Planning for the distribution of your estate in Washington State requires a thorough understanding of nonprobate assets, community property laws, and effective estate planning strategies.
Understanding the Benefits of a Credit Shelter Trust
Credit Shelter Trusts, also known as Bypass Trusts or Family Trusts, play a crucial role in estate planning. These trusts offer a strategic approach to maximize the preservation and distribution of wealth, especially in the context of estate taxes. In this blog post, I'll delve into the key aspects of Credit Shelter Trusts, exploring their purpose, mechanics, and the potential benefits they provide for individuals and families.
Defining terms: Omitted Spouse or Domestic Partner
Defining terms: Lapse and Ademption
Protecting Your Adult Children's Inheritance from Their Possible Divorce
How do I protect my daughter’s inheritance from her husband? I know they aren’t happy, and I think they will get divorced soon.
This is a common concern for a lot of my clients — how to protect their adult children from losing their inheritance. The answer is both simple and complicated, because there is the letter of the law, and then there’s what actually happens in reality.
Estate Planning as an LGBTQ+ Family
Since the Supreme Court legalized same-sex marriage in 2015, it would be easy to think that estate planning for LGBTQ+ couples would be just like heterosexual couples. However, same-sex couples may have situations that require extra or special planning, such as adoption by non-biological parents or navigating unsupportive family dynamics. Estate plans for same-sex couples could be more vulnerable to contests from family members who don’t recognize the validity of the couple’s relationship, they could challenge custody over non-biological children if the biological parent passes away, or they could interfere with a spouse’s ability to make medical and financial decisions for their partner.
What's a postnuptial agreement?
A postnuptial agreement, or “postnup,” is similar to a prenuptial agreement, except this legal contract is written and signed after the couple is legally wed. A postnup sets forth how assets will be divided, and may include other provisions dictating marital conduct like the division of household chores to monogamy expectations to how frequently in-laws may visit. Like a prenup, a postnup an be a powerful estate planning tool, when used properly.
What is a prenuptial agreement?
A prenuptial agreement (sometimes called an antenuptial agreement, premarital agreement, or colloquially “prenup”) is a written contract entered into by a couple prior to getting married. The agreement enables them to select and control many of the legal rights they acquire upon marrying, and what happens when their marriage eventually ends (whether by death or divorce). Thus, it can be a powerful estate planning tool, if used properly.
Key Reasons Why You Need to Update Your Estate Plan When You Move to a New State
When people move, they usually remember to get a new driver’s license, to update their voter’s registration, and to find a new doctor. But they usually forget to update their estate plan. While your existing estate play is technically valid in your new state, it may not have the same meaning that is had in your former state. Laws can vary significantly between states, and may affect your income tax, state estate or inheritance tax, and whether your property is considered marital or separate. What makes a good plan in California or Florida may not be favorable in Texas, New York, or Washington, and vise-a-versa.
Estate Planning Solutions for Out-of-State Real Estate
The estate planning process is more complicated if you own real estate in different states because each state’s probate court only has authority over property located in their own state. Thus, if you are a Washington State resident and own a home here, a Washington State probate court can oversee that property’s transfer to your heirs, but it can’t do anything about your timeshare in Hawaii or your mountain vacation home in Colorado. The properties in those states will have to go through an ancillary probate process in the states where they are located. Your personal representative may have to travel there, and you’ll probably need a lawyer in each state.