What is estate
planning? Estate planning is the management and preservation of
your assets in order to accomplish your financial goals and
minimize taxes.
Do I need an attorney?
Washington State law does not require you to have an attorney
write your will; however,
Washington has complicated laws that are different from other
states and so hiring an attorney is often necessary if you do
not want to have to navigate and learn these laws on your own.
Washington attorneys are trained to fully understand these laws
and create your will in compliance with the law.
What is an estate?
Your
“estate” includes each and every asset you own (i.e. your house,
car, checking and savings accounts, pensions, etc.), along with your
debts (i.e. mortgage, car loans, credit card debt, etc.).
When should I start my estate plan? You should
start your estate plan NOW! Even if you do not believe
that you have
any assets at this point, you never know when your situation
will change – you
may inherit money, you might receive life insurance benefits, or
even stock options. In
addition, everyone can benefit from having a durable power of attorney and
living will, so that, in the unfortunate event that you are not
able to make your own health-care decisions or financial
decisions, you can choose who
will make these decisions for you. You may want to give
this power to your spouse – or your parents – or your sibling… Washington state has
specific documents that allow you to choose rather than placing
this decision in the hands of your doctor and the court.
What is probate?
Probate
is a court procedure in which assets pass from the deceased
person to the living beneficiaries. Probate can be a
lengthy and costly process. It is also a public
proceeding, meaning that all probate documents are available to
the public. What many people do not know is that your
estate will pass through probate whether you have a will or die
"intestate" (without a will).
In some instances, a person may be able to avoid probate.
How can I avoid
probate? You can avoid probate to some extent with careful
planning. For example, setting up a Revocable Living Trust will
allow all of the property in the trust to pass to the
beneficiaries without going through probate. This allows for a
quick transfer of property – and keeps the process confidential
(as you are able to avoid probate which is a public procedure).
However, this type of trust is often more costly to create than
a will and is only effective when all of the assets have been
properly transferred into the trust.
What is the death tax?
At the federal level, if your estate is worth more than $2,000,000, you
may be responsible for paying the estate
tax (“death tax”). Washington state also has an estate
tax.
Can I revise my Will? YES -
absolutely! You may revise your will at any time. It
is common to revise a will when you have a child, get married or
divorced or have some other significant life change.
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