In thinking through your estate plan, a document you should consider is a Durable Power of Attorney, which gives someone else the power to sign documents and make decisions on your behalf.

In thinking through your estate plan, a document you should consider is a Durable Power of Attorney (DPOA). This is a document that gives someone else the power to legally sign documents and make decisions on your behalf. Without adequate safeguards, this can be a dangerous document because that person could possibly use it against your better interest.

The primary purpose of a DPOA in estate planning is to name someone else (usually your spouse or friend or family member you trust) as your attorney-in-fact (your agent), to become effective if and only if you ever become mentally incapacitated in the future. If you never lost capacity, this document could never be used. If you do become incapacitated, your DPOA could take care of your personal and financial affairs without the necessity of petitioning the Court to set up a guardianship. You can have a DPOA for financial matters and separate power of attorney for health care decisions. In Washington, you can also have a power of attorney to appoint someone to make health care decisions for your minor children in the event you and the other parent become incapacitated or are otherwise unavailable.

Another consideration is to have a DPOA for an adult child (over age 18) who is not married. If they do not have a power of attorney, and become incapacitated (as a result of an illness or injury), then it may be necessary to go thought the expense of a guardianship to legally care for them. They are no longer minors that you have the legal authority over. This becomes relevant as they graduate from high school or enter life on their own.

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.

A Will is a document that provides instructions on how to distribute your assets after death. While writing a Will helps outline your plan, it will not be binding unless it is signed correctly.

A Will is an important estate planning document that provides instructions on how to distribute your assets after death. While writing and compiling this document helps outline your estate plans, it will not be legally binding unless it is signed -- and signed correctly.

Below are three simple steps to keep in mind during the final signing of your Will.

1. The Will Must Be in Writing. The individual writing the Will, known as the testator, can only create a valid Will if they are over 18 and are of “sound mind.” The Will must in writing – either typed or entirely handwritten. Handwritten Wills, known as "holographic Wills," are not recommended, however. This is largely because holographic Wills are difficult to amend and can pose many problems when reaching probate court. Often these issues concern the authenticity of the Will – an accusation that can spark a Will contest or a lengthy probate process.

2. The Testator Must Sign. Next, in the presence of two competent and disinterested witnesses, the testator must sign the Will. The testator must also note the date of these signings and include it with their final signature.

3. The Signatures of Two Witnesses. Because a Will is a legal document, it must go through a validation process. At the very least this process involves two witnesses, but it can also include notarization from a notary public. In the case of witness signing, Washington has three requirements: these witnesses must be at least 18 years of age, of sound mind, and must affirmatively witness the signing of the Will.

These witness signatures validate the will – proving the document was indeed signed by the testator. Therefore, the witness signatures appear as the final signatures on the document. Like the testator, witnesses must also include their date of signing on the document to preserve the information for posterity.

Other Considerations. When making a Will, it is a good idea to keep the document up-to-date. It is highly recommended that you use the services of a lawyer to help with this process. By working with a lawyer, you reduce the likelihood of any improper organization, missing assets, or missed steps, in your Will. Having your estate documents compiled correctly will then reduce the likelihood for a messy probate process at a later point in time.

Having an experienced lawyer draft your Will saves time and effort for you and your loved ones. With nearly three decades of experience, we can organize your assets to ensure your affairs are in order, giving you peace of mind.

Call 253.858.5434 or email us at steve@aitalaw.com to schedule an appointment and get the estate planning help that is right for you.

Pedestrians usually have the right-of-way. If you or a loved one was hit and injured by a car and the driver was at fault, you’re likely entitled to a settlement for your damages.

In Washington, pedestrians usually have the right-of-way. However, if a driver fails to respect this, a pedestrian can get seriously injured. If you or a loved one was hit and injured by a car and the driver was at fault, you’re likely entitled to a settlement for your damages.

WHAT HAPPENS WHEN A CAR HITS A PEDESTRIAN? If a car driver hits a pedestrian on a road, in a crosswalk, parking lot, or other location, chances are good the driver violated a traffic law or was not exercising reasonable care while driving. Although pedestrians can be found to be at fault in some cases, it’s more common that the driver should have yielded. And pedestrians are usually left with painful injuries or even trauma related to the incident.

If you were a pedestrian hit by a car, there’s a good chance you can and should hold the driver responsible — both legally and financially. Your settlement could include money for medical costs, lost wages, pain and suffering, and more. And pursuing that settlement doesn’t just make sure the at-fault driver pays; it helps offset what could be years of impact on your life.

WHAT CAN YOU EXPECT? We can help you pursue financial recovery after being hit by a car. There are two ways we can do this:

(1) By filing an insurance claim with the driver’s auto insurance company and negotiating a settlement based on your damages that you have a legal right to receive.

(2) By filing a lawsuit against the car driver in civil court.

PROVING THE OTHER DRIVER AT FAULT. To do either of the above, you’ll need to show the driver was at fault for the collision and therefore responsible for your resulting injuries. As a motorist, they have a duty to act in a way that keeps pedestrians like you safe from harm while on the road. We will use any evidence from the collision to prove the driver’s negligence, including:

* Pictures of the scene (including damage and injuries sustained)

* The police report

* Medical records from the treatment you received for injuries

* Statements from any witnesses who were at the scene

* Any bills or other paperwork demonstrating your costs and damages related to the incident

WHAT HAPPENS NEXT? If the driver is determined to be at fault for the collision, they (or their insurance company) will be liable for your costs in the settlement. Those can include:

* Medical bills you received for doctor’s visits and treatment of your injuries

* Time missed from work due to your treatment and injuries

* Any property damage that occurred as a result of the collision

* Possible pain and suffering-related costs, which can be common in pedestrian accidents due to serious injuries

NEVER TAKE THE FIRST OFFER. Pedestrians collision are unfortunately often serious since the victim is hit with a large, heavy vehicle with little to protect the victim. As a result, you may be able to receive a substantial recovery from your injuries. Plus, in many cases where a car hits a pedestrian, the driver is clearly found to be at fault and the pedestrian is usually able to recover for all expenses. However, you should expect the insurance company to offer a low-ball settlement amount at first. Insurance companies will do whatever they can to limit payout, so never take the first offer. Call us to be on your side and negotiate a fair and just settlement.

Note: Even if the driver is uninsured, they still may have to pay for your damages out-of-pocket—so don’t give up if the motorist doesn’t have insurance.

WILL YOU HAVE TO TAKE THE DRIVER TO COURT? In most cases, probably not. Many times, these types of claims can be settled without the need to go to court. We will file an insurance claim with the driver’s insurance policy and work to negotiate a fair settlement for you from there. In rarer cases, a pedestrian case may go to court. In that case, it really helps to have a lawyer on your side to fight for the full amount you need and deserve to move on.

CONTACT US FOR A FREE INITIAL CONSULTATION. Pedestrian collisions can be scary, painful, and overwhelming. If you or a loved one were hit by a car as a pedestrian, you’re entitled to the settlement you need to recover. We can help. Give us a call at 253.858.5434 today to set up a free consultation.

A Grantor Retained Annuity Trust (GRAT) is an estate planning tool that can potentially allow a person to transfer wealth to the next generation with minimal or no gift tax ramifications.

There are a number of strategies that can be used in estate planning to reduce tax consequences. A Grantor Retained Annuity Trust (GRAT) is a tool that can potentially allow a person to transfer wealth to the next generation with minimal or no gift tax ramifications. When interest rates are low, it's an opportune time to consider using a GRAT. If it is structured correctly, a substantial amount of assets can be passed down to beneficiaries without utilizing your lifetime gift tax exemption.

A GRAT is a type of irrevocable living trust that can be beneficial for those who face significant estate tax liability. It temporarily holds assets that will likely rise in value, allowing the Grantor (creator) to make an initial contribution to the Trust while retaining the right to receive an annual annuity payment during the term of the GRAT. The rate of the generated return is specified by IRS regulations.

A GRAT freezes the value of an estate asset by transferring its future appreciation to the beneficiary. For instance, if you had $20 million in assets that you expected to grow to $30 million within the next two years, the difference would be transferred to the Trust beneficiaries without them incurring tax liability. Since a GRAT doesn’t represent a completed gift, but rather provides for future appreciation, there’s no gift tax due. However, the transfer must still be reported on a gift tax return.

The term of a GRAT is typically two to five years. Once the Trust term expires, the beneficiary receives the appreciated value of the assets of the Trust, tax-free. If the Grantor dies during the term of the Trust, the assets go back into the taxable estate and the beneficiary doesn’t receive anything.

The instrument can be particularly useful in estate planning for high net-worth individuals, people who own shares in startup companies, and anyone else with stocks or assets they expect to rise in value above the IRS assumed rate of return. Other than the risk that the GRAT could grow at a rate lower than the IRS rate, there’s virtually no downside to creating a GRAT.

Trusts can be complex and it’s vital to have the guidance of an experienced lawyer who can advise you concerning the best strategies for you and your family. We have more than 26 years of experience helping clients throughout Washington create comprehensive estate plans. Call 253.858.5434 or contact us online to schedule a consultation at our Gig Harbor office.

The estate planning process is more complicated if you own real estate in different states. Without good planning, your heirs may face delays and unexpected tax consequences.

The estate planning process is more complicated if you own real estate in different states. Without good planning, your heirs may face delays and unexpected tax consequences.

WHAT IS ESTATE PLANNING? The purpose of estate planning is to prepare for the day when you can't handle your affairs anymore. Estate planning ensures that a person's wishes are carried out if they die or become incapacitated. Also, estate planning is important because it can minimize taxes, simplify the process of transferring property to your heirs, help you plan for long-term care expenses, and relieve stress for family members who suddenly have to take over during a crisis.

A basic estate plan includes a Will, a Durable Power of Attorney, a Health Care Power of Attorney, and a Directive to Physicians (commonly called a "Living Will"). An estate plan can also include one or more Trusts and/or a Community Property Survivorship Agreement.

If you own property in multiple states, it's usually best to have a lawyer prepare your documents. An experience estate planning lawyer is also able to give you advice about the best approach for your situation.

ESTATE PLANNING AND MULTIPLE PROPERTIES. Your state's probate court only has authority over property located in your home state. For example, if you're a Washington resident and own a home there, the Washington Superior Court can oversee that property's transfer. But it can't do anything about your vacation place in Arizona or your rental property in Oregon. Those properties will have to go through an ancillary probate process in the states where they're located. Your Personal Representative may have to travel there, and you'll probably need a lawyer in each state.

Probate in multiple states can be complicated, time-consuming, and expensive. Two ways to avoid it are:

* Ensure the deed says the property is owned jointly with your spouse, with a right of survivorship. This means the property will pass directly to your spouse, without probate and without a specific gift in your Will.

* Set up a Revocable Living Trust and put your real estate in the Trust. Your property will then pass according to the instructions in the Trust, without going through probate.

If you only have personal property, such as furniture in another state, your Personal Representative can usually move the property to your home state and probate the entire estate there.

MULTIPLE DOCUMENTS FOR MULTIPLE PROPERTIES. Technically, you could have a separate Will for each of your out-of-state properties. You could have an Arizona Will that only addressed your vacation house there and an Oregon Will for the rental property. The advantage of this is that you'd have a Will tailored to each state's laws about community property and appointment of a Personal Representative. The disadvantage is that multiple Wills can be confusing or conflicting, and you'd still have to go through the probate process in each state where you own property. A Trust is usually a better way to handle out-of-state property.

For Powers of Attorney and Directives to Physicians, it can be a good idea to have a set of documents for each state where you spend a significant amount of time. This is because the documents are written according to state law, and the language and formatting can vary from one state to another. Unfamiliar out-of-state documents can confuse healthcare workers and people you do business with, causing stress and delays for everyone.

If you own out-of-state property, a good estate plan is critical. The plans you put in place today can help things go more smoothly for your family in the future. If you have estate planning questions, 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.

Here are some key aspects to keep in mind when selling your business.

When selling your business, there are some key aspects to keep in mind. You'll want to get an experienced lawyer involved to make sure that all of your bases are covered and you don't end up in a bad deal. First, you'll want to plan ahead so you're completely prepared for selling. This may mean that you discuss and plan the sale of your company one or two years before you plan to take action. Planning ahead is ideal because you'll likely need to adjust some aspects of your company before it's ready to sell. You'll also want to make sure that your documentation is clear and well-kept so that it can be easily handed over to a buyer.

As you plan to sell your business, ask yourself and your partners these basic questions:

* Why do we want to sell?

* Why should we sell?

* Why should anyone want to buy our company?

* When is the right time for the sale?

Once you find a buyer for your business, they'll need a minimum of three years of your past financial documentation. This includes your company's tax returns and an up-to-date balance sheet. You'll also need to provide the last year's worth of financial statements, each month included. This will show the buyer any fluctuations throughout the year due to seasons or other factors.

All company assets that are for sale should be clearly listed and their supportable or current book values should be included. You might also need to include details like:

* Business licenses and permits.

* Vendor contracts.

* Leases.

* Lists of suppliers.

* Marketing materials.

* Valuation.

It can be difficult to properly value your own company as you have a personal investment in it. Getting a professional valuation will help you clearly see what your business is worth. This will help you find a suitable asking price so you can be in a good range to find buyers. A professional valuation will also make it clear if there are parts of the business that need improvement before selling.

Valuation for a business takes the following into consideration:

* Asset values.

* Earnings.

* Feasibility.

* Revenues.

* Discretionary cash flow.

When planning to sell your business, you'll also want to develop a marketing strategy. You'll need a marketing package and action plan. Decide whether you're OK with negotiating with buyers. If you determine that you won't do well with negotiating because of an emotional attachment to the company, you might want to consider using a broker or agent to handle the sale.

Make sure you're ready to show your business to potential buyers at any time. Think of it like trying to sell your house. You'll have showings and need to be ready to make a sale anytime someone is interested.

An advisory team is also a great asset to a business sale. This will include experts like your lawyer, broker or agent, banker, and accountant.

Before offering all of your business information up to any potential buyer, you'll want to first interview the buyer and make sure they are legitimately interested in purchasing your company. Even if they are actually interested, they may not have the necessary skills to run the company, so you'll want to get some of their information and background to determine if they're capable. You can form an offer agreement with the buyer. You'll agree to share your business's financial information in exchange for the following:

* Buyer resume.

* Nondisclosure agreement (or confidentiality agreement).

* Personal financial statement.

Taking such care in the case of a business sale can help prevent your competitors from getting ahold of your business's financial information. You don't want that kind of information easily accessible to anyone.

Consider whether you'll want to remain a part of the company after the purchase. Will you be available to help the buyer and train them to handle the ins and outs of the business? Think about and plan how the transition period will play out.

If you need help with selling a business, give us a call at 253.858.5434 to see how we can help. We represent clients throughout Washington and Idaho and are available to meet in person, by phone, or via video conference.

Whether you have inherited some of your wealth or have built it all yourself, you likely want to share this wealth with your children, grandchildren, and generations beyond.

Whether you have inherited some of your wealth or have built it all yourself, you likely want to share this wealth with your children, grandchildren, and generations beyond.

It’s a common axiom in the estate planning world that the first generation builds the wealth, the second generation spends the wealth, and the third generation rarely sees any of the wealth. In fact, studies estimate that 70% of family wealth is lost by the end of the second generation and 90% by the end of the third. To properly provide for many future generations, it’s essential to have carefully drafted estate planning documents in place, and to update your family about those plans.

HOW AN ESTATE PLAN PROTECTS FAMILY WEALTH. An estate plan puts your intentions into writing. With the proper documentation, you can secure wealth and property for generations to come.

A Trust can be a valuable tool when planning for the long term. Not only does a properly funded Trust avoid the costly, time-consuming, and public probate process, it also provides instructions for exactly what should happen to the money and property owned by the Trust. We can help you decide which type of Trust best fits your wealth transfer goals and can instruct you on how to properly fund the Trust. The Trust instructions can lay out who will receive your money and property, how much these people will receive, and when they will receive it.

Your Trust can provide your Trustee with a lot of investment and distribution discretion. Discretionary Trusts allow the Trustee to use their discretion to determine when and how much money and property to give beneficiaries. Because beneficiaries are not guaranteed a specific amount of money or a particular piece of property, the funds are better protected from any of the beneficiaries’ future creditors or vindictive ex spouses and, consequently, preserved for subsequent beneficiaries. A Trust can also foster educational opportunities, protect special needs beneficiaries, and minimize estate taxes at each generation. By choosing a Trustee you believe will carry out your planning goals, you can ensure that your beneficiaries will be cared for without jeopardizing the wealth you have worked hard to build.

If you are concerned about your wealth lasting for future generations, lifetime giving can also be an effective solution. Although it may sound counterintuitive to give money to an individual who may not be financially savvy, a lifetime gift can allow you to counsel and guide the recipient on how to best use the money. In many cases, beneficiaries squander their inheritance because they do not know how to properly manage their money. A lifetime gift could be the means for teaching valuable lessons that promote long-lasting, multigenerational legacy planning.

COMMUNICATE WITH FUTURE GENERATIONS. In addition to a Trust, you can write an instruction letter to be shared with your loved ones. In your letter, you can carefully explain your goals and wishes and express your intentions in your own words without worrying about precise legal language. The information can alleviate the possibility of family fighting, explain why the money and property are being divided and distributed in a specific manner, describe your desire to benefit multiple generations with your estate plan, and provide a final lesson on how to successfully preserve the inheritance.

You should consider communicating the following information to your family to ensure that your loved ones are prepared to carry out your wishes during a difficult time:

* A net worth statement, or, at minimum, a broad overview of your wealth

* Estate planning documents that you have created and the purpose each document serves. Some estate planning documents that could help you meet your wealth transfer goals include:

-- Revocable Living Trust: avoids guardianship or conservatorship of your property during your life and avoids probate at death; keeps your final financial wishes private; minimizes delays, costs, and bureaucracy.

-- Will: a catch-all for money and property not transferred into your Revocable Living Trust or by beneficiary designation before death, or the primary means to transfer money and property in your sole name if you are not using a Revocable Living Trust.

-- Irrevocable Life Insurance Trust (ILIT): removes life insurance from your taxable estate; provides immediate access to cash for loved ones’ needs, administration costs, and taxes.

-- Other advanced estate planning tools: protect money and property from creditors, predators, outside influences, and ex spouses; enable charitable giving; minimize taxes; create Dynasty Trusts

-- The person you have chosen to make decisions if you die, are incapacitated, or are otherwise unable to make decisions while living. This could include agents named in your Durable Power of Attorney and Health Care Power of Attorney, the successor Trustee of your Revocable Living Trust and any other Trusts you have created, and the Personal representative named in your Will.

-- Your goals and intentions for inheritances: what the money is and is not to be used for (for example, education, charity, business opportunities, or retirement instead of vacations and cars), and who will be the Trustee of any lifetime discretionary Trusts created for your family members and why you have selected them

-- Location of important documents: this should include how to access your digital assets such as social media, online bank accounts, and crypto assets

-- Your key advisors and their contact information: lawyer, financial advisor, accountant, insurance agent, etc.

HOW TO GET STARTED PROTECTING YOUR FAMILY WEALTH. Providing for multiple generations through your financial and estate plans is a significant legacy to leave your family. Ensuring that it is done properly requires careful planning with experienced professionals that understand legal nuances. An experienced lawyer is well-positioned to help you discover your wealth priorities, goals, and objectives and then communicate that information to your family. This will prepare your family to receive your property and not be left to figure out your intentions on their own, which could, as statistics have shown, risk them losing it all.

Helping families is our passion. Schedule a consultation with us today by calling 253.858.5434 so we can discuss your wishes for the future and help you craft a plan that will benefit many generations to come.

When someone is hurt due to the actions (or inaction) of another, they have the right to compensation for the harm done to them.

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 is giving the gift of guidance, intention, and values to family and friends who survive you.

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.

What is a "Disclaimer Trust"?

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.

Hiring a lawyer can help you save time and avoid problems when forming your limited liability company (LLC).

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.