Estate planning can be difficult to think about. An experienced lawyer can help you navigate through complicated situations.

Estate planning can be difficult to think about. Overall, it forces individuals to contemplate fiscal matters that will occur while they are living and after their own deaths. It's thus extremely important to make sure assets are managed prudently and that next generational family members will receive inheritances, without incident. Although any lawyer can draw up a simple Will for straightforward situations, seasoned estate planning lawyers can help navigate more complicated situations involving several Trusts and multiple heirs.

When building an estate plan, you may have a variety of concerns, including the following:

* Maintaining an orderly administration of assets while you are living

* Managing estate assets flexibly while you are living

* Reviewing estates involving tenants in common or community property

* Considering assets in multiple states

* Examining small business assets

* Naming your children’s legal guardian

* Ensuring that your heirs and loved ones receive your assets

* Helping to reduce or avoid conflicts and confusion

* Minimizing legal expenses and taxes

* Assessing wealth preservation

These topics and the questions below are a good place to start when searching for the best lawyer for your needs.

QUESTIONS FOR YOUR POTENTIAL ESTATE PLANNING LAWYER. The following questions will help you to learn about estate planning and to determine if a prospective estate planning lawyer is right for you.

IS YOUR PRIMARY FOCUS ON ESTATE PLANNING? Proceed with a candidate only if they answer "yes" to this question. An estate planning will be current with all changes to statutes and have the necessary strategic know-how to carefully word your documents in the most effective way possible.

HOW LONG HAVE YOU BEEN PRACTICING LAW? Obviously, you should strive to find the most experienced lawyer possible — one who has seen prepared documents take effect after a client's death. Such lawyer will have faced challenges from courts or the IRS and will know how to overcome any hurdles.

DO YOU ACTUALLY EXECUTE THE PLAN? Some lawyers merely draw up estate planning documents, while others also execute and supervise the funding of the associated Trusts. It's generally more efficient to retain a lawyer in the latter category, who can ensure that the correct assets are transferred into the Trust.

DO YOU CONDUCT PERIODIC REVIEWS? Some estate planning lawyers will regularly review your plan. This can be important, as adjustments to your plan may be necessary if you experience a life change or a change in your finances. New legislative acts also could potentially change aspects of your estate planning.

WHAT IS YOUR ESTATE TAX EXPERIENCE? HOW CAN I BEST MANAGE ESTATE TAXES? Case in point: The Tax Cuts and Jobs Act of 2017 raised the estate tax and generation-skipping transfer tax exemptions until 2025.

CAN YOU HELP ME CREATE A COMPREHENSIVE ESTATE PLAN? You may have a Will and multiple types of Trusts and life insurance plans and comprehensive estate plans can include all of these. So it's important that your estate planning lawyer is knowledgeable in these areas. You might want your lawyer to help you understand the nuances of each estate planning tool and discern the ones that might be right for you.

HOW DO YOU CHARGE? Many estate planning lawyers charge flat fees instead of billing by the hour. Some do both, where they charge a fixed rate for standard services like establishing a Trust, then charge an hourly rate for special research tasks. In any case, it's wise to inquire about compensation models ahead of time to avoid surprises.

HOW DO YOU FEEL ABOUT REVOCABLE LIVING TRUSTS? Putting assets into a Revocable Living Trust can avoid the costly and onerous probate process (filing a Will with the court). But this may not be the best move for everyone, because Revocable Living Trusts don't avoid inheritance, estate, or income taxes. Unfortunately, some lawyers recommend these structures for every client simply so they can charge more money.

WHAT OTHER ISSUES DO YOU ADDRESS? As life expectancy increases, so does the probability of long-term physical and mental health issues. Estate planning lawyers should help clients prepare for the possibility of disability or dementia by drawing up Powers of Attorney and Living Wills.

HOW LONG WILL IT TAKE TO COMPLETE MY ESTATE PLANNING PROJECT? While there is generally no extreme rush, bear in mind that you may wish to discuss aspects of your estate plan with other professionals, such as accountants, financial planners, or wealth managers. While a lawyer's expertise may overlap with these fields, they may not be a general tax expert or investment advisor. Give yourself enough time to gain a broader, big-picture perspective on your estate plan and the logistical practicalities of implementing it.

WILL YOU SEND ESTATE PLANNING DOCUMENTS FOR ME TO REVIEW? Even if you’re working with an experienced estate planning lawyer, it's essential to review all documents to avoid any miscommunication. Be clear about what can be changed later, and what is irrevocable.

DOES YOUR LAW FIRM TYPICALLY NAME ITSELF AS TRUSTEE OR PERSONAL REPRESENTATIVE? The answer to this question should be no, as a "yes" suggests a conflict of interest, among other issues. A spinoff question might be "does a subsidiary of your firm do asset management?" The answer to this question should also be a "no."

SOME QUESTIONS FOR YOU. Here are several questions you should ask yourself:

* When meeting with a potential estate planning lawyer, how comfortable do you feel?

* Does your lawyer communicate well and clearly?

* Do you agree with their general values? How does their bedside manner make you feel?

* Do you have a good rapport?

* Can you envision speaking with this individual about very personal matters?

Trust your instinct to determine if a particular estate planning lawyer is right for you. Estate planning can be complex, both emotionally and legally, so it's imperative to choose a lawyer who can deftly handle all of its elements.

If we can be of service to you, your family, friends, neighbors, or coworkers, give us a call 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.

Our Estate Planning Process

When we meet with clients to prepare their estate plans, we begin with an initial meeting, preferably in person, to take the time to discuss their goals, needs, plans, assets, liabilities, and family situations and really get to the know the clients. This meeting gives us the basis for exactly what type of plan and exactly what documents the clients need to achieve their goals. We then spend a significant amount of time drafting the necessary documents and then we send them to the clients for review and approval. Assuming the documents we have prepared are correct and acceptable to the clients, we then schedule a second meeting for them to come in to our office to have the documents properly signed, witnessed, and notarized. We generally charge a flat fee for estate planning legal services and the clients know the exact cost of retaining us by the time the initial meeting is over.

If you have questions about the estate planning process 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.

We provide legal counsel to clients in planning for the optimum ownership and disposition of personal wealth, both during life and at death.

We provide legal counsel to clients in planning for the optimum ownership and disposition of personal wealth, both during life and at death. We advise clients on structuring ownership of family businesses and other assets in order to achieve each family’s personal and business objectives in the most tax efficient manner. We implement planning techniques which are tailored to each client’s personal, financial, charitable, risk management, and other objectives. We also focus on opportunities for the optimal transfer of assets to family members at favorable valuations to minimize tax consequences.

We possess particular expertise in the administration of estates, including those holding real estate and business interests. We implement innovative strategies to maximize clients’ assets passing to the next generation through the use of tax elections, disclaimers, and other sophisticated planning techniques. We follow a multi-disciplinary approach that incorporates our business, real estate, tax and other knowledge and experience.

Our administration services include the valuable assistance of experienced tax accountants, financial planners, investment advisors, insurance experts, and family counselors.

In the planning process, we also work extensively with clients in fulfilling their philanthropic goals, whether through outright gifts or charitable entities. Many of our clients have created private foundations, private operating foundations, and donor-advised funds. We offer guidance on the best vehicles to meet the family’s charitable goals and assist with the ongoing administration of the family entities.

If you have estate planning questions, 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.

February Deals for New Estate Planning Clients!

It's February -- the month of Valentines and Cupid and flowers and all that! You love your significant other and want to take care of them, right? Here's what we'll do to help. For new clients who hire us during the month of February, we'll provide estate planning legal services for couples at the same flat fees we do for single individuals! What could be more romantic than meeting with your lawyer and signing estate planning documents together? 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 by video conference.

Many of our estate planning clients are artists and their estate plans involve unique practical hurdles and intellectual property issues.

Many of our clients are artists and their estate planning involves unique practical hurdles and intellectual property issues. Artists worry about their creations and how they will fare in the world after they are gone.

CATALOG YOUR WORK. Before we draft a Will or Trust for an artist client, we encourage them to inventory their work. This inventory or catalog can simply be an excel spreadsheet or paper notebook with the following information:

* Image or description of piece.

* Title and date

* Physical location (auction house, studio, home, gallery, etc.)

* Contractual agreements, licenses, or royalties.

* Appraised or approximate value

* History of sales

This makes it easy to keep track of the physical location as well as any outstanding contractual obligations. If the artwork is of considerable value, the pieces should be insured. There are many free digital tools online, such as ArtDex.

HOW IS ARTWORK TREATED IN YOUR WILL? Artwork is considered “tangible personal property.” In many simple Wills, little consideration is given to how tangible personal property is distributed, even though such property consists of the artist’s own work and/or valuable art collection.

Technically all tangible personal property should be appraised upon the death of the testator, but that is rarely done because there is little monetary value to such items – books, clothes, household goods, furniture, art! Sometimes such items are thrown out, doled out to relatives, or there is an estate sale. As you can imagine, if artwork is sold as part of an estate sale, it is likely not being sold for its true worth.

To avoid your artwork being treated like yard sale paintings, you need to make arrangements in your Will or Trust. As many artists collect or are gifted work of other artists, you also want to clearly differentiate between your own creations and works from other artists, as well as collaborations.

SPECIFIC BEQUESTS OF ARTWORK. You should consider any specific pieces of artwork you want to gift to friends or family upon your death. A specific bequest is the gift of a specific asset that is clearly identified and left to a specific person. If the item is not in existence at the testator’s death, then the bequest lapses and becomes part of the testator’s residuary estate. For example, if you sell a painting you left in your Will to your sister, your sister does not inherit the proceeds from the sale.

PRESERVATION OF YOUR ARTISTIC LEGACY. An important consideration is how to preserve the physical art pieces themselves. Some artists donate all or a portion of their artwork to their alma mater. If this is your wish, it is important to contact the school ahead of time to make sure they can comply with your wishes. Further, if prominent enough, the school may allow you to have input on how your artwork will be used – in an exhibition, at an auction to benefit the school, or simply preserved for educational purposes.

If donating is not your wish or impractical, you can simply create a testamentary Trust that is created upon your death. You would name a Trustee to take charge of your artwork, literary works, or musical compositions upon your death. This individual could be given wide latitude in deciding how to preserve your works.

What about unfinished works? Some artists prefer unfinished works be destroyed – your preference should be documented.

SALE OF ARTWORK UPON YOUR DEATH. If, instead, you want your heirs to reap some commercial benefit from your work, then steps should be taken to set up a Trust, foundation, or LLC during your lifetime or upon your death. This option involves making sure there is enough money allocated for insurance and to properly store the artwork in a studio or storage facility.

Whichever organizational structure is decided upon, there must be an agreement as to how commissions and expenses will be paid. An individual must be appointed to head the foundation, Trust, or LLC. This could be a family member or an independent professional. If naming a family member or friend, make sure that they have the authority to hire professionals if needed. For example, you will need to avoid novice mistakes such as the “bulk discount” phenomenon – the idea being that if all of the art in your estate is put up for sale at once, the prices will drop and each individual piece will therefore be worth less.

Much as you would with any asset, you direct how the proceeds from sales of your artwork are distributed to your beneficiaries. Will your beneficiaries receive all the net proceeds outright or in trust? Such beneficiary Trusts could be structured to avoid estate taxes on their death and benefit future generations. A Bypass Trust structure could provide income to a spouse for life and the remainder to children and grandchildren – a popular option for blended families. If an LLC, beneficiaries could share in assets based on their percentage of the LLC interest, without having to parse out artwork.

INTELLECTUAL PROPERTY AT DEATH. You need to also consider the intellectual property rights in the artwork. Contrary to popular belief, “copyright” is automatic and extends to “original works of authorship fixed in any tangible medium of expression” and lasts for the life of the artist plus 70 years. Copyright vests in the creator at the time the work is made and is distinct from the physical art piece. For example, even if you sell a physical painting, you retain the copyright in the artwork unless you include that right in the sale – in writing.

Copyright includes the legal right to make and distribute copies and “derivative works.” These copyrights can be licensed or assigned permanently or for a limited time. You would not only want your heirs to benefit from such licensing fees or royalties, but control how your work can be used. You could consider granting copyright in one or more specific art pieces to a local non-profit.

Without a Will or Trust that thoughtfully lays out your wishes, you will have no control over your art at death. It is important to choose the right people to preserve your legacy and give them clear directions. You also want to avoid discord between family members. Remember that Pablo Picasso died without a Will – and the estate ended up paying $30 million dollars just in attorneys' fees.

If you are an artist, author, musician, or songwriter and have questions about the estate planning issues unique to artists, give us a call at 253.858.5434 to set up an appointment today. We represent clients throughout Washington and Idaho and are available to meet in person, by phone, or via video conference.

If you've heard your personal injury claim referred to as a "MIST" case, you may be wondering what this term means and how it affects your right to compensation.

If you’ve heard your personal injury claim referred to as a MIST case, you may be wondering what this term means and how it affects your right to compensation. MIST is an acronym for "Minor Impact-Soft Tissue." This terminology was first adopted in the 1990s, when insurance companies began to claim that vehicle occupants can’t sustain serious or permanent injuries from low speed collisions with minimal property damage. There is little scientific basis for this statement, but the expression still remains.

ABOUT MIST CASES. Any type of auto collision involving connective tissue injuries instead of broken bones is a MIST case, although the majority of MIST cases are collisions with less than $1,500 in property damage. The four connective tissue injuries commonly involved in a MIST case are whiplash, sprains, strains, and contusions.

* Whiplash. Also referred to as a cervical strain or sprain, whiplash is caused by the violent jerking of your neck back and forth due to the impact of the collision — similar to how you would crack a whip. This condition can cause headaches, dizziness, sleep disturbances, memory or concentration issues, and chronic pain in the back and neck.

* Sprain. A sprain is a stretch or tear of a ligament in one of the body’s joints such as the arm, wrist, knee, or ankle. Sprains can cause pain and swelling that make it difficult to complete daily activities. Treatment usually involves a brace or splint to immobilize the impacted area while it heals. Physical therapy or corrective surgery may be needed in more serious cases.

* Strains. Strains occur when a muscle or tendon is stretched or torn. When someone is involved in car crash, the back is the most common location for a strain. Treatment is similar to a sprain.

* Contusions. Contusions are injuries that occur when capillaries under the skin are ruptured. The area is discolored and painful. Most contusions heal over time, but it’s possible for muscle fibers and connective tissue under the skin to be permanently damaged in more severe cases.

COMPENSATION AVAILABLE IN A MIST CASE. Although MIST cases don’t involve broken bones, they can still be serious. A personal injury claim in a MIST case can seek compensation for:

* Medical expenses, including emergency room care, follow-up care, and any prescription pain medication.

* Loss of wages for time taken off work during the recovery period.

* Pain and suffering, including both the physical pain and the emotional trauma of the collision.

PROVING YOUR CASE. Since connective tissue injuries result in less obvious symptoms than broken bones, patients are often accused of faking or exaggerating their injuries. To prove a MIST case, you need copies of your medical records and testimony from your healthcare provider to verify the extent of your injuries. Photos of the crash scene and a journal detailing your symptoms throughout the recovery process may also be helpful in building a strong case.

With a MIST case, it’s very important that you follow your healthcare provider’s treatment recommendations precisely. Skipping appointments or returning to work earlier than your doctor recommends can be interpreted as an indication that your injuries aren’t as serious as you claim.

SEEKING LEGAL REPRESENTATION. Although MIST cases are considered smaller personal injury claims, that doesn’t mean you should forgo legal representation. In a MIST case, the insurance company is often eager to save money by claiming the victim is exaggerating the seriousness of the injury. Without a lawyer to represent your interests, you risk having your claim denied or being offered a settlement that’s less than what you deserve.

If you or a loved one has been injured in an auto collision, give us a call at 253.858.5434 to set up an appointment for a free initial consultation today.

If you've been hurt in a car crash, the medical bills, car repairs, lost wages, and other hardships can be daunting, but you do have legal options at your disposal.

An auto collision can change your life forever. If you've been injured by a negligent driver, the medical bills, car repairs, lost wages, and other hardships you face can be daunting, but you do have legal options at your disposal. We help people who have been injured or who lost loved ones in auto collisions seek compensation for their many hardships. We have extensive experience handling personal injury claims and a long track record of success in winning positive results for our clients. We have many resources at our disposal that help us investigate the causes of crashes, demonstrate liability, and present compelling cases for our clients.

We utilize investigative tools such as:

* Accident reconstruction experts

* Private investigators

* Accident scene photographers

If you have been injured by a careless or negligent driver, we will help you seek the compensation you need and deserve. Dealing with insurance companies is often the biggest challenge of handling an auto injury case. If you are contacted by the other driver’s insurance provider, you may be pressured into settling for far less than your case is worth, and you may be pressured into making statements that harm your own legal prospects.

We urge you to consult an experienced lawyer before accepting any offer from an insurance provider. We have the knowledge and experience to deal with them on your behalf and seek the most favorable results for you.

If you have been injured in an auto collision and are wondering how you will pay for your medical bills, lost wages and other hardships, we are here to help. Call 253.858.5434 to set up a free initial meeting to speak with an experienced lawyer.

Creating an estate plan or serving as a Trustee or as a Personal Representative can be overwhelming. We offer broad experience as well as personalized services to help you make sound decisions.

Creating an estate plan or serving as a Trustee or as a Personal Representative in a probate can be overwhelming. We offer broad experience as well as personalized services to help you make sound decisions.

ADVANCED ESTATE PLANNING. Washington is currently the only state in the nation to have an estate tax and no income tax. Further, Washington has a state tax exemption that is a different amount from the federal tax exemption and currently has no gift tax. We understand this complex tax framework and routinely design sophisticated estate plans to help our clients reduce federal estate and gift taxes as well as Washington estate taxes.

SUCCESSION PLANNING FOR FAMILY OWNED BUSINESSES. When it comes to succession planning, preparation is key. Once a business becomes successful and the founders reach retirement, the company must traverse a difficult path to successfully pass on the control and ownership of the business. From outlines and checklists to complete succession plans, we help our clients transition their prosperous businesses to their families, and sometimes to their employees.

PROBATE, POST-MORTEM TAX PLANING, AND TRUST ADMINISTRATION. When a death occurs in a family, we provide compassionate and efficient service at a difficult time. We help Personal Representatives manage and protect the assets of an estate, determine the validity of creditors' claims, resolve disputes among beneficiaries, and conduct valuable after-death tax planning. We also represent Trustees of Revocable Living Trusts and Irrevocable Trusts, providing counsel and direction regarding Trustee duties, Trust taxation, and Trust distribution matters.

If you have estate planning or estate administration questions, 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.

Estate planning is multifaceted, encompassing property, business, contracts, tax, and many other areas of the law.

Estate planning is multifaceted, encompassing property, business, contracts, tax, and many other areas of the law. It also serves a number of important purposes – it can help you avoid probate, minimize or eliminate estate taxes, and provide instructions on how to manage your affairs during your incapacity and settle matters and control your estate, even after your death. We can help you develop a new estate plan or work with you on modifications to an estate plan that is already in place.

BASIC ESTATE PLANNING. Basic estate planning documents include either a simple will or a "Pourover" Will with a Revocable Living Trust, Durable Power of Attorney for asset management, Directive to Physicians ("Living Will"), and a Health Care Power of Attorney for health care decision making in the event of your incapacity, to make sure that your wishes are respected.

There are additional estate planning considerations for non-U.S. citizens and their spouses, including the use of a Qualified Domestic Trust (QDOT) to defer the harsh tax treatment often given to non-U.S. citizens.

If you have children, you should also consider the benefits of a Trust or Special Needs Trust, to ensure that your children’s inheritance is properly managed and their assets protected.

ADVANCED ESTATE PLANNING. If the total value of your assets is over the estate tax exemption amount, which varies by year, you should explore the tax-saving benefits of a Marital Trust and Credit Shelter Trust, IRA Distribution Planning, as well as the possibility of incorporating an Irrevocable Life Insurance Trust, Charitable Trust, Family Limited Partnership and/or Family LLC into your estate plan.

Individuals with extensive property and/or business interests can benefit from Conservation Easements, Family Business Continuation Plans, “estate freezing” techniques, and wealth management services. An individual with business interests may also protect their assets from future creditors by establishing a Foreign Trust.

ESTATE ADMINISTRATION. We work closely with Personal Representatives, Guardians, and Trustees, helping them carry out their responsibilities in accordance with the law and the testator’s wishes. We advise clients on how to properly distribute estate assets through probate proceedings or Trust administration and ensure the most tax-efficient accounting and valuation of estate assets for purposes of the final income tax return and estate tax return preparation.

We can help save your loved ones considerable sums in probate fees and estate taxes, as well as a great deal of aggravation. Contact our office today at 253.858.5434 for a consultation. We represent clients throughout Washington and Idaho and are available to meet in person, by phone, or via video conference.

We help entrepreneurs start a new business. This might include getting the startup set up as a legal entity and drafting the documents the company may use with its customers and employees.

We help entrepreneurs through the early legal processes involved in creating a new business. Some of these items might include getting the startup set up as a legal entity with the State, assisting with securing funding through negotiating, creating, and modifying investment contracts, and drafting the initial set of documents the company may use with its customers and employees.

We also assist startups with protecting their intellectual property, ensuring compliance with local and federal laws, and drafting employment contracts.

Some of the things we do for small business owners include:

BUSINESS FORMATION. The earliest role that we play occurs when we assist clients with the business formation. This means that we can help you to establish your business as a legally recognized company with the state and federal government. We will consult with our clients to figure out what business entity is right for them, and then prepare the documentation to file with the government. This can include:

* C Corporations

* Limited Liability Companies (LLC)

* S Corporations

DRAFTING INITIAL LEGAL DOCUMENTS. Drafting legal documents is one of our most important jobs. Since legal compliance is essential to legitimate companies, startups hire us to draft their foundational legal agreements that comply with the regulations of their industries.

Investment contracts are a great example of document drafting that is crucial to the success of a startup. We negotiate and draw up fundraising documents for startups to provide to potential investors that outline the terms of the deal. Popular fundraising documents can include SAFE Notes and convertible notes.

Working with an experienced lawyer is helpful because many startup founders are hesitant to advocate for themselves with investors since they are often eager to receive capital to fund their ideas. Investors are also savvy and may take advantages of a naive founder to get a good deal with their investment.

Some legal documents we routinely draft for our clients include:

* Shareholders agreement

* LLC Operating Agreement

* Employment contract

* Privacy Policies

* Noncompete Agreements

* Service Contracts

CONTRACT REVIEW. Building positive working relationships is one of the biggest goals of any new startup. As a budding company, fostering positive interactions with others in the industry is a great way to foster growth and success starting in the early days of a company’s development.

Startups are responsible for drafting many of the legal agreements that go into keeping them in business, but external contracts are also required to sign at times. For example, if you need to license a certain piece of technology for your product to run successfully, you may be asked to sign a software license. We know how to read these contracts and which terms are mutually beneficial for their clients and which aren’t.

Having an experienced lawyer on your side for contract review means that you won’t be taken advantage of or end up in a situation you didn’t know you agreed to. Having a pair of expert eyes to review agreements is your best line of defense against being deceived.

EMPLOYEE STOCK OPTIONS. New companies sometimes have almost no money to offer their employees while they are in their infancy. To compensate for this, many startups offer employee stock options to members who are with the company in its early stages. We help company leadership decide how employee stock options work, how they are awarded, and what their vesting schedule might be. Stock options are complicated and making sure you work with a lawyer who has a deep understanding of how they work and what par is for the industry is important.

COMMERCIAL LEASE GUIDANCE. Startups need commercial space to grow their businesses. Commercial leases are much more complex than their residential counterparts and if businesses aren’t careful, they could get stuck in an agreement they’re not happy with. We are well-versed in the laws surrounding commercial leases and they are familiar with common terms and processes. We offer a helping hand to these leases to ensure clients get the best deal possible.

The new year is approaching and if you're thinking about starting up a new business in 2023, give us a call at 253.858.5434 to set up an appointment to see how we can help.

Wills vs. Trusts, Financial Powers of Attorney vs. Health Care Powers of Attorney, Testamentary Trusts vs. Living Trusts, and Revocable Trusts vs. Irrevocable Trusts

A Will is a legal document naming a Personal Representative to manage your estate upon your death. In addition to asset distribution, a Will may also name guardians for any minor children and give instructions for the disposition of remains.

If you have privacy concerns, you may prefer a Revocable Living Trust instead of a Will, which is a public document. A Revocable Living Trust might also be a better option if you own real estate outside of Washington or would simply like to avoid the long and often costly process of probate. We can review your situation to determine the strategy that best aligns with your particular needs and objectives.

DO I NEED A DURABLE POWER OF ATTORNEY HEALTH AND FINANCES? It is difficult to imagine the possibility of becoming incapacitated and unable to make your own decisions, but failure to appoint a Power of Attorney makes you extremely vulnerable to the possibility of court-appointed guardianship. A guardian is someone who is appointed by the court and tasked with handling your medical and financial affairs when you can no longer do so on your own. By proactively choosing your Power of Attorney you can ensure that this important job goes to the person you have chosen.

Not choosing your Power of Attorney can result in the appointment of a stranger. Someone who doesn’t know anything about you could be appointed to handle decisions about your health and finances. In essence, you may lose all of your rights by failing to address this critical aspect of the estate planning process, whereas taking matters into your own hands preserves your rights and allows you to choose, not the court.

The authority given to a Power of Attorney can be limited or general. A limited Power of Attorney allows the person of your choosing (known as the attorney-in-fact) to act on your behalf in limited situations, such as when you are traveling or otherwise unavailable to sign checks, conduct property transfers, or authorize limited actions. A general Power of Attorney, on the other hand, basically transfers all powers and rights to the attorney-in-fact, who can then make all decisions related to your health care and/or finances.

A POWER OF ATTORNEY FOR FINANCES VS. HEALTH CARE. Your person of choice may have control over your finances, medical care, or both. A Power of Attorney for finances is a legal document that gives the attorney-in-fact the right to control your financial affairs only, whereas a Health Care Power of Attorney authorizes control over your medical care. It is possible, but not required, for one named individual to be given both Powers of Attorney.

TRUSTS. A Trust is a legal document created by one party that holds property for the benefit of another party. The creator, known as the Trustor, transfers property to a Trustee, who then holds that property for the Trustor’s beneficiaries. Although the Trustee receives legal title to the property, they are obligated, by law, to act in accordance with the terms outlined by the Trust document.

There are two main types of Trusts: Revocable and Irrevocable. Revocable Trusts, commonly known as Living Trusts, give total control to the Trustor during their lifetime. The Trustor can continue to amend the Trust and can revoke or terminate it at any time as well. An Irrevocable Trust does not have this flexibility but it does allow the Trustor and their beneficiaries to avoid the public, often time-consuming, and costly process of probate.

REVOCABLE VS. IRREVOCABLE TRUSTS. A Revocable Trust allows the Trustor to maintain complete control over their assets, and still avoid probate. Irrevocable Trusts transfer control of property from the Trustor to the Trustee. Once an asset is placed in an Irrevocable Trust, it is no longer considered the property of the Trustor, and the Trustee gains full control. Furthermore, the Trust most often cannot be amended by the Trustor once created, and the Trustee and Trustor cannot be the same person, which is not the case with Revocable Trusts.

By placing assets in an Irrevocable Trust, the Trustor may become eligible for certain means-tested benefit programs, such as Social Security Disability or Medicaid. Since placing property into an Irrevocable Trust means it no longer belongs to the Trustor, the value of that asset cannot be counted against them.

Although Trusts usually cost more to set up than Wills due to their more complex nature, the cost savings are usually realized on the back end through the avoidance of probate.

If you have questions about Wills, Powers of Attorney, Trusts, or other estate planning tools and techniques, give us a call at 253.858.5434 to set up an appointment today.

Picking a guardian you would like to take over for you in raising your minor children if you pass away is an integral part of estate planning.

Estate planning allows you to ensure you’ve provided your family with as much guidance as possible for taking care of things once you’re gone. If you have children, that includes planning for what would happen to them if they are still minors when you pass away. One way to plan for your kids’ care is to pick a person you would like to take over for you in raising them if you can no longer do so. That person is called a guardian, and it would be their job to then act as the parent for your children. That includes housing, feeding, seeing to their education, and raising them if you cannot. Being able to have a say in who takes on that role is invaluable and relatively simple to do.

WHY GUARDIANSHIP IS NEEDED. There are a few situations that call for the appointment of a guardian:

* Child’s parents consent to the appointment of a guardian.

* Parental rights are terminated, leaving the child without someone acting in that parental role.

* The parents are unable to exercise their parental rights; for example, if the parents die or become incapacitated.

* Guardianship had already been granted but that guardian passed away or there is otherwise no current acting guardian.

HOW TO APPOINT A GUARDIAN. To make sure you are prepared for any of these instances where a court would find guardianship necessary, you can nominate who you would like to act in that role if ever needed. To do so, you should include a guardianship clause in your Will. This clause can list not only who you would like to act as guardian for your children if you can no longer care for them but also any back-ups you would like to take on that role if the first person listed cannot. It is important to list these back-ups because we never know what the future holds, and even if the person you list first is willing and able when you draft your Will, they may be unavailable if the time actually comes for them to take on that role. For example, if the person you have listed dies before you, whoever you list as a second option can then be appointed. If you have not listed a back-up, you end up back in square one. Listing back-ups, then, gives you the chance to plan for many scenarios.

WHAT IF YOU DO NOT SOMEONE AS GUARDIAN? There is also the possibility that you have someone you absolutely do not want to serve as your child’s guardian. If that is the case, you can say so in your Will and you can also create what is called a "confidential exclusion document." This is where you say who you do not want to be your child’s guardian and why, being as specific and detailed as possible. If the time comes and someone has to be appointed as your child’s guardian, your Personal Representative can let that person know that you have this confidential exclusion in place to prevent them from putting themselves forth as a possible guardian. Hopefully, that is enough to dissuade that person from fighting for guardianship but if it is not, your PR can present the confidential exclusion to the court to persuade the judge not to choose that person.

COUPLES AS GUARDIANS. Many people have a couple that they would choose to serve as guardians together. It is possible to list co-guardians, or two people to serve as guardian at one time, but you want to be precise about the scenarios in which those two people would serve together. For example, say you have two really good friends, Joe and Emily, who are married, and you would like them both to be co-guardians, but you really only want them to be guardians if they are working together. Meaning, you wouldn’t want just Emily to do it if Joe couldn’t help for whatever reason, or vise versa. If you just nominate them to serve as co-guardians with no additional stipulation, you can run into situations where one is no longer there and the other is still allowed to serve as guardian alone. For example, one of them might predecease you, leaving one of them to serve as guardian alone. Therefore, if Emily died before the guardianship was necessary, Joe would still be nominated to serve on his own as guardian. There is also the possibility that Joe and Emily get a divorce. If you just list them as co-guardians, and they get divorced, they would still be able to serve together as co-guardians. To avoid any of those possible scenarios you can specify “Joe and Emily as co-guardians, only if they remain married” or something similar. Then you can list who you would like to serve in that role if they are no longer married —those back-ups.

COURT HEARINGS. Appointing a guardian still requires a court hearing, even if you have named who you would like to be your child’s guardian in your Will. This is so that the judge has an opportunity to make sure that, at the time the guardianship would be established, the child’s best interest would be served by appointing the person you have listed. The judge also considers the opinion of the minor in question, if the minor is 14 or older. Finally, the judge considers the opinion of the parents, which is why a guardianship clause in your Will is so important. That judge is going to put a lot of weight behind your wishes in your Will and will likely appoint that person if everything checks out. If you do not nominate someone to serve as your child’s guardian in your Will, the judge still has to make that decision but will be doing so without any help from you as to who you would trust to take care of your child in your place.

HOW WE CAN HELP. Deciding who you want to raise your children for you if you no longer can is a difficult decision, but it is certainly better be included in that decision-making process than leave it completely up to the court. While you’re planning for taking care of them financially by leaving them certain assets after you die, you should also plan for who will be housing, raising, and caring for them generally in your estate plan. Nominating a guardian in your Will is another important aspect of estate planning that allows you to help take care of your family after you’re gone.

We are here to answer any questions you have regarding guardianship and securing your child’s future. Contact us at 253.858.5434 to schedule a meeting.

The process of pursuing a personal injury claim or lawsuit can be a long one. There are a number of steps that must take place before funds can be disbursed.

The process of pursuing a personal injury claim or lawsuit can be a long one. Settling the case before going to trial can be a very exciting step, however, it’s important to remember that it’s not the end. It’s not a simple payment of money, but the ending of a legal obligation. There are a number of steps that must take place before any of the funds can be disbursed.

THE CASE IS SETTLED. The first step in the disbursement process is having both sides agree upon terms to resolve the lawsuit. Once both sides agree, a settlement agreement is drafted. These agreements outline the timeframe and amount that has to be paid. Generally, there are two main types of payment: a lump sum or a payment plan. If the agreement states the money will be paid in a lump sum, the defendant (or the defendant's insurance company) will normally have 30 or 60 days to pay the money. If both sides agree to a payment plan, the timeframe will be outlined in the settlement agreement. Once both sides have signed the agreement, the lawsuit is typically dismissed.

RECONCILING THE BOOKS. Once the final agreement has been signed and the plaintiff's lawyer has received the settlement funds, the process of disbursement can begin. The funds are placed into a trust account so that all costs, fees, and liens can be paid. Normally it takes a few days to a week (depending on the size of the check) for the check to clear the bank and be available in the trust account. Once the funds become available, the following steps happen:

* Attorney’s Fees. The first expense that is deducted is the attorney’s fees. They are a percentage of the total amount recovered. It is important to remember that the attorney’s fees are deducted before any other expenses are taken out of the settlement including bills, liens, expert fees, etc. This process is generally explained in the engagement agreement and the initial signup meeting.

* Case Expenses. When the lawyer agreed to take the case on a contingency fee basis, they probably agreed to advance any expenses or costs that may be incurred while pursuing the case and then be reimbursed if they were successful in getting compensation for the client. Any case expenses will be paid back to the lawyer from the remaining settlement funds (not from the attorney’s fees). These may include ordering medical bills, hiring an expert, court fees, paying for a deposition, or any travel expenses.

* Any Known Medical Bills or Liens. The lawyer will pay any bills or liens that they are aware of from the settlement funds before disbursing any money to the client. These may come from Medicare, Medicaid, an insurance company or a medical provider. It is always best practice to give any invoices or notices of liens that you receive to your lawyer as soon as you receive them. Normally, the lawyer will try to negotiate with the insurance companies to get the bills or liens lowered and this process can take some time. Providing any bills or liens as soon as you receive them can help expedite the process.

* The Remaining Money is Given to the Client. After all the expenses, fees, and liens have been paid, the client will receive the remaining settlement funds. Typically, a settlement statement will be prepared and signed before the money is disbursed.

VARIABLES THAT MAY AFFECT THE PROCESS OR TIMEFRAME. While the above is the general process for disbursing settlement funds, there are a few things that may affect how quickly the final settlement check may be disbursed. Some of the most common variables that may affect the process and timeframe are:

* If the Lawsuit Involves a Minor. Settlements involving minors are handled differently than those for adults. For example, settlement funds may put into a Trust or be used to purchase an annuity that will invest the money until the minor reaches a certain age, and then pay benefits when the child becomes an adult.

* Lien Finalization. If there is a lien from Medicare or Medicaid or a PIP insurer, it must be satisfied before any of the funds can be dispersed. Sometimes it can take Medicare or Medicaid or the PIP insurance company some time to finalize the lien amount. While the lawyer can follow up on the lien finalization, it is something that is ultimately out of their hands.

* Defendant is Slow to Pay. If there are logistical difficulties on the defendant’s end on processing the payment, that can slow down the process. For example, if the check is not able to be deposited and has to be reissued, this will slow down the process.

* Probate Issues. In cases where an injured client has died, the probate process must be completed prior to the disbursement of the settlement. The probate process has a lot of different steps and each and every one has to be completed before any money from the settlement can be disbursed.

It is important to remember that every case is different. While there is a general process for disbursement that most personal injury claims or lawsuits will follow, the exact process will differ for each case. However, having an understanding of the general disbursement process can help manage expectations for when the final funds will be disbursed.

If you or a friend or family member has been injured in an auto collision and need legal representation, give us a call at 253.858.5434 and set up an appointment for a free initial consultation today.

Most people need to update their estate plans every few years because life, finances, relationships, and the law are always changing.

If you already have an estate plan in place, you might think you're all set and don't need to think about estate planning ever again. However, most people actually need to update their estate plan every few years because life, finances, relationships, and the law are always changing. Many changes happen over the years, and it is essential that your estate plan stays current to reflect those changes and the impact on your wishes.

WHAT IS INCLUDED IN AN ESTATE PLAN? An estate plan is a set of documents that allows you to plan for unexpected situations, end-of-life situations, and your wishes for what happens to your assets after you die. An estate plan should include:

* A Will detailing who will receive your assets after you die and who will be the Personal Representative to carry out your wishes;

* A Directive to Physicians ("Living Will') specifying what types of end-of-life care you do and do not consent to, such as ventilators and feeding tubes;

* A Health Care Power of Attorney choosing a person to make health care decisions for you if you are ever unable to make your own decisions; and

* A financial Durable Power of Attorney giving authority to a person you choose to manage your financial affairs if you are unable to do so.

An estate plan may also include a Revocable Living Trust, which takes ownership of your assets during your lifetime and distributes them to the people you choose after your death while allowing you to use and spend your assets during your life as you normally would.

LIFE CHANGES THAT TRIGGER AN ESTATE PLAN REVISION. There are many changes that could happen in your life that should cause you to review your estate plan and make changes as necessary. These could include:

* You got a divorce and need to remove your ex from all of your estate planning documents.

* You got married and want to add your spouse to your plan.

* You have remarried and need to include your current spouse and possibly your stepchildren in your estate plan.

* You had children and want to add them as beneficiaries in a Will or Trust and need to name a guardian for them.

* One of your children or grandchildren is disabled or has special needs and you want to provide for their care after you die through a Special Needs Trust.

* Your children are now adults and you want them to hold your Power of Attorney or be Personal Representative of your estate.

* You have grandchildren and would like to add them as beneficiaries.

* You've become estranged from a family member or friend you previously included in your plan and now want to remove them.

* Your financial situation has changed and you want your estate plan to include new assets or you need to remove assets from your plan that you no longer own.

* You moved to another state and want to make sure your estate plan is valid in your new state.

* Someone you listed as a beneficiary, Personal Representative, Power of Attorney, guardian, or Trustee died and you need to name someone else in their place.

* Your health has changed and you have information that changes your position about end-of-life care.

* You decided that you want to leave money or assets to a charity.

* You started a new business and need to create a business succession plan.

Estate plans should not be static. They should change and grow as your life evolves. Make it a habit to review your estate plan every three to five years or whenever a major life change occurs.

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.

In Washington, married couples can avoid probate by signing a Community Property Survivorship Agreement.

In Washington, married couples can avoid probate by signing a Community Property Survivorship Agreement (CPSA). In the agreement, the couple agrees that when one of them dies, all of that person's property will pass directly to the other. This kind of agreement works well for many couples, but it's not right for everyone. Use a community property agreement only if you want all of your property to go to your spouse or partner.

HOW A COMMUNITY PROPERTY SURVIVORSHIP AGREEMENT WORKS. A CPAS states that (1) all property the couple owns is community property; (2) all property the couple acquires in the future is community property; and (3) when one spouse dies, their 1/2 of the community property vests automatically in their surviving spouse. Washington law permits all community property passed through a CPSA to be transferred to the surviving spouse without probate, so the agreement keeps all of the deceased person's property out of probate.

To use a CPSA, you and your spouse must agree to leave everything to each other, complete the document, and sign it in front of a notary. When one spouse or partner dies, the survivor will become the owner of the deceased person's property, without probate. Title to all real estate is cleared merely by recording the CPSA in every county where the couple owns real estate.

LIMITATIONS TO A COMMUNITY PROPERTY SURVIVORSHIP AGREEMENT. CPSAs are not for everyone. They involve some very important limitations. For example, a simple CPSA does not avoid probate for the surviving spouse, remains in force if you separate (absent some language to the contrary in the agreement itself), doesn't work if you die simultaneously, does not allow gifts to children, does not avoid probate for out-of-state real estate, and may affect eligibility for government benefits.

LIVING WITH A COMMUNITY PROPERTY SURVIVORSHIP AGREEMENT. Even if a CPSA is right for you, you'll need to reevaluate your plan if your circumstances change, and it won't be the only estate planning tool you'll need. You can amend or revoke your community property agreement at any time. To modify a CPSA, have your lawyer draft a new one that meets your specific needs. To revoke your CPSA, both you and your spouse just need to sign a simple revocation.

Revoke your CPSA if you decide to separate, if you make a new estate plan for distributing your property, if or you or your spouse become dependent on SSI or Medicaid, or if your estate grows substantially such that more sophisticated tax planning becomes necessary as part of your general estate plan as a CPSA can defeat the creation of certain estate-tax avoiding Trusts.

ADDITIONAL ESTATE PLANNING. It is wise to pair a CPSA with a Will. A Will lets you name a Personal Representative, nominate guardians for your minor children, and provide a backup plan in case you and your spouse die simultaneously. In your Wills, you and your spouse should each leave all of your property to each other, and then name alternates who will take the property upon the death of the second spouse to die. If there are any inconsistencies between your will and your CPSA, your CPSA will be followed.

It's also a good idea to make a Directive to Physicians, a Health Care Power of Attorney, and a Durable Power of Attorney for finances.

A Directive to Physicians lays out your wishes for end-of-life medical treatment in case you ever cannot speak for yourself. And using a Health Care Power of Attorney, you can name a person to make healthcare decisions for you if you can't.

A Durable Power of Attorney for finances lets you name someone who will take care of your finances if you can no longer do it yourself. In this document, you can also give that person (called your attorney-in-fact) the power to change or revoke your CPSA. This could be very important if you or your spouse became incapacitated. Otherwise, to revoke or modify a CPSA, a court would have to appoint a guardian for the incapacitated person.

If you have questions about Community Property Survivorship Agreements or other estate planning documents, 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.