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.
National Elder Law Month: 5 Ways Attorneys Can Help Seniors
May is National Elder Law Month. Unlike most attorneys whose work is defined by the type of law they practice, elder law attorneys are best described by the clients they serve. Elder law attorneys work with seniors, disabled individuals, and their families in the following areas:
Estate Planning Tips When You Near the Tax Exemption Limits
The estate tax exemption, currently set at $11.7 million for singles and $23.4 million for married couples, is set to expire in 2026. However, the current administration has signaled a desire to reduce the exemption, though no one knows exactly when that might happen or how low the exemption might go. This uncertainty means that anyone with more than $5 million in assets may want to maximize life-time giving while minimizing taxes.
5 Tips for Helping a Loved One Deal with Memory Loss
Diagnosing memory problems can be difficult. Memory problems can be caused by depression, thyroid problems, a reaction between medications, dehydration, vitamin deficiency, stroke, infections, and dementia. If you are beginning to suspect that a loved one may be developing a memory problem, there are actions you can take immediately to help them.
New Technology Can Help Seniors Age In Place
To age in place successfully, a senior has to be able to engage with others, and remain healthy and safe in their independent living situation. The right technology can support their ability to do that. Discuss whether certain apps or devices might help your loved one stay safe and healthy, and consult with their primary care practitioner to identify areas where technology may help now and in the future.
Potential Tax Changes that Could Impact Your Estate Planning
Before he was elected, President Biden campaigned on a promise to lower the estate tax exemption limit, and to consider abolishing the step-up in basis for capital gains tax. While it is difficult to predict when the Biden administration will turn its attention to taxes, it appears that their current priorities are managing the pandemic and shoring up the economy. That leaves a small window to consider how these proposed changes may impact your estate plan, and to prepare any necessary changes in advance of when it will be discussed.
Common Mistakes with DIY Estate Plans
The internet offers all the information and tools we need at our fingertips to create our own estate plan, right? For most people, this is simply not true. Several years ago, Consumer Reports®, an independent nonprofit consumer watchdog group, created wills using the forms provided by DIY websites and asked three law professors to review them. Although the professors found that the wills drafted using the DIY services were better than wills drafted by non-lawyers on their own, they were inadequate to fully meet the needs of most consumers. Although your DIY “estate plan” may initially cost only $49.95, it may end up being much, much more expensive than an estate plan designed by an experienced estate planning attorney.
How do I avoid probate?
It seems like everyone wants to avoid probate.
While there can be benefits to avoiding probate, most of my clients are best served by planning for their estates to go through probate, rather than using a revocable living trust. There are a lot of myths about why probate should be avoided, particularly in Washington State.
What Type of Trust Do I Need?
Last week, I started this series on trusts with a very basic overview of what a trust is — a legal agreement between three parties, captured in a document usually called trust agreement, where the trustee(s) manages the assets of the grantor(s) for the benefit of the beneficiary(ies). This week, I’m focusing on some of the main types of trusts. Trusts can be broadly sorted into binary categories, and it’s helpful to start with these broad categories in order to understand why your attorney is recommending one type of trust over another. Different trusts are useful for different reasons, depending on the situation.
What is a trust?
For the month of January, I’m going to explore trusts. Trusts can be a useful part of an estate plan, but they are not nearly as ubiquitous in Washington State as they are in man other parts of the country. In many states, like California and Florida, trusts are significantly easier and cheaper than probate, where a $670,000 estate could spend almost $34,000 on attorney fees and court fees. In Washington, attorney and court fees rarely exceed a few thousand dollars. Because trusts are not as frequently used in Washington, I get a lot of questions about what they are, how they work, and why I am (or am not) recommending one. This series of blogs will help explain what a trust is, what the differences are between different kinds of trusts, and when you might need one.