Estate Planning In Washington State Text Size:

You can save a lot of money and potential chaos and hard feelings' between those closest to you by preplanning how you want your assets managed when you are now longer able to manage them yourself, and how your property will be divided at your death.

Powers of Attorney

In Washington state, you can sign a power of attorney to appoint someone to handle your assets if you become incapacitated. At a minimum, a power of attorney should include the power to:

• Manage and transfer all assets
• Deal with the IRS
• Make gifts on your behalf
• Create and amend any trusts you set up

You don't need to transfer any assets at the time you sign a power of attorney, but it's a good idea to keep the person you've chosen informed about your ongoing financial matters.

You can also appoint a Durable Power of Attorney for Health Care to make health care decisions for you when you're unable to do so yourself. This person can provide informed consent for treatment, or even refuse treatment for you.

Dying Without A Will

If you die without a will (known as dying "intestate") in Washington state, your assets will be divided amongst your immediate family. If you're married, your spouse will inherit your share of the community property (almost everything you've accumulated as a couple since your marriage).

If you have community property and separate property (such as property inherited from your family members that has been kept separate from community property assets), your spouse and any children would share your property. If you don't have children, your spouse and your parents would share your property.

Alternatives To A Will

Wills eventually become public after your death, with the details of what you owned and how much it was worth available to anyone curious enough to read the court file. So many people look for more private ways to transfer their assets.

In Washington state, alternatives to making a will include:

• Life insurance policies or trusts
• Gifting cash or other assets before your death
• "Payable On Death" ("POD") bank accounts
• Holding assets by joint tenancy with right of survivorship ("JTROS"), with the assets transferring automatically to the other joint tenant at the time of death
• Holding assets through a tenancy in common, where each tenant has a divided interest in the property which can be independently sold
• Retirement plans and Individual Retirement Accounts ("IRAs")
• Revocable living trusts, giving all your assets to a trustee for management before your death

Making A Will

A valid will in Washington state can be as simple as a basic statement of your wishes when you die, signed by you and witnessed by two people not named as beneficiaries in your will. It doesn't need to be filed anywhere before your death, but it's a good idea to put the original somewhere where it can easily be found by the person who will be processing your estate, called the "executor."

A Washington lawyer who does a lot of estate planning can explain the consequences of some of the most basic choices you must make, such as whether property you want to leave to your minor children should be put into a trust at your death. It makes sense to consult with a Washington estate planning lawyer and have him or her draft your will, so that you don't make costly mistakes or accidentally not accomplish what you intended.

Providing For Young Children

There are many kinds of trusts, but the most common is one you would set up for your minor children or incapacitated adult relatives for their care after you are gone and until they are old enough or well enough to take care of themselves. A parent can name a trustee to be in control of the finances and decide whether to sell or keep property, and manage assets such as real estate. The trustee, usually a family member or trusted friend, can be paid an hourly rate or a set monthly amount for their services out of the trust assets.

You will probably also want to name a guardian for your children, someone who would have physical custody of and take care of your children on a daily basis should you or your spouse be unable to do so.

Probate

• Filing and validating a will in court
• Paying all the debts and taxes of the deceased person
• Dividing up the assets according to the will or Washington law

If you have no debts and no "titled property" such as real estate or vehicles to pass along to heirs, there may be no need for probate.

Washington probate lawyers generally charge by the hour, and make sure everything gets processed according to the law.

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