If you own a house and/or have minor children, you should have an estate plan. It's just that simple. If you have questions about why it's important, give us a call at 253.858.5434 and we'll be happy to answer them for you.
When someone is hurt due to the actions (or inaction) of another, they have the right to compensation for the harm done to them. Personal injury claims often follow an auto collision, a slip-and-fall incident, or a medical mishap. Broken bones, lacerations, and other physical injuries are easy to attribute to a specific incident. But can a personal injury be mental? Long after the physical wounds heal, victims of serious crashes sometimes continue to suffer from psychological damage. It is possible to receive a fair settlement for the treatment of these issues, just as they can for their medical expenses.
THE NATURE OF PSYCHOLOGICAL INJURIES. Victims are often reluctant to seek help for their psychological distress. They may feel they should be able to “shake it off” or “get over it.” But according to the Anxiety and Depression Association of America:
“…people occasionally assume trauma has to be something as significant as a death of a loved one or a natural disaster, but trauma is anything that is 'deeply distressing or disturbing,' and that looks different for each individual. It’s important to remember that you don’t even necessarily have to be the driver in the collision for it to be traumatic, you can be the passenger or a bystander for it to have its effects on you.”
Personal injuries to one’s mental health can show up in three different variations: A traumatic brain injury, the emotional trauma of the incident itself, or the inability to cope with the aftermath of the incident. Every person is different, so not everyone will have the same degree of suffering. Like some delayed injuries, it can also take days, weeks, or even months for some of these mental issues to show up.
A violent collision or blow to the head can cause a concussion or traumatic brain injury. These are physical issues that require medical treatment, but they can also result in mental or cognitive impairment. After a TBI, a victim might have memory loss, trouble concentrating, and problems with reasoning and problem-solving. These symptoms may improve over time as the injury to the brain heals, but they can be permanent, requiring re-learning basic tasks or assistance with daily living.
The traumatic experience of being in a horrible crash can also cause mental disorders. The memories of fear and pain as well as the trauma of witnessing others’ harm or even death can be devastating. Victims may suffer from insomnia, fatigue, loss of appetite, and emotions such as fear, sadness, or anger that outlast any physical injuries.
Serious collisions can also change a person’s life forever. Visible scars, limps, lost limbs, or permanent disability may be their new reality. They may no longer be able to participate in activities that once brought enjoyment. Or worse, they could be paralyzed or blind. The inability to go back to “normal” can cause psychological distress and mental disorders. People struggling to cope with these changes can show the same signs as emotional trauma. Mood swings, insomnia, and weight loss all can occur.
IDENTIFYING MENTAL ILLNESS INJURY. Psychological problems after a bad collision should be evaluated and treated with the help of a mental health professional, just as physical injuries should be examined and tended to by a doctor. That evaluation may include diagnosis of a number of different mental health issues. Here are the most common disorders that account for a mental personal injury. Their symptoms can overlap and it is possible to suffer from more than one condition at a time.
* PTSD. Post Traumatic Stress Disorder is common in people who have experienced a traumatic event. Certain situations, sights, or sounds can trigger them into reliving the shock and stress of the incident. They may suffer from nightmares, become depressed, or be hyper-alert. This can lead to insomnia, mood swings, and the use of drugs or alcohol in an effort to self-medicate and cope with what’s happened.
* Clinical Depression. Feelings of sadness and grief can consume a person after a collision, and they may suffer from depression. They may lose interest in activities they once enjoyed and become lethargic or moody. This can be extremely disruptive to their lives and interactions with family members and friends.
* Anxiety Disorder. A trauma like a serious car crash is stressful and frightening. It can leave a victim overly tense and jumpy. They may worry about things constantly. The constant stress can result in trouble sleeping and an inability to relax. Stress-related physical conditions like increased blood pressure or gastrointestinal issues might develop.
* Phobias. Along with anxiety, a trauma may trigger an irrational fear of something specific. After a collision, a victim may be afraid to drive or even get into a car. If they were hit as a pedestrian, they could become fearful of crossing the street. A dog bite victim could become terrified of dogs. These phobias, especially the ones involving transportation, can interfere with a person’s ability to get to work or go about their daily routine.
* Chronic Pain Disorder. Collisions can sometimes cause injuries that are hard to diagnose and hard to tie directly to the incident. Conditions like tinnitus and sciatica are two examples. A victim can also suffer from acute pain that is caused by psychological stress. The feelings of pain are real, but there is no direct link to any physical injury and they may be non-specific. Chronic pain disorder is often accompanied by the symptoms of other mental disorders, such as insomnia, depression, and anxiety.
COMPENSATION FOR PSYCHOLOGICAL INJURIES. The person whose negligence leaves someone with a psychological personal injury is liable for the damage they have caused. This includes reimbursement for any counseling, medication, hospitalization, or psychological treatment that is necessary to ease their suffering and get them back to the condition they were in before the accident. If a victim’s psychological issues are chronic and result in a long recuperation or permanent disability, they may seek compensation for several losses:
* Lost wages and future income, if they are unable to work
* Ongoing therapy and medication
* Caregivers for assistance with daily life
* Emotional distress or pain and suffering
The first step in any type of personal injury case is to prove liability. If a victim has injuries from an incident that was not their fault, they deserve compensation. In order to prove psychological personal injuries, victims need to seek professional treatment as soon as possible. Ideally, a mental health professional will be able to make a specific diagnosis using the American Psychiatric Association Diagnostic and Statistical Manual of Mental Disorders (DSM). This isn’t always possible, as some conditions are not tangible or measurable. There is no one test to pinpoint mental illness. But just as with physical injuries, psychological injuries can be proven with documentation and statements made by professionals, as well as with receipts for treatment.
GETTING COMPENSATION WITH A LAWYER'S HELP. It is useful to get a lawyer’s advice with any personal injury case, especially one involving a psychological injury. Psychological disorders can be difficult to prove and to link directly to a collision. Defendants and their insurance companies may try to claim that the symptoms are not real or that the victim is faking or overreacting. Chronic stress, anxiety, or PTSD can severely disrupt someone’s pursuit of a comfortable, productive life. An experienced lawyer can help determine the value of both the monetary and non-financial losses suffered in an auto collision. We can start the process of getting you the fair settlement you deserve for your physical and emotional well-being. Give us a call at 253.858.5434 to set up an appointment for a free initial consultation today.
The true value of creating an estate plan comes in many forms. For some people, the value comes in the most obvious way: through direct gifts of property and money to our family members when we die. For some, the value comes in making sure someone is legally empowered to make decisions for them when they are in the hospital, travelling abroad, or otherwise unable. At our law firm, we think that there is another form of value to be found in estate planning: the value of giving a gift of guidance, intention, and values to friends and family who survive you.
THE ACT OF CREATING AN ESTATE PLAN IS AN ACT OF GIVING. We are not referring to the possible transfer of assets to our loved ones when we die, but to the relief of guilt, confusion, and anxiety by making our intentions known in writing to those people we leave behind. The difficult situations we face — and the tough decisions we make — no longer fall to our loved ones.
A thorough estate plan allows us to designate who will receive property from us when we die, and how they will receive it. The most common and urgent example is creating a plan that sets aside assets passing to minor children. The assets can be invested and managed for the minor children, used to pay for health care and education, with the rest given to the children when they have grown into responsible adults. This tool is called a Trust, and can be created right in your Will or in a Revocable Living Trust Agreement.
Estate planning documents are also critical to protect us from severe and permanent disruption to our business and finances during incapacity. While many people see the primary purpose of estate planning as controlling how their estate is distributed, for those with small businesses and complex day-to-day asset management, the incapacity planning side of estate planning can be incredibly important. This is done with your Durable Power of Attorney and Health Care Power of Attorney (though there may be more involved, depending on the complexity of your plan).
If you are aware of possible conflicts or family dynamics that could flare up as a result of your death, it is even more important to make your wishes and intentions known by communicating them to your family during your life and after your death; your estate plan is your means of doing this.
IT IS IN YOUR BEST INTEREST TO CREATE AN ESTATE PLAN AND KEEP IT UPDATED. Through this process we are able to remove a big burden on our loved one when we die. Removing many legal issues and decisions from the picture allows the people who survive us to focus on coming together, grieving, and processing.
An experienced estate planning lawyer can help you identify any issues with your family or your assets that an estate plan can help put to rest. When done properly, your estate plan will be a gift to both yourself and your family. We are here to help; contact us today at 253.858.5434.
A "Disclaimer Trust" is an estate planning technique where a married couple incorporates an Irrevocable Trust into their Wills or Revocable Living Trust funded only funded if the surviving spouse chooses to disclaim an asset. A Disclaimer Trust is voluntarily funded, so the surviving spouse is given maximum flexibility.
WHAT IS A DISCLAIMER? Inheritances are gifts. No person “must” take a gift. A beneficiary must “claim” their inheritance. If a beneficiary does not want an inheritance, that beneficiary can “disclaim” the inheritance. A “disclaimer” is when the beneficiary formally decides to not take the inheritance.
Example 1: Father’s life insurance names Son primary beneficiary and Grandson as contingent beneficiary. At Father’s death, Son files a disclaimer with the life insurance company disclaiming the right to receive the death benefit. The life insurance proceeds pass to Grandson.
Example 2: Spouse A’s Will says the family vacation home on the Hood Canal passes to Spouse B if Spouse B survives Spouse A but, if Spouse B does not, to Spouse A's daughter from a prior marriage. At Spouse A’s death, Spouse B files a formal disclaimer, disclaiming the Hood Canal property. The vacation home passes to Daughter.
WHAT IS A DISCLAIMER TRUST? A Disclaimer Trust is part of a plan where a married couple uses this arrangement to provide the survivor the option to “claim” the inheritance or “disclaim” the inheritance into a protective Trust. The Will or Revocable Living Trust can direct where disclaimed assets pass. When estate planning with a Disclaimer Trust, the Will or Revocable Living Trust states that disclaimed assets pour into the protective “Disclaimer Trust” for the surviving spouse.
Example: Spouse A’s Will gives all assets outright to Spouse B but, if Spouse B disclaims any asset the Will’s terms transfer the property into a protective Trust for Spouse B. Spouse B disclaims the funds in Spouse A’s bank account, which then pour into the Disclaimer Trust. The Trustee opens an account in the Trust’s name and invests the money. The Trustee has broad powers to use this money for Spouse B's benefit.
WHAT IS THE PURPOSE OF A DISCLAIMER TRUST? A Disclaimer Trust is a flexible tool, often perfect for when the spouses wish to leave each other all assets should one die. The Wills are drafted to state that all assets pass to the surviving spouse but, if the survivor disclaims, the disclaimed asset pours into a protective Trust for the survivor. This way the survivor can benefit from the assets, but have them be sheltered from future creditors, bad marriages, and preserve estate tax exclusions.
For example, Spouse A’s Will says all assets pass to Spouse B. But, if Spouse B disclaims any asset, it pours into a Disclaimer Trust for Spouse B. Spouse A dies. Spouse B has plenty of time to review the assets, consult with their advisors, and then determine what is best for their circumstances at the time. Spouse B might decide to take all the assets. But they may also disclaim some or all of these assets. The choice is completely up to the surviving spouse.
What Spouse B disclaims pours into a Trust for their benefit. As Spouse B has never owned these assets, they are now sheltered from their future creditors and their future spouse, all while still preserving Spouse A's application exclusion amount for estate tax purposes. At Spouse B's death, the Trust can require the remaining assets to go to Spouse A’s children.
If you have any questions about Disclaimer Trusts or any other estate planning topics, please contact us to schedule a consultation. For more than 26 years, we have focused estate planning. We’ve seen it all, and this experience allows us to explain complex estate law and planning techniques clearly and concisely. We make it easy for you to understand Disclaimer Trusts and estate planning so you can make the best decisions for yourself and your family. Give us a call at 253.858.5434 today.
You don't necessarily need to hire a lawyer when starting an LLC. Many states permit you to register your business as an LLC through the Secretary of State's website. However, it comes with legal paperwork and hassle. Furthermore, each state has different laws regarding the regulation of LLCs, which may not be easy to comprehend without the help of a lawyer. You can get into trouble with the IRS, the law, or your local tax authority if you do not proceed with LLCs with a thorough understanding of the law. A lawyer can help you save time and avoid problems. We do so by:
* Determining the eligibility of your business to register as an LLC
* Drafting and filing the Certificate of Formation for your business.
* Helping you understand state-specific LLC laws and how to comply with them
* Maintaining detailed records if needed for lawsuits or audits.
A Limited Liability Company, or LLC, protects your assets and guards your company against any liability that might affect your business. It is a legal entity that has a hybrid structure. It contains attributes of both a partnership and a corporation. For example, when thinking about an LLC vs corporation, a corporation limits the liabilities of its owner, and so does an LLC. Meanwhile, when comparing an LLC vs partnership, an LLC is also a pass-through entity for tax purposes like a partnership. It means that individual members will be taxed only once as a form of personal income on any profit the LLC makes.
BENEFITS OF USING A LAWYER. There are many benefits of using a lawyer to form an LLC. A legal consultation can help an owner:
* Understand the advantages of forming an LLC.
* Determine how to get the most out of incorporating the business.
* Understand the shortcomings of different entities in terms of liability and tax.
* Get started and keep their business compliant as they expand, raise money, or hire employees.
* Help draft and file complex paperwork such as the Certificate of Formation.
* Understand business laws that govern the state the LLC is in.
Therefore, if you hire a lawyer to undertake these tasks, you will save a lot of time and energy, which could invest in your business.
DIFFERENCE BETWEEN AN LLC AND AN S CORP. An LLC an S Corp are often discussed together, but they are two different things. An LLC can attain S Corp status if it meets specific criteria. However, LLCs and S Corps both require different management and shareholder structure. In addition, they have unique reporting requirements. There are several differences; these are:
* A limited liability company is a legal framework for businesses. At the same time, an S Corp is a tax classification.
* S Corp has a more formal structure than an LLC: A corporation requires you to hold meetings for shareholders, file annual reports, put together a board of directors, and make other functional decisions. On the other hand, an LLC can be lenient regarding the formality and structure of a business.
* An S Corp is more complicated than an LLC to set up: LLCs usually require less paperwork than an S Corp setup. On the other hand, an S Corp setup requires a thorough inspection and must be filed with the appropriate authorities.
* Corporations can only issue Stocks: LLCs have membership interests. As a result, members have a share in the company's ownership. On the other hand, S Corp provides convertible preferred stock, so investors favor investing in such corporations.
While it is not mandatory to hire a lawyer to form an LLC, it is still a good practice if you do so, especially when you are a small business owner. Hiring a lawyer can help ease forming an LLC and give you the essential aid when protecting your enterprise.
If you're starting a new business and have questions about forming an LLC, 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 have kids away at college, you may be astonished to find that you are not entitled to access medical information or participate in important decisions regarding your children’s healthcare or finances during times of emergency. Why? Although they may still be students or have just started working, in the eyes of the law they are adults. As adults, their parents have no automatic right to know or do anything. Unfortunately most adult children, whether away at college or newly working, have not executed powers of attorney or other advance healthcare directives. We will help you and your children be prepared for any of life uncertainties. We can prepare all of the necessary documents that can authorize you, as a parent, and make sure your adult children have these important documents in place. This will allow you to rest a bit easier when your children leave the nest.
PLANNING FOR GROWN CHILDREN. Although your nest may be empty, your children remain the focus of your concerns and will always be your children regardless of age. In the past it was common to distribute outright to children. Times have changed and doing so today risks what you have worked so hard to build. Outright distributions may wind up in the hands of your child’s ex spouse, a bankruptcy trustee, or a child’s creditor. Unsteady job markets, divorces, and litigation are now commonplace and parents want to protect their children. In some situations, parents need to protect their children from themselves. In planning for your children, we will discuss opportunities to insulate your child’s inheritance from all of those risks.
PLANNING FOR FAMILIES. At our law firm our guiding principle is to provide quality estate planning services tailored to each family’s specific needs and goals. We work to provide you with the knowledge needed and to implement tailored safeguards to protect your family’s future. It is our honor and privilege to help families make sure their loved ones are taken care of. Having a plan in place is truly one of the greatest ways in which to say “I love you” to your family.
To create an estate plan that ensures that your children will be provided for, 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.
Whether you are just starting out in your career or preparing for your retirement years, it’s never too early to consider how you want your financial affairs to be managed if something happens to you and you are not able to exercise control over your finances for one reason or another. One solution is to grant power of attorney to your spouse, sibling, adult child or close friend — someone you trust to act wisely and in your best interest. This attorney-in-fact, or agent, has the legal right to make the decisions you would make if you were able.
Powers of attorney can be a helpful way to prepare for the future, but many factors will determine the type of power of attorney you need and whether it will hold up when it needs to. And, remember, always exercise caution when you vest someone with the authority to make decisions about your finances.
WHAT IS A POWER OF ATTORNEY? A power of attorney is a legal document you sign to grant someone you trust authority to make decisions on your behalf. You must sign when you are still mentally competent for your power of attorney to be valid. This is a good reason to plan early for your later years, so that your affairs are in order.
WHY DO I NEED ONE? A power of attorney arrangement can be important — even essential — to managing your financial affairs in the event you unexpectedly become unable to manage things on your own. Planning for the future with a power of attorney could minimize complications to achieving your financial goals, but it may feel like a daunting task. Depending on your circumstances, you may want to talk to a lawyer with experience in these types of arrangements.
WHAT ARE THE REQUIREMENTS FOR A POWER OF ATTORNEY? The laws governing powers of attorney are specific to each state, so it is important that you understand the applicable laws both where you live, and where you have assets, before you set up your power of attorney. Most states require that your power of attorney be in writing, witnessed, and notarized. You should contact a lawyer licensed in your state to ensure that you understand the local laws so your power of attorney meets legal standards.
ARE ALL POWERS OF ATTORNEY THE SAME? When it comes to signing a power of attorney, you have options. There are different types depending on what your needs are. The type of power of attorney you choose matters because it will determine when such authority takes effect and when it is rescinded. For instance, non-durable powers of attorney are automatically revoked if you become physically or mentally incapacitated. So you may prefer to grant your agent what’s called a durable power of attorney, which remains in effect even if you become incapacitated. If your power of attorney isn’t durable, a court may need to appoint a guardian to act for you if you become incapacitated. This can be a time-consuming, complicated and expensive process for you and your family, and you may not have a say about who the court will appoint to manage your affairs.
CAN I MAKE CHANGES TO A POWER OF ATTORNEY? With any type of power of attorney, you have the right to revoke or change your agent’s authority at any time as long as you are not mentally incapacitated. If you decide to change or revoke your power of attorney, inform any parties that may rely on it as soon as possible. If you do not provide this notice, parties may reasonably rely on the old power of attorney, and you can be bound by the actions of the agent.
If you or a member of your family has questions about powers of attorney, give us 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.
T-bone auto collisions – also commonly called side-impact collisions – are responsible for more than 23% of all vehicular fatalities, according to data from the Insurance Institute for Highway Safety (IIHS). Those who are fortunate to walk away from a side-impact crash are often seriously injured, which leads to costly medical bills and lost wages due to missed time at work.
What is an injured person to do in a situation like this? If you're badly injured in a crash due to someone else's negligence, it may be in your best interests to contact a lawyer to learn more about your legal rights. We have nearly 25 years of experience helping t-bone collision victims throughout the state get the best possible result for their personal injury claims.
CAUSES OF T-BONE COLLISIONS. A T-bone collision occurs when one vehicle collides with another from the side, resulting in the two (or more) vehicles forming the shape of a “T." These incidents are often caused by one vehicle failing to stop at a stop sign or red light and striking the side of another vehicle which is traveling in a perpendicular direction.
Of course, there are likely a number of other plausible explanations for a T-bone crash. In our experience with a variety of auto collision cases, failure to yield or running a red light is the most common reason for side-impact accidents.
The following are common causes of T-bone accidents:
* Distracted Driving
* Driving Under the Influence
* Speeding
* Dangerous Roadways
* Drowsy Driving
* Teen Drivers
* Elderly Drivers
* Aggressive Drivers
* Snow or Black Ice
* Traveling Too Fast For Conditions
* Police Chase
* Roadway Debris
* Uncontrolled Intersections
* Wrong Way Drivers
COMMON INJURIES IN T-BONE COLLISIONS. The high speed and violent nature of side-impact crashes typically result in serious injuries to people involved in the collision. Some of the common injuries we see in T-bone collisions include:
* Back & Neck Injuries: The sudden impact of an unexpected collision can result in a wide-range of back and neck injuries, from whiplash to a broken neck.
* Bulging Discs: Discs and vertebrae in the neck and back can become disfigured or damaged in the event of a T-bone crash.
* Head Injuries: An unsuspecting driver will typically not have the time or awareness to brace for a side-impact crash, which can result in physical trauma to the head from steering wheels and dashboards.
* Broken Bones: Fractures and broken bones are common in collisions where an occupant was struck directly by another vehicle, or when the collision causes major damage to the vehicle.
* Wrongful Death: In very serious instances, any of the above scenarios or injuries can lead to death.
The traveling speed of the vehicles involved in a T-bone crash, as well as the exact point of impact, can have a major impact on the severity and extent of a person’s injuries.
CONTACT US FOR A FREE CASE REVIEW AND CONSULTATION. We will review your T-bone collision case free of charge and help you better understand your legal rights and options. If we believe we can help, we’ll schedule you for a free legal consultation and explain exactly how hiring a lawyer will benefit you.
Call our office in Gig Harbor at 253.858.5434 to set up an appointment to have your case reviewed.
When a loved one dies and it's time to settle their estate, we can help. The settlement and administration of every estate is different, and it’s rarely a quick process. We will help you navigate this process — be it with the court, with questions about an existing administration, or if you simply need to talk to someone about how and where to begin. At its most basic level, our representation of you in the estate administration process involves the following steps:
1. Consultation. Meet you and address your questions and concerns.
2. Appointment. Obtain the appointment of the Personal Representative in a court process.
3. Inventory. Prepare a list of the assets of the estate.
4. Creditors. Identify and pay the creditors and debts using the assets of the estate.
5. Taxes. Prepare and file tax returns and pay the tax authorities.
6. Distributions. Distribute the remaining assets to the beneficiaries according to the terms of the Will or the state's laws of intestate succession.
7. Wrap Up. Close the estate with the court, review any planning needs, and address any final concerns.
If we can be of assistance to you, your family, friends, neighbors, or coworkers, give us a call at 253.858.5434 to set up an appointment today. We proudly represent clients throughout Washington and Idaho and are available to meet in person, by phone, or via video conference.
In personal injury cases, “pre-existing condition” can be a heavy term. A pre-existing condition is, in short, a health condition the injured party already had prior to the collision or other incident that caused their most recent injury. A pre-existing condition is also one of the most common reasons insurance companies cite when denying or undervaluing a personal injury claim.
So how do pre-existing conditions affect personal injury claims? A falsehood many insurance companies lead injured victims to believe is that most people have a completely clean bill of health before an auto collision. That’s simply not true. Almost everyone who is involved in a personal injury claim has some kind of underlying health condition.
In many instances, an insurance company will point to this underlying health condition as the origin of the injury, rather than the collision. In personal injury law, if the injury existed prior to the collision and was unaffected by it, the at-fault party is not liable for it. By denying that the injury was caused by the collision, the insurance company is able to significantly reduce (or altogether avoid) compensation for your personal injury.
Yet, there is an important distinction that must be made. As a personal injury claimant, it’s true that you are generally not eligible for compensation for injuries that existed prior to the incident. You may, however, be eligible for compensation for injuries that existed prior to — but were worsened by — the collision.
This is a complicated area of personal injury law. When a pre-existing condition is a factor in your claim, the professional testimony of a physician is often required to determine the status of your condition before and after the collision. This involves thorough research into your medical history and current state of health.
It takes an experienced lawyer to successfully navigate this kind of personal injury case. We have successfully guided many injured victims through the challenges of a pre-existing condition — and have obtained full and fair compensation on their behalf. If we decide to take your personal injury case, you can be sure that we will use the full extent of our expertise to help you receive the compensation you need for recovery after injury.
DON'T LET A PRE-EXISTING CONDITION STOP YOU FROM SEEKING RECOVERY. Having a pre-existing condition should not preclude you from obtaining the compensation you need to cover your medical expenses, lost wages, pain and suffering, and more. Although personal injury claims can be more difficult when a pre-existing condition is being contested, a skilled lawyer will not see this as a roadblock to your recovery.
There are legal doctrines that recognize that individuals with pre-existing conditions are still entitled to seek damages for injuries suffered in an auto collision — even if their condition contributed to the injuries. The most famous example of this is the “eggshell plaintiff.” This theory imagines a person whose skull is as fragile as an eggshell. If this person is injured through another party’s negligence (for example, by a drunk driver), their skull will shatter much more easily than the average person. In this way, their pre-existing condition affected the injuries they suffered in the collision. But the drunk driver is still liable for all the injuries they caused to the eggshell plaintiff through their negligent actions.
In a personal injury case, the at-fault party may be obligated to cover expenses associated with the injuries the victim suffered due to negligence. But the at-fault party has no obligation to cover injuries that previously existed and were unaffected by the collision. Insurance companies use this principle to avoid payments. If the insurer can prove that your injury pre-existed and was unaffected by the collision, they are not obligated to compensate you for the costs.
PROTECT YOUR RIGHTS. If you are filing a personal injury claim and have a pre-existing condition that may complicate your claim, there are a few important things to remember:
* Inform your lawyer of your pre-existing condition at your first meeting. Your lawyer needs to know about your health condition so they can anticipate the actions of the defendant and their insurance company. Keep good lines of communication open with your lawyer and update them on your medical progress. This will allow your lawyer to take the appropriate measures to protect your claim.
* Seek medical treatment immediately after your injury. Seeking immediate medical attention can help prove that your injuries were a result of your collision. Keep careful documentation of all doctors' appointments, test results, physicians’ notes, prescription medications, and any other information about your medical care.
* Do not give an insurance adjuster access to your medical records without speaking to your lawyer first. Part of the job of an insurance adjuster is to find reasons to lower payout amounts, thus saving the company money. If an adjuster can find any data in your medical records to indicate that your injury existed prior to the collision, it can be used to refute the connection between the collision and injury. Never allow an insurance adjuster full access to your medical history. Only provide the company with the medical records directly related to your case. Speak to your lawyer if you have any concerns about the questions an insurance adjuster is asking you.
GIVE US A CALL. If you were injured in an auto collision and the insurance company is using a pre-existing condition to deny your claim, you are not out of options. We know the obstacles to maximum compensation and how to avoid them. We’re proud of the verdicts and settlements we’ve achieved on behalf of our clients, and we will work hard to do the same for you. Give us a call at 253.858.5434 to set up an appointment for a free consultation today.
Contact our office to discuss your case with an attorney from our team. We’ll begin with a free case evaluation to explore your legal options.
When you're preparing your estate plan, it's natural to want to provide for your children, grandchildren, and other family or friends who are younger. When those potential beneficiaries are under the age of 18, however, you need to take some extra steps with your estate plan to ensure that they receive the full benefits that you intend to give.
YOUR PLAN COULD INCLUDE A TRUST. Many people are suspicious of Trusts because they think Trusts are unnecessarily expensive and complicated. While some Trusts do deserve this reputation, other Trusts can be quite simple and easy for a family member to manage.
A Trust is a legal entity that holds property for someone. The person named as Trustee manages the property you put into the Trust, but they don’t use it for themselves. Instead, they oversee management and distribution to the beneficiary.
Your gift to a minor can be put into a Trust to allow an adult to manage the property until the minor reaches a certain age or another milestone occurs. The Trustee can still spend money for the beneficiary's health, education, support, maintenance, and general welfare even if the beneficiary is still a minor. The minor will not have direct access to funds in the Trust without going through the Trustee. This prevents them from wasting assets due to inexperience or predatory practices by creditors.
UNIFORM TRANSFERS TO MINORS ACT (UTMA). Washington and Idaho law both protect minors by allowing assets gifted to minors to be held in a special custodial account until the recipient reaches the age of 21 (for gifts made during the donor's lifetime) or 25 (for gifts made after the donor's death). Since minors are not legally allowed to own property, the property they receive would ordinarily have to be under the control of their guardian or a Trustee.
The custodian of an UTMA account is bound by some of the same rules as a Trustee. They have a duty to manage the account responsibly and in the best interests of the minor. An UTMA account is much less complicated than a Trust. However, the recipient may gain access to account funds all at once with no control when they turn 21 or 25, so if that recipient lacks the maturity to manage the money, it could be subject to abuse or predatory practices of others.
To make a gift through an UTMA account, the gift is named to the custodian for the benefit of the beneficiary.
529 TUITION PLANS. Parents and grandparents also frequently make gifts to minors through a federal 529 plan. These plans provide ways for minors to accumulate funds that grow tax-free so long as those funds are used for higher education.
GIVE US A CALL. When all components of your estate plan coordinate together, you gain the best advantages for yourself as well as all members of your family. We can help you take advantage of tax benefits to minimize gift and estate tax liability. We can also help you take steps to protect your loved ones and ensure that your gifts are used for the purposes you intended. Just give us a call at 253.858.5434 to set up an appointment today.
An estate plan is the plan a person makes for the management of their finances and health care in the event they become incapacitated, and the plan for the administration of the person’s estate after they have died. In Washington and Idaho, a person typically uses an estate plan to accomplish these goals:
* control how the person’s property will be distributed upon the person’s death;
* avoid uncertainties in the administration of probate proceedings;
* avoid or minimize estate tax liability;
* arrange for the care of the person’s minor children and other dependents upon the person’s death;
* appoint others to manage the person’s financial and medical matters if the person is unable to do so; and
* choose whether life-sustaining treatment should be continued if the person is ever in a terminal or permanent unconscious condition without any reasonable probability of recovering.
Estate plans accomplish these goals using a variety of legal devices, such as Wills, Trusts, Powers of Attorney, and Health Care Directives, together with beneficiary designations and ownership interests of nonprobate assets. Every person’s unique needs and goals must be considered when deciding which devices to use for the person’s estate plan.
If you have questions about preparing an estate plan, 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.
A limited liability company, or LLC, is a business structure that combines the advantageous tax structure and administrative flexibility of a partnership with the limited liability protection offered by a corporation. LLCs are popular among small business owners. To create a LLC, you'll need to file a Certificate of Formation with the state and adhere to other procedures and eligibility requirements.
NAMING YOUR LLC. Washington has specific naming rules for your LLC as follows:
* The name must include LLC, L.L.C., Limited Liability Company, or Limited Liability Co.
* The name must be different than those of other businesses registered with the state.
* The name must not cause confusion with the name of another business.
* The name must not include restricted words such as bank, banking, banker, trust, partnership, cooperative, corporation, corp., incorporated, LP, LLP, inc., ltd., or combinations of industrial and loan and combinations of any of the following words: savings, loan, association, home, society, and building.
Once you choose a name that meets these requirements, you can search the Washington Secretary of State business name database to find out whether it's available. If the name is not taken, you can reserve it for 180 days for a fee of $30. You should also see whether a domain name is available for your preferred name and purchase it to create a website for your business.
DESIGNATING A REGISTERED AGENT. The registered agent is an individual or business who is responsible for accepting service of process and other legal paperwork on behalf of your LLC as well as submit annual state filings. The registered agent must be a Washington resident or an LLC or corporation that is registered to do business in the state, both with a physical address in the state. You or another LLC member can serve as a registered agent. You can also opt to use a registered agent service if you live out of state, if you want the convenience of a service that's open during business hours, and if you want guidance about legal professionals and accountants in the state.
FILING A CERTIFICATE OF FORMATION. You can access a form of the Certificate of Formation from the Washington Secretary of State website. This form is required to create your Washington LLC. It asks you to provide the name and registered address of your LLC, its date of formation, whether its existence is perpetual or limited, whether the business will be managed by the members or by professional managers appointed by the members, and names and addresses of the members responsible for creating and signing the certificate. The paperwork can be submitted by mail or online and will be processed in two to three business days if you do so online. The online filing fee is $230 and the filing fee for mailed documents is $180. The form is payable by a debit or credit card online and can also be paid by check if you file through the mail.
DRAFTING AN OPERATING AGREEMENT. An operating agreement is not required by Washington law, but can help you organize the affairs of your LLC. This document does not need to be filed with the Secretary of State but should be saved as a reference of the business's operating rules and regulations.
CONSIDERING FINANCES. An EIN, or employer identification number, is used to identify your business with the IRS and is used to open a business bank account, hire employees, and file state and federal taxes. You can request a free EIN from the IRS. Even if your LLC only has one member, registering for an EIN helps you establish a separate credit history for your business and distinguish between personal and business finances.
To preserve the limited liability protection offered by your Washington LLC, keeping business and personal finances and expenses separate is essential. Opening a business bank account and line of credit are two important steps in this process. This will also make it easier to keep your business books and file taxes. Most Washington businesses must pay a Business and Occupation Tax. If your business has employees, you are subject to Unemployment Insurance Tax.
If you have questions about forming an LLC, give us a call at 253.858.5434 to set up an appointment today.
The state of marriage has changed tremendously since the Brady Bunch first aired in 1969, giving rise to nearly as many blended families as traditional families. For those in this situation, it is important to incorporate stepchildren into your estate plan.
Many stepparents love their stepchildren as their own; it may come as a surprise that emotional bond is not protected by law. Laws of inheritance apply to biological children and formally adopted children. If you do not have the legal relationship, you need to make clear you wish your estate to benefit your stepchildren.
Frequently, an estate plan leaves all remaining property to children equally. This type of language will only apply to biological and adopted children. Some people believe their family will understand the intent and share. It is a nice thought, but it’s definitely not a foregone conclusion.
Even if you don’t have biological children, your estate planning lawyer will advise that your stepchildren still won’t have rights to your estate. Instead, if you die without a spouse and without a Will, your heirs will be your "next of kin," i.e., blood relatives, meaning your property could pass to distant relations who you don’t even see, rather than to the people you helped raise.
Be explicit and specific with your estate plan. Should you wish for your stepchildren to receive an inheritance, you must clearly document your wishes in your estate plan. Work with your lawyer to create a detailed Will or Trust that specifically includes your stepchildren in your class of beneficiaries. You can also name them as beneficiaries on life insurance or IRAs. This can be a nice option if you do not want your biological children feeling slighted, as they will not see who the other named beneficiaries are or how much they were provided.
Finally, please keep this in mind when your biological children are someone else’s stepchildren: should you get remarried and then pass away, leaving everything to your spouse, they could pass all to their biological children, effectively cutting off your own biological children. For this reason, Trusts are frequently used in blended families to provide for a surviving spouse, but also ensure your biological children are not deprived of assets.
Blended families are common and ensuring your wishes are clear and honored takes a little effort with a skilled lawyer. We would be honored to help you and your family protect who and what matters most. Please reach out to us at 253.858.5434 to set up an appointment today.
Parents love their children and want their children to inherit. However, many parents are concerned about their children's spouses. Fifty percent of all marriages end in divorce. What happens if a parent dies, leaves everything to his daughter, who commingles the funds with her husband and subsequently his daughter divorces the son-in-law? Through equitable distribution, the son-in-law may wind up with half of the parent's estate. In many instances, the son- or daughter-in-law simply exercises considerable influence over the natural child with the result that the inheritance is dissipated foolishly.
One solution is to encourage children to sign prenuptial agreements, but many children are very reluctant to bring up such a document with their soon-to-be new spouse. An alternative is to establish Trusts so that the assets are not commingled and made subject to equitable distribution. An independent Trustee should be selected and withdrawal rights given to the children can be limited.
One way to protect a child’s inheritance from a less-than-ideal spouse or ex spouse is through establishment of a Dynasty Trust. A Dynasty Trust should always be considered when the son- or daughter-in-law:
* Is a spendthrift and/or poor money manager.
* Has difficulty holding a job.
* Is a gambler.
* Is battling addiction issues.
* Is emotionally and/or physically abusive to child and/or grandchildren.
* Has children from a previous marriage.
* Is unfaithful.
* Is not close to and/or not on good terms with children from the child’s previous marriage.
* Is just generally untrustworthy.
Without a Dynasty Trust, a number of circumstances can put a child’s inheritance at risk.
* The inheritance can be squandered by the son- or daughter-in-law.
* If the inheritance is commingled with the assets of a son- or daughter-in-law during marriage, in a divorce it will be subject to equitable distribution.
* Grandchildren from a child’s first marriage could be disinherited by a son- or daughter-in-law from a second marriage.
* Grandchildren could effectively be disinherited if a son- or daughter-in-law receives part of the inheritance and squanders it through misuse or poor money management.
A Dynasty Trust is designed to keep money in the family, protecting the inheritance of the client’s children and their descendants. Dynasty Trusts offer a number of important benefits:
* Trust assets can be used only for blood descendants – the client’s children, grandchildren, great-grandchildren, etc. Specifically, assets in the Trust can be used only for the client’s children’s or descendants' health, education, maintenance, or support.
* Trust assets are never available to a son- or daughter-in-law, either during the marriage or in a divorce, through equitable distribution or alimony.
* Trust assets are protected from children’s creditors and those of sons- or daughters-in-law.
* The client’s child may be given control over the Trust.
* The child, acting as Trustee, can distribute principal to or for the benefit of himself or herself or to his or her descendants.
* The Trust terminates at the child’s death and the remaining principal can be paid only to the child’s descendants, or the assets can continue to be held in Trust for the benefit of the client's grandchildren, great-grandchildren, etc.
* The Trust is revocable during the client’s lifetime, but only by the client.
The client’s child can serve as initial Trustee of the Dynasty Trust or share this responsibility with an independent Co-Trustee. At any time, the child can resign from the Trustee role. He or she will be removed from the role automatically in the event of a divorce or lawsuit and reinstated only when the divorce is complete, the divorce action is terminated, or the lawsuit is resolved.
An independent successor Trustee can be appointed by Will or Trust or can be nominated by the child. That successor Trustee may be another child in the family or a financial institution or other professional fiduciary.
If you have questions about protecting your estate for your children and grandchildren, 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.