Estate Planning Basics

Do I need a Will if I am not married or if I do not have any children?

To be sure that your assets will be distributed the way that you would like them to be to your heirs and beneficiaries, you need a Will or a Trust Agreement that describes, in accordance with the requirements of the law, the distribution scheme that you would like. If you do not have a Will or a Trust, the laws of the state where you live at the time of your death will determine how your assets will be divided. Generally, these laws are set up so that your assets go to your nearest relatives. While this may be an acceptable division for some, it may not be for you.

Also, whether or not you are married, if you have children, you cannot be assured as to who will care for them after your death unless you have a Will. If you do not have any children, the laws still may not describe how you would like your assets distributed. Further, in any event, if you would like your assets distributed to charities or institutions other than relatives, you will need a Will or a Trust Agreement that describes that distribution.

Our Estate Planning attorneys are familiar with all of the alternatives and can advise you based upon your individual preferences, whether or not you need a Will at this time. If you do need a Will, the best place to start is by filling out our Confidential Estate Planning Questionnaire. After you fill out the questionnaire, please give us a call.

I have a house that I no longer need and would like to give to one of my children. What is the best way to do that?

We all want to provide for our families and have them benefit from our work and the property we accumulate. However, something as simple as giving a gift to our children can have unintended tax and legal consequences.

For example, a gift of a house can give rise to a requirement to file a gift tax return and pay gift tax, and may increase the income taxes that your family will have to pay if the property is ever sold. In addition, the gift may create unintended favoritism of one child over another or affect your rights to receive Medicaid or other government benefits in the future. Some of the results are unexpected, so each transaction should be carefully analyzed.

Our Estate Planning attorneys can advise you of the alternatives that are available, the important items you should consider, and how to assure that your assets are transferred without unintended costs.

What is probate?

Probate is a legal process through which your assets are transferred at the time of your death to your heirs and beneficiaries. Generally, assets are transferred after your death in the same manner they are transferred during your life, for example, real properties transferred through deeds and personal properties transferred through bills of sale or assignment documents. While you are alive, you can execute these documents and make the transfers. After you die, the probate process appoints a Personal Representative to step into your place and make those transfers.

Washington has a relatively simple and straight forward probate process. While the probate is proceeding, your assets are not frozen and your Personal Representative has the right to manage and distribute them just as you could during your life. Since probate is a process for transferring assets, depending upon the type of assets and certain other alternatives in the law, a probate may not be necessary after your death.

There are many myths about probate and our experienced Estate Planning and Probate attorneys can help you plan for the best way to dispose of your assets at the time of your death and help your heirs assure that your wishes are carried out. To get you started, we encourage clients to fill out our Confidential Initial Probate Information Form.

What is a Durable Power of Attorney?

A Power of Attorney is a document by which you authorize someone else to act in your place and exercise rights and powers over your assets. A Durable Power of Attorney is one that allows someone to act on your behalf even when you are disabled, incompetent, or otherwise unable to act yourself. One prudent planning mechanism is to execute a Durable Power of Attorney while you are still competent so that you can select the person that you would like to have make decisions concerning your assets if you are ever unable to do so. The alternative is a court appointed guardian. This process can be expensive and intrusive, and the court may appoint someone to act who would be unacceptable to you if you were able to choose.

Our experienced Estate Planning attorneys can help you make these decisions in advance and assure that while you are alive your assets are being taken care of in a way that is acceptable to you.

For more information on estate planning matters, please contact: David E. Myre, Jr.

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