wills, but the good news is that most states accept out-of-state Wills that were properly executed according to that state's laws. But that doesn't mean you're off the hook on making sure your Will still achieves what you want it to achieve:

* Personal Representative. One big consideration is whether your chosen Personal Representative can serve in that capacity in your new state. Although most states allow out-of-state PRs to serve, they may have special requirements for them to fulfill, such as posting a bond to ensure they will follow the new state's laws and procedures. Many states, like Washington and Idaho, require an out-of-state PR to appoint an in-state agent to accept legal documents for the estate.

* Marital Property. If you are married, something else to investigate is how your state treats marital property. Community property states treat marital property as being owned jointly, whereas spouses in common law states own property that is in his or her name. If you are moving to a community property state and you had previously lived in a common law state (or vice versa), your Will may not handle your property as you would like and you may need to create a new Will to reflect your wishes.

* Probate. Probate (the court-supervised process of distributing a decedent's estate) also varies greatly by state. You will want to make sure your Will still handles the issue of probate effectively, which may require some tweaking of the Will's language or even drafting another Will or other estate planning documents.

REVOCABLE LIVING TRUST. If you have a Revocable Living Trust, it should still be valid in your new state, or in any state for that matter. The main consideration with your Trust when you move is to make sure it is funded with all of the assets you want to pass directly to a beneficiary. If you've bought a new home, for instance, you may want to revise your Revocable Living Trust.

DIRECTIVE TO PHYSICIANS ("LIVING WILL"). A Directive to Physicians — which states your wishes regarding medical care should you be unable to communicate them — is usually applicable across state lines, but it's not a guarantee. Some states don't even address the concept within their statutes, making it especially hard to be sure whether an out-of-state Directive will be honored.

Because each state has its own forms, provisions, and language, your best course of action is either to be absolutely sure your documents will be valid if/when you need them or simply to draft new ones according to your new state's laws.

POWER OF ATTORNEY. Similar to Wills, most states will recognize and honor Powers of Attorney, including Durable Powers of Attorney and Health Care Powers of Attorney, that were executed out of state so long as they met the legal requirements of that state. It is not automatic, however, so you should check to make sure yours will still be valid. For practical reasons as well as convenience, though, you may want to consider having a Power of Attorney that is located in your new state.

BENEFICIARY DESIGNATIONS. In addition to the above estate planning documents, many people also have life insurance policies, retirement and pension accounts, or pay-on-death (POD) or transfer-on-death (TOD) accounts within their estate plan. All of these provide that the benefits transfer directly to the named beneficiary or beneficiaries. These policies and accounts shouldn't be affected by your move to another state, but you do need to ensure that your personal information, including your new address, is correct.

A GOOD TIME TO UPDATE. As with any major life change, your move is a perfect time to make sure you have all your estate planning documents in order. An estate planning lawyer in your new state can be a big help in determining whether your docs are still in good shape.

Even if you don't think laws in your new state will affect what you've already put together, it's still a good time to make sure all the names and numbers are up-to-date and that you've included all the property and individuals you want included in your estate plan. Investing a little time now could save your loved ones a whole lot of hassle later.

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

"Premises liability" cases deal with injuries that occur on someone else's property and usually occur because of some dangerous condition.

When you suffer an injury due to an incident on someone else’s property, don’t assume the insurance company will cover the cost of your medical bills. Often their offers are far lower than what you need to get well. Often they deny your claim altogether and assert that you are at fault.

When such a situation occurs, give us a call. We have represented injured people for more than 20 years. We work on your behalf to get a fair settlement. We have experience in all aspects of personal injury practice, including reading medical reports, applying the law, and fighting to get you what you deserve.

WHAT KINDS OF INCIDENTS? Premises liability deals with injuries that occur on either private or public property. The injury usually occurs because of some dangerous condition that you were not aware of before the incident, but that the property owner knew about and failed to correct.

Property owners have a responsibility to ensure their invited guests are reasonably safe while on the property. This means they usually need to take steps to repair defects on the property. For example, if a guest slips and falls on the sidewalk because the owner didn’t de-ice the ground, the owner could be found negligent, which is where a lawyer comes in.

Other common sources of injury on private or public property include:

* Swimming pools

* Trampolines

* Staircases, elevators, and escalators

* Poor building security

* Broken or uneven floors

* Toxic materials

Remember that the existence of these elements does not automatically mean the property owner was negligent. We examine the situation and determines whether or not the owner knew of the problem and refused to take steps to remedy the situation. Figuring out who was at fault for your injury is an important step towards getting you compensation.

If you need an experienced lawyer to take your case, reach out to schedule an appointment today. We will meet with you quickly to review your claim. Reach our Gig Harbor office at 253.858.5434.

As a Trust beneficiary, you may feel that you're at the mercy of the Trustee, but depending on the type of Trust, beneficiaries have rights to ensure the Trust is properly managed.

As a Trust beneficiary, you may feel that you are at the mercy of the Trustee, but depending on the type of Trust, beneficiaries have rights to ensure the Trust is properly managed.

A Trust is a legal arrangement through which one person, called a "Trustor," "Settlor," or "Grantor," gives assets to another person (or an institution, such as a bank, trust company, or law firm), called a "Trustee." The Trustee holds legal title to the assets for another person, called a "beneficiary." The rights of a Trust beneficiary depend on the type of Trust and the type of beneficiary.

If the Trust is a Revocable Trust — meaning the person who set up the Trust can change it or revoke it at any time -- the Trust beneficiaries other than the Settlor have very few rights. Because the Settlor can change the Trust at any time, they can also change the beneficiaries at any time. Often a Trust is revocable until the Settlor dies and then it becomes irrevocable. An Irrevocable Trust is a Trust that cannot be changed except in rare cases by court order.

Beneficiaries of an Irrevocable Trust have rights to information about the Trust and to make sure the Trustee is acting properly. The scope of those rights depends on the type of beneficiary. Current beneficiaries are beneficiaries who are currently entitled to income from the Trust. Remainder or contingent beneficiaries have an interest in the Trust after the current beneficiaries' interest is over. For example, a wife may set up a Trust that leaves income to her husband for life (the current beneficiary) and then the remainder of the property to her children (the remainder beneficiaries).

State law and the terms of the Trust determine exactly what rights a beneficiary has, but following are five common rights given to beneficiaries of irrevocable trusts:

PAYMENT. Current beneficiaries have the right to distributions as set forth in the Trust document.

RIGHT TO INFORMATION. Current and remainder beneficiaries have the right to be provided enough information about the trust and its administration to know how to enforce their rights.

RIGHT TO AN ACCOUNTING. Current beneficiaries are entitled to an accounting. An accounting is a detailed report of all income, expenses, and distributions from the Trust. Usually, Trustees are required to provide an accounting annually, but that may vary, depending on the terms of the Trust. Beneficiaries may also be able to waive the accounting.

REMOVE THE TRUSTEE. Current and remainder beneficiaries have the right to petition the court for the removal of the Trustee if they believe the Trustee isn't acting in their best interest. Trustees have an obligation to balance the needs of the current beneficiary with the needs of the remainder beneficiaries, which can be difficult to manage.

TERMINATE THE TRUST. In some circumstances, if all the current and remainder beneficiaries agree, they can petition the court to end the Trust. State laws vary on when this is allowed. Usually, the purpose of the Trust must have been fulfilled or be impossible.

If you are the beneficiary of a Trust and have questions about your rights, give us a call at 253.858.5434 to find out how we can help. We proudly represent clients throughout Washington and Idaho and are available to meet in person, by phone, or via video conference.

Pets are part of the family! What happens to your pet when you die? Is there anything you can do to ensure your pet will be taken care of in your Will? In Washington, the answer is yes!

Pets are a part of the family! What happens to your pet when you die? Is there anything you can do to ensure that your pet will be well taken care of in your Will? Here in Washington, the answer, fortunately, is yes! RCW Chap. 11.118 sets forth Washington law governing Trusts for pets in estate planning. By including a Trust for your pet in your Will, you can name a caretaker to care for your pet as well as appoint a Trustee who will take care of the money you leave for your pet's care and also establish how the money should be spent for your pet’s care. We have prepared several Wills over the years that include Trusts for clients' pets.

Our office will work with you to help you select an appropriate Trustee, who will ideally be someone you trust completely and who also has a strong relationship with your pet. We can also assist you in determining the distribution amount, considering factors such as your past spending history regarding your pet’s care, the age and health of your pet, and also that pets tend to require more expensive veterinary care as they get older.

We will also encourage you to communicate with your Trustee and alternates, both verbally and in writing, in terms of what they need to know to take good care of your pet – types of food, name and contact information of your veterinarian, health history and concerns, preferred treats, additional services (massage, acupuncture, etc.), feeding times, spots where your pet likes to be petted, etc.

If you decide that you don’t need or want a Trust for your pet in your Will, we can recommend some alternatives for you to make sure that your pet will be well taken care of during the estate planning process. Together, we can work through this issue to help ensure that your very loved pet will be well taken care of if anything ever happens to you.

Give us a call at 253.858.5434 if you have questions about incorporating care for your pets into your estate plan.

Where you're setting up your small business, there are three necessary members you need on your team: a financial advisor, an accountant, and a lawyer.

When you are finally ready to set up your small business, there are three necessary members you need on your team. And that is a lawyer, a financial advisor, and an accountant. Unfortunately, people tend to overlook hiring a lawyer because they think they can handle all the legalities independently, but more times than not, they are mistaken. A lawyer is very important when setting up a new business and providing you with the necessary legal advice.

SETTING UP YOUR COMPANY. Not all companies are the same. Options to create a company can include sole proprietorships, general partnerships, joint ventures, limited partnerships, limited liability companies, and corporations. Each type of company has pros and cons, rules, and terms that a lawyer will know, and can streamline the process for you.

TAX COMPLIANCE. All businesses, big or small, must pay taxes. A lawyer will know the tax advantages and disadvantages for each type of company. They will be able to help the owners pay their dues on time and avoid unnecessary tax fines.

CONTRACTS. If you plan to hire employees for your business or provide services to customers, you must formulate solid contracts. A lawyer can help create contracts that will protect your company and avoid unnecessary problems down the road. Contracts can also help protect a company’s business, including confidential information, formulas, recipes, etc.

AVOIDING LAWSUITS. Through drafting contracts and adhering to state requirements, lawyers help your company avoid potential lawsuits. Your lawyer is the voice of reason that knows the law and does their research to ensure every decision reached stays on the lawful side of things.

FIGHTING LAWSUITS. Let’s say that you are already in a legal fix; what do you do? You get a lawyer ASAP! If you do not have one already, they are your best bet to beat the system and regain control. Even if you are the one in the wrong, a lawyer helps you negotiate your way to fixing things within reasonable constraints.

You need a lawyer if you want your company to grow, flourish, and be protected. A lawyer is an asset for your small enterprise. Contact us today at 253.858.5434 to get more information! We represent clients throughout Washington and Idaho and are available to meet in person, by phone, or via video conference.

Choosing people for the fiduciary roles within your estate plan should be done with great care because appointing the wrong person can have a detrimental effect on the overall success of your plan.

Creating a comprehensive estate plan requires you to make numerous important decisions. Although many of those decisions are directly related to the distribution of your estate assets after you are gone, not all of them are. In fact, some of the most influential decisions you will make within your estate plan are often the ones people spend very little time making. These are decisions related to fiduciary roles within your plan. Choosing people for the fiduciary roles within your estate plan should be done with great care because appointing or nominating the wrong person can have a detrimental effect on the overall success of your plan.

WHAT DOES IT MEAN TO BE A FIDUCIARY? A fiduciary is a person who holds a legal or ethical relationship of trust with another person or a group of people. Put another way, a fiduciary is someone who has undertaken to act for and on behalf of another in a particular matter in circumstances that give rise to a relationship of trust and confidence. Furthermore, a fiduciary duty is the highest standard of care in equity or law. A fiduciary is expected to be extremely loyal to the person to whom they owe the duty and must not profit from the position as a fiduciary. A fiduciary can receive a fee for services; however, they should not profit at the expense of the other party.

TIPS FOR CHOOSING YOUR FIDUCIARIES. Although every estate plan is unique, most have at least one fiduciary role within the plan and most have several fiduciaries. When you are deciding who to appoint to these fiduciary roles within your estate plan, considering the following tips:

* Personal Representative – When you create your Will, you will appoint a Personal Representative. Your Personal Representative is responsible for overseeing the administration of your estate during the probate process. Appoint someone who:

-- Will not be so overwhelmed with grief that they cannot focus on what needs to be done.

-- Lives close enough to be able to secure and manage the property while the probate process is going on and can handle the distribution of your assets at the end of the process.

-- Is good at conflict resolution.

-- Will not hesitate to seek assistance from professionals if it is needed.

* Trustee – If you incorporate a Trust into your estate plan, you will need to appoint a Trustee. Your Trustee will manage and invest Trust assets as well as administer the Trust and make distributions using the terms you created. Appoint someone who:

-- Has a financial and/or legal background, or who understands that they should hire a professional to advise them.

-- Does not have any conflicts with beneficiaries.

-- Lives close to any real estate held by the trust.

-- Is willing to serve in the position.

* Agent in a Durable Power of Attorney – A Power of Attorney allows you to appoint an Agent who will have the legal authority to act on your behalf in legal and financial matters. A POA can be general or limited. If you create a general POA, appoint an Agent who:

--You trust unconditionally.

-- Has the ability to handle challenges to their authority because some third parties will likely question your Agent’s authority.

* Agent in a Healthcare Power of Attorney – A Healthcare Power of Attorney allows you to appoint an Agent to make healthcare decisions for you if you are unable to make them yourself because of your incapacity. Appoint an Agent who:

--Knows you well enough to know what decisions you would likely make.

-- Will be able to understand the often-complicated medical jargon and explanations.

-- Is able to remain calm under pressure and make difficult decisions

CAN I APPOINT MY SPOUSE AS A FIDUCIARY? You can appoint anyone you wish to a fiduciary position; however, sometimes there are cases where it's not in your best interest (or your spouse's) to appoint your spouse to a fiduciary role.

WHAT HAPPENS IF I FAIL TO APPOINT SOMEONE TO A FIDUCIARY POSITION? It depends on the position, but it often means that a court will be forced to appoint someone for you without your input.

CAN I APPOINT CO-FIDUCIARIES OR SUCCESSOR FIDUCIARIES? You can — and should — appoint successor or alternate fiduciaries. You can often appoint more than one person to a fiduciary position; however, doing so can create additional confusion. Talk to your estate planning lawyer before appointing co-fiduciaries.

If you have additional questions about how to pick fiduciary roles within your estate plan, contact us by calling 253.858.5434 to schedule an appointment. We proudly represent clients throughout Washington and Idaho and are available to meet in person, by phone, or via video conference.

The Downside to Keeping Your Important Documents in a Safe Deposit Box

We have discussed this issue several times in the past and during many conferences with clients. Basically, unless you have valuables that must be stored in a lock box at a bank, we do not recommend using safe deposit boxes.

As banks have become larger and larger, they have become harder and harder to deal with when a decedent has a safe deposit box. Many banks are requiring Letters Testamentary, court orders, or similar documents in order to surrender the contents of a safe deposit box, even if it was joint and there is a surviving spouse. This is true even if you can prove by a bill of sale or other documentation that you own the property in the box.

The concern of banks is that they may turn over valuable contents to the wrong party. For certain items such as Wills, life insurance policies, and deeds to cemetery plots, they can turn these over to certain individuals upon proof of death and the relationship of the individual to the decedent. For other items in the safe deposit box, it is not so easy. By requiring Letters Testamentary or similar documents, they are asking for you to open up a probate estate and have a Personal Representative appointed. This can be an unnecessary multi-thousand dollar task. Probating a Will and getting a Personal Representative appointed requires administration of the estate through the court.

In order to avoid the issues, you should not have a safe deposit box unless you have items such as valuable jewelry, gold, silver, etc. that need to be locked up and you do not have an adequate home safe. If you must have a safe deposit box at a bank, then make sure a trusted family member or friend also has access to it.

If you have questions about accessing a decedent's safe deposit box, or any other probate or estate planning questions, give us a call at 253.858.5434 to see how we can help. We represent clients throughout Washington and Idaho and are available to meet in person, by phone, or via video conference.

How do lawyers put a dollar value on a personal injury case? What constitutes a fair (or even acceptable) amount of money to settle your case?

The vast majority of personal injury cases settle out of court. Litigation -- the process of taking a personal injury lawsuit through the civil court system -- is a costly proposition with no guarantee of a good result. Most lawyers generally recognize that reaching a reasonable settlement is vastly preferable to the court-based process. But how do they put a dollar value on a personal injury case? What constitutes a fair (or even acceptable) amount of money to settle your case?

THE CONCEPT OF "DAMAGES." In personal injury law, "damages" (your injuries and losses) form the basis of calculating the amount of money appropriate to compensate you. You cannot appropriately value a personal injury case unless you understand what damages are available in your case.

There are three basic types of damages: economic, non-economic, and punitive (in Idaho, but not in Washington, where we do not recognize punitive damages). In nearly every personal injury case, economic and non-economic damages are at issue. Punitive damages -- those being damages designed purely to punish an egregiously negligent party -- are generally available only in specific instances, and generally aren't part of settlement calculations in most cases.

Economic damages are quantifiable expenditures or financial losses that can be directly attributed to the injury suffered, and to the underlying incident. Economic damages can be relatively easy to calculate, particularly if you are diligent about keeping thorough records of all you spend or lose (including wages) due to your injury.

Non-economic damages are the proverbial "pain and suffering" damages and are designed to compensate you for any emotional or psychological toll your injuries have taken on your life. While economic damages may be subject to some negotiation, placing a value on them is relatively easy. Not so much with pain and suffering.

Determining what to demand in non-economic damages requires a combination of research, experience, and honest assessment. While every injured party would like a seven-figure sum regardless of the injury, the simple truth is that insurance companies (who are likely paying any settlement) only have so much money to pay under their policies.

An experienced lawyer will know how certain insurance companies work, and will generally have some idea of how much money, in total, is available. A little research can go a long way toward determining what juries have awarded in similar cases, which can also inform a demand. Finally, an honest assessment of the value of the case -- and the dollar amount you consider to be fair compensation -- will help frame any settlement demand. As such, an auto collision with minor bumps and bruises will likely settle for far less than a collision that results in permanent disability.

FRAMING A DEMAND. Once you understand the damages available, as well as the amount of potential settlement money available, your lawyer will frame a demand and formalize it in a demand letter.

A demand should always leave room for negotiation, so it is a smart idea to ask for a sum greater than your "bottom line" number. When framing your demand, you simply add up your economic damages and any monetary compensation for pain and suffering you feel you deserve. The defendant or insurance company will then begin to negotiate that number down.

Depending on the strengths and weaknesses of your case, or the time frame in which the demand is made, a counteroffer may be significantly lower than your initial demand. This is normal. Insurance companies are always looking for discounts for early resolution of cases and will magnify any perceived weaknesses in your case in an attempt to obtain a settlement agreement for as little money as possible.

The negotiation process can be a matter of a few phone calls between lawyers, or can involve mediators, facilitators, and even judges. Courts prefer that cases settle prior to trial and will often bring any and all resources at their disposal to bear to ensure that a case settles. The value you place on your case can directly impact how settlement negotiations are handled. In fact, injured parties sometimes make extremely high demands to force unwilling defendants into mediation or facilitation.

THE REAL VALUE OF YOUR CASE. Only you, as an injured person, can know the true value of a case. But when placing a settlement value on a personal injury claim, it is important to keep in mind that the ultimate goal is recovery and that recovery requires compromise.

If you have a particularly strong case, where the facts are not in dispute and liability is relatively clear, you are likely in a position to place a high value on your case and still settle. However, for every crack and weakness in the facts of your case, your demand will likely be reduced accordingly. If you enter negotiations with these facts in mind and are mentally and financially prepared to receive fair compensation as opposed to a windfall, you and your lawyer should be able to place a value on your case that will lead to a satisfactory settlement.

If you have questions about a personal injury matter, give us a call at 253.858.5434 to set up an appointment for a free consultation today.

Gifting assets to your grandchildren can do more than help them get a good start in life -- it can also reduce the size of your estate and any estate taxes that will be due upon your death.

Gifting assets to your grandchildren can do more than help your descendants get a good start in life — it can also reduce the size of your estate and any estate taxes that will be due upon your death. The simplest approach to gifting is to give the grandchild an outright gift. You may give each grandchild up to $16,000 a year (in 2022) without having to report the gifts. If you’re married, both you and your spouse can make such gifts. For example, a married couple with four grandchildren may give away up to $128,000 a year with no gift tax implications. In addition, the gifts will not count as taxable income to your grandchildren (although the earnings on the gifts if they are invested will be taxed). Just remember that any gift can interfere with Medicaid eligibility.

But you may have some misgivings about making outright gifts to your grandchildren. There is no guarantee that the money will be used in the way you may have wished. Money that you hoped would be saved for educational expenses may instead be spent on a fact-finding mission to Scottsdale. Fortunately, there are a number of options to protect against misuse of the funds by grandchildren:

* You can pay for educational and medical costs for your grandchildren. There’s no limit on these gifts, meaning that you can pay these expenses in addition to making annual $16,000 (in 2022) gifts. But you have to be sure to pay the school or medical provider directly.

* You can make gifts to a custodial account that parents can establish for a minor child.

* You can create a Trust and transfer money into the Trust established to benefit a grandchild.

* You can reduce your taxable estate while earmarking funds for the higher education of a grandchild through the use of a “529 plan" account.

* You can use other gift vehicles like IRAs and savings bonds.

To determine the best way to provide for your grandchildren, contact us at 253.858.5434 for a consultation. We proudly represent clients throughout Washington and Idaho and are available to meet in person, by phone, or via video conference.

Some of the decisions that impact the success or failure of an estate plan are frequently done without much thought -- including decisions relating to choosing fiduciaries throughout your estate plan.

Although you may not realize it, some of the decisions that impact the success -- or failure -- of an estate plan are frequently made without giving them much thought. Those decisions are the ones that relate to choosing fiduciary roles throughout your estate plan.

WHAT IS A FIDUCIARY? A fiduciary is a person who holds a legal or ethical relationship of trust with another person or a group of people. Put another way, a fiduciary is someone who has undertaken to act for and on behalf of another in a particular matter in circumstances which give rise to a relationship of the utmost trust and confidence. Furthermore, a fiduciary duty is the highest standard of care in equity or law. A fiduciary is expected to be extremely loyal to the person to whom they owe the duty and must not profit from the position as a fiduciary. A fiduciary can receive a fee for services; however, they should not profit at the expense of the other party.

FIDUCIARY ROLES WITHIN AN ESTATE PLAN. Although every estate plan is unique, the average plan will have more than one fiduciary role within the plan. The most common examples of fiduciary roles in an estate plan include:

* Personal Representative — When you create your Will, you will be required to appoint a Personal Representative (formerly called an "Executor") who is responsible for overseeing the administration of your estate during the probate process.

* Trustee — If your estate plan includes creation of a testamentary Trust in your Will or a Revocable Living Trust Agreement, an Irrevocable Life Insurance Trust, a Grantor Retained Interest Trust, a Charitable Remainder Trust, a Qualified Personal Residence Trust, a Qualified Domestic Trust, or any other kind of Trust into your estate plan, you will need to appoint a Trustee. Your Trustee will manage and invest trust assets as well as administer the Trust Agreement using the terms you created.

* Agent in a Power of Attorney – When you create a Power of Attorney you must appoint an Agent (or "attorney-in-fact") who will have the legal authority to act on your behalf in legal matters .

* Health Care Agent – If you create a Health Care Power of Attorney, you will need to appoint an Agent to make healthcare decisions for you if you are unable to make them yourself because of your incapacity.

HOW TO APPOINT THE RIGHT FIDUCIARY. Appointing the wrong person to a fiduciary role is among the most common estate planning mistakes. To help prevent you from making a mistake, ask yourself the following five questions when choosing a fiduciary:

* Do they have the necessary skills/experience? Not all fiduciary roles require special skills, but some do. A Trustee, for example, should ideally have a legal and/or financial background.

* Is this someone I trust implicitly? A fiduciary typically makes extremely important decisions as well as handles valuable assets. You must be able to trust a fiduciary unquestionably.

* Will this person be capable of fulfilling the role? Does the person live close enough? Will their job allow sufficient time to perform the duties required? Will the person be able to set aside emotions and think clearly when necessary?

* Is this person willing to accept the appointment? Never assume that someone is willing to be your Personal Representative, Trustee, or Agent. Always ask them directly before appointing them.

* Does appointing this person create any conflicts? There are numerous potential conflicts in an estate plan. For example, if your Trustee has an existing personal relationship with one beneficiary but not with the others, it can create a conflict.

If you have questions about appointing fiduciaries in your estate plan, or have estate planning questions in general, 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.