Revocable Living Trusts are cool. They are a faster, cheaper, private, and more flexible way to administer a deceased person's estate.

Revocable Living Trusts are cool. They are a faster and cheaper way to administer a deceased person's estate (as opposed to a Will and going through the probate process. They are private (whereas Wills get filed at the courthouse and thus become public documents). And they can provide more flexibility than just a basic Will. If you have questions about Revocable Living Trusts or other estate planning tools and techniques, give us a call at 253.858.5434 to make an appointment today. We represent clients throughout Washington and Idaho and are available to meet in person, by phone, or via video conference.

Many people don’t realize that a personal injury lawsuit for an "intentional tort" helps victims recover financially from whatever harm a criminal act caused.

After you or a loved one is the victim of a crime, your stress level is high. A rush of emotions probably flood your mind each day, and you may feel as though you deserve some degree of restitution. Criminal charges are likely to be brought, but what about compensating you for your losses? Medical bills, time off from work, property damage, pain and suffering, etc. Many people don’t realize that a personal injury lawsuit helps victims recover financially from whatever harm a criminal act caused. This personal injury claim is called an “intentional tort,” and the right lawyer can help you get the compensation you deserve.

WHAT IS AN INTENTIONAL TORT? “Intentional tort” is a phrase typically used by legal professionals. Most people without any legal training have never heard the term, though it’s a very a simple definition. An intentional tort is any deliberate act causing harm to a person or property.

When a person commits an intentional tort, their insurance won’t cover the damages that the victim demands. For example, if a person deliberately punches their guest in the face, homeowner’s insurance won’t cover the guest’s medical bills. The guilty party (or “tortfeasor”) will have to pay for the injuries out of pocket if ordered to do so via a lawsuit.

EXAMPLES OF INTENTIONAL TORS. It’s fair to say that most crimes can also be considered an intentional tort. Below are some of the most common intentional torts that result in a personal injury cases:

* Assault

* Battery

* Fraud/deceit

* Trespass

* Conversion/theft

* Slander/libel/defamation

* Invasion of privacy

* Intentional infliction of emotional distress

* Arson

* Property damage

* Sexual abuse/sexual assault

* Wrongful death/manslaughter/homicide

Though the above are easily identified as crimes, some states also have a “catch-all” provision. This means that as long as a deliberate act caused harm to you or your property, you can sue to recover the money you lost due to the incident. If you’re not sure as to whether or not you’re eligible for a claim from an intentional tort, you should consult with a lawyer.

DOES THE PERSON HAVE TO BE FOUND GUILTY OF A CRIME FOR ME TO RECOVER DAMAGES? Many people worry that if the defendant was found not guilty in a criminal trial that a civil lawsuit isn’t possible. That isn’t true, and though a guilty verdict helps your case, you can still recover damages without one. The key distinction with intentional tort cases lies with the burden of proof. In a criminal case, the defendant must be guilty “beyond a reasonable doubt.” This standard is particularly high and is one of the key reasons why many cases have hung juries. Civil cases, however, only require a “preponderance of evidence.” This is a lesser standard, though the right evidence and lawyer are needed to ensure a plaintiff’s ability to receive compensation.

This difference in the burden of proof is precisely how O.J. Simpson received two different verdicts. There wasn’t enough evidence to convict him in criminal court, but the civil trial awarded the victims’ families damages for the same alleged incident.

HOW ARE INTENTIONAL TORTS DIFFERENT THAN NEGLIGENCE CASES? In many ways, an intentional tort lawsuit is the same as a negligence claim. The primary difference is that an intentional tort occurs when a person intended to harm the plaintiff. Negligence claims are due to a person’s careless or reckless acts. Some personal injury claims may start out as an intentional tort case, but the judge or jury will decide if the defendant’s actions were negligent instead of deliberate. Either way, if the ruling is in favor of the plaintiff, damages will be awarded.

Another possible distinction between intentional tort and negligence claims is the defendant is more likely to be penalized via punitive damages in intentional tort cases. (Punitive damages are allowed in Idaho but not in Washington.) Punitive damages are different from other damages because punitive damages aren’t to compensate the plaintiff for any bills or other losses. Instead, punitive damages are designed to inflict a financial penalty on the defendant. Punitive damages are also intended to prevent others from committing the same wrongdoing.

Negligence cases may also result in punitive damages, but these damages are much more likely in intentional tort cases. The U.S. Bureau of Justice Statistics reported that 30% of intentional tort lawsuits received punitive damages versus 1% of automobile collisions, premises liability claims, and medical malpractice cases.

INTENTIONAL TORT LIABILITY. With intentional torts, there are different types of liability. As a result, each case may be presented a little differently and the liable parties may vary. The most common forms of liability include:

* Liability of the tortfeasor. This liability appears in the majority of intentional tort lawsuits. Here, the injured party sues the person who committed the harmful act. As explained above, your lawyer will try to demonstrate that the defendant intended to cause you harm. If intent is lacking, then it’s likely that your case will either be dismissed or the defendant will be deemed negligent.

* Transferred intent. These cases are very similar to general tortfeasor liability claims. The distinction, however, is that the defendant didn’t mean to cause harm to you but was still committing a harmful act. In other words, the act was meant for another victim. For example, if the defendant tried to shoot someone else but the bullet hit you instead, their intent “transfers” to you. Thus, you could sue the defendant for an intentional tort and recover the damages connected to your injury, despite the fact that you weren’t the intended target.

* Vicarious liability. Vicarious liability is most common in employment law cases, as this form of liability allows you to sue the employer of whomever caused you harm. With intentional tort cases, however, the employer may only be sued if the tortfeasor’s action occurred within the scope of employment. If, for example, a nurse sexually assaulted a patient while at a hospital, the hospital could be held liable for the nurse’s actions. If the nurse committed sexual assault at her home with a non-patient, then the hospital can’t be sued.

Another form of vicarious liability pertains to parents. In some states, a parent could be held liable if their child commits an intentional tort. The laws vary by state in terms of the specific crime and the age of the child, and you would need to consult a lawyer to see if you could recover damages from the parents.

* Strict liability. In most situations, strict liability doesn’t pertain to intentional torts. Strict liability typically arises when a person knowingly performs a dangerous act that harms another. Failure to properly handle hazardous waste or keeping a dangerous animal as a pet are frequently cited as examples of strict liability. Strict liability is on this list, however, because some victims may confuse a strict liability case with an intentional tort. For instance, if a manufacturer knowingly sells someone a dangerous product, this may seem to be an example of fraud. Instead, many states will consider the act to be strict liability instead of an intentional tort.

It’s not important that you try to properly label your potential lawsuit, however. If you were injured by someone else’s deliberate actions, consult with a lawyer. The right lawyer will be able to explain your rights and help you pursue the most damages possible. If we can be of service to you, your family, friends, neighbors, or coworkers, give us a call at 253.858.5434 to set up an appointment for a free initial consultation today.

Many people use a Revocable Living Trust as part of their estate plans. There are several advantages to using a RLT over simply relying on a Will or joint ownership of assets.

Many people use a Revocable Living Trust as part of their estate plans. There are several advantages to using a RLT over simply relying on a Will or joint ownership of assets, such as increased flexibility, avoiding the probate process, saving your heirs time and expense, and keeping your estate matters private and out of the public eye. One important thing to remember, however, is that you are not finished with the process just by signing a Trust Agreement; the Trust will need to be funded.

Funding your Trust is the process of transferring your assets from you to your trust. To do this, you physically change the titles of your assets from your individual name to the name of your Trust. If you are married, you and your spouse might change the titles of your jointly owned assets to your Trust. You may not be able to transfer all of your assets to your Trust, however. For example, retirement plans such as IRAs cannot be owned by your Trust while you are alive. However, you can change the beneficiary designation for your IRA to your Trust as primary or contingent beneficiary to receive retirement benefits after your death.

If you have signed your Trust Agreement but have not changed titles and beneficiary designations, you are unlikely to avoid probate. Your Trustee can only immediately control the assets you have put into the Trust. You may have a great Trust instrument, but until you fund it, it does not control anything. If your goal in having an RLT is to avoid probate at death and court involvement at incapacity, then you must fund it now, while you are able to do so.

You may transfer some assets and your lawyer may handle the transfer of others. A lawyer will likely need to be involved in transferring real estate and completing more complex beneficiary designations, but then provide you with instructions for transferring your other assets, such as bank accounts. Ideally, your lawyer will review each asset with you and determine what steps need to be taken and who will be responsible for each step. If you have a good understanding of the process, you may decide to handle many of your assets yourself. However, saving on legal fees should not stop you from involving your lawyer as needed to ensure that assets are properly transferred and beneficiary designations are properly completed.

If you have questions about Revocable Living Trusts or any other estate planning tools or techniques, give us a call at 253.858.5434 to set up an appointment today.

If you're considering transferring wealth to grandchildren, you may elect to give money outright or pay tuition or medical expenses on their behalf. However, you may also choose to establish a Trust.

For those who are considering transferring wealth to grandchildren, some may elect to give money outright or pay tuition or medical expenses directly on their behalf. However, others may choose the option of establishing a Trust. In certain instances, a Trust may provide you with more alternatives for determining how and when your grandchildren receive funds.

Establishing and funding a Trust for your grandchildren may enable you to:

* Set guidelines on how you’d like the money to be used.

* Distribute funds at key milestones — like graduating from college, getting married, or turning 35 — over the grandchild’s lifetime, rather than all at once.

* Help protect their inheritance from potential depletion due to lack of financial literacy or other financial challenges.

* Help your grandchild meet specific goals, such as buying a home or starting a business.

ESTABLISHING A TRUST. Trusts require careful thinking about what you’d like them to accomplish. Trusts established during your lifetime primarily to transfer funds to family members are typically created as irrevocable Trusts — once you’ve established them, you typically can’t change your mind and reclaim your money.

Since Trusts for grandchildren are legal structures, you’ll work with a lawyer to establish them. However, you may also want to discuss wealth planning and investment options with your financial planner or wealth manager.

Selecting a Trustee also requires thoughtful analysis. The Trustee is the individual or entity that is typically responsible for approving distributions from the Trust. In addition, Trusts also require recordkeeping and reporting, and the Trustee is responsible for those tasks as well. Although you may want to name a family member or friend as Trustee, it can sometimes be beneficial to work with an objective third party.

Discuss with your lawyer whether to appoint an individual Trustee, a corporate Trustee, or both as part of the estate planning process. Factors such as nature and size of assets and family dynamics are all considerations.

CHOOSE THE RIGHT TRUST OPTION. If you decide that a Trust is the right choice for transferring assets to your grandchild, there are many considerations and ways to structure the terms, with advantages and disadvantages depending on the size of your family. The following are only a couple of limited examples. You should consult with your lawyer to discuss the most appropriate terms to accomplish your unique goals.

1. A FAMILY "POT TRUST" FOR ALL YOUR DESCENDANTS. With a "Pot Trust," a single Trust is established for all of the Trust beneficiaries. The terms of the Trust then may give discretion to your Trustee to determine when and how much money to distribute from that single pot of money to each of your grandchildren or other descendants (if they are beneficiaries as well) based on a specific standard or desired objective written into the Trust. The Trust Agreement may specify that all of the beneficiaries be treated equally, or it may allow the Trustee to make unequal distributions among the beneficiaries based on their individual needs. You can also use this kind of Trust to leave a continuing financial legacy for multiple generations of your family.

2. SEPARATE SHARE TRUSTS FOR EACH GRANDCHILD. Many grandparents choose to create separate Trusts for each grandchild and put equal amounts of money into each grandchild’s individual Trust. The Trustee can then decide when and how much money to distribute to each grandchild from their individual Trust based on the standards written into the Trust instrument.

GIVE INSTRUCTIONS. One of the advantages of establishing Trusts for grandchildren is that you can work with your lawyer to draft specific language in the Trust. These provisions are helpful to the Trustee in the administration of the Trust for the benefit of the grandchildren.

For instance, you can set up your trust to distribute funds when the beneficiaries attain certain ages — such as 35, 45, 55 — rather than all at once. You can also leave recommendations for your Trustee, asking your Trustee to consider approving distributions for paying college tuition, buying a home, or addressing other goals such as starting a business. Alternately, you could ask the Trustee to match your grandchild’s funds to buy a new car, rather than pay for the entire car, for example.

To help the Trustee understand your intentions, a commonly used standard for discretionary distributions is "health, education, support, and maintenance." The Trust document may include a broader standard or no standard at all. Sometimes the Trustee is directed to make distributions by another party such as a distribution committee or Trust Advisor. Your lawyer can help you understand the benefits of these different distribution standards.

DISCUSS WITH FAMILY. Just as important as coming up with all the stipulations for a Trust is a frank family conversation about the concept. You may also want to discuss with the parents how much information to provide your grandchildren about the Trusts you’re creating for them. Talking openly to children about inheriting wealth rather than keeping it confidential until they’re older can give your family time to educate your grandchildren about responsible money management.

However, each family needs to decide for themselves the best time to speak to grandchildren about Trust funds and the best way to communicate the information so that awareness of the Trust does not remove the incentive for a grandchild to become financially independent or financially responsible.

For more information about establishing Trusts for your grandchildren, give us a call at 253.858.5434 to set up an appointment today.

When you are starting up a new business, it's a good idea to have an experienced lawyer on your team.

When you are starting up a new business, it's a good idea to have an experienced lawyer on your team. We can help draft Articles of Incorporation, bylaws, Certificates of Formation, operating agreements, and shareholders' agreements, and advise you regarding customer contracts, leases, employee policies, and more. We have been representing small and medium-sized businesses and nonprofits for more than 26 years. If we can be of service to you, your family, friends, neighbors, or coworkers, give us a call at 253.858.5434 to set up an appointment today. We proudly represent clients throughout Washington and Idaho and are available to meet in person, by phone, or via video conference.

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.