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News & Resources
What will happen to my retirement plan?
Did you know that your Will usually doesn’t control who receives your retirement accounts (IRAs, 401(k)s, etc.) when you die? Distributions from those accounts are controlled by a beneficiary designation form that you file with the company holding that account, not by…
What happens to your bills when you die?
Originally posted 1/8/2018 and updated 3/7/2022 Do you know what happens to your bills when you die? In Washington, when you die, your creditors don’t give up their right to be paid, but they can’t make the beneficiaries under your will (or your heirs at law if you…
Do I have to pay Washington Estate Taxes?
Originally posted 1/16/2018 and updated 3/1/2022 Did you know that Washington state has its own estate tax, and that it starts at a much lower dollar threshold than the federal tax? Your “estate” is essentially the property you own when you die, and an estate tax is…
How much can I own and still qualify for Medicaid?
Originally posted 2/1/2018 and updated 2/28/22 Do you know how much you can own and still qualify for Medicaid long-term care? Because Medicaid is a needs-based program, there are limits on how much you can own and still qualify for long term care (e.g., nursing…
Power of Attorney vs. Durable Power of Attorney
Originally posted 12/12/2017 and revised 2/15/2022 Did you know what makes a durable power of attorney “durable”? Powers of attorney fall into two general categories: powers of attorney and durable powers of attorney. If you execute a non-durable power of attorney,…
Medicaid and Gifting
Originally posted on 12/26/2017 and revised 2/1/2022 Did you know that making a gift does not necessarily disqualify you from getting Medicaid for the next five years? Medicaid is a needs-based program, which means that your income and assets must be below a certain…
Do I have to pay taxes when I receive a gift?
In most cases, you don’t have to pay taxes when you receive a gift. In Washington, when you receive a gift, the person who gave you the gift pays the taxes (I talked about the taxes that the gift giver may have to pay in my January 4th post). The one exception is…
You Probably Don’t Have to Pay Taxes When You Give That Gift
Many people think that if you make a gift larger than $16,000 (prior to 2022, this amount was $15,000), you have to pay taxes on that gift, but for most people the answer is that you don’t owe any taxes. Under current federal law, a person can make up to $12.06…
What happens if you die without a will in Washington State?
Did you know that if you die without a will, a revocable trust, or some other means to pass your assets upon death, they will be distributed to your relatives under the Washington State laws of intestacy? Under those laws, if you are married your spouse gets all of…
Revocable Trust and Medicaid Planning – Think Twice
Many people use a revocable trust (also known as a living trust) instead of a will to do their estate planning. Revocable trusts are a great estate planning tool, but if you and your spouse want to include Medicaid planning in your estate plan, you might want to…
Firearms Transfers
What happens if you’re the executor of an estate and the person who passed away owned a gun? On one hand, the firearm is just another estate asset to be distributed or disposed of under the terms of the will. On the other hand, there are very specific legal rules…
Mental health advanced directive
For many people with mental illnesses, the capacity to make treatment decisions fluctuates over time. Often, when they are most in need of treatment, they are least able to give informed consent to such care. This can lead to delays in treatment and may even prevent…
What is a Guardianship?
If a person is unable to make decisions for him or herself due to some form of incapacity, the courts may determine that a guardianship should be established for that person. Along with establishing a guardianship for an incapacitated adult, the court can also…
Durable power of attorney for health care and why you might want one
Do you know what a durable power of attorney for health care is and why you might want one? When you go to the doctor, or to the hospital, you get to tell the doctor what treatment you want, or don’t want, but who talks to the doctors if you can’t? Washington…
Health Care Decisions for Your Children
Do you know who makes health care decisions for your children if you aren’t available? Now that summer is here, families are headed out for a number of activities, such as vacation trips and summer camps. These activities often mean that you and your children are…
Estate Planning After Divorce
Do you know what happens to your estate plan when you get divorced? While the law does a good job of removing your ex-spouse from your estate plan (other than your ERISA-regulated retirement accounts), you should consider redoing your estate plan when you get…
Advanced Health Care Directives
One of the fundamental tenets of the law, both in Washington State and throughout this country, is that you have the right to refuse medical treatment, even if that refusal will hasten your death. While you can exercise that right at any time, it becomes particularly…
Communicating with Beneficiaries
Do you know what an executor has to tell the beneficiaries of the will? If you are the executor of an estate, you have a duty to provide information about the estate to the beneficiaries, but how much do you have to tell them? Not very much as it turns out. You have…
Do you know who decides what happens to your body when you die?
When you die, someone has to decide what to do about the disposition of your remains (i.e., whether you are buried, cremated, or some other option). You can make the decision while you are alive, but you need to do it in a way that conforms to Washington state law or…
What does “community property” mean?
Washington is a community property state, but what does that mean? In Washington, the property owned by a person who is married (I’m using marriage and spouse in this post, but the same rules apply to a couple in a state registered domestic partnership) falls into…
What happens when you lose your will?
Do you know what happens if you lose your will? You may have a safe, a filing cabinet, or a fireproof box where you keep all of your important papers. When you die, your executor needs to file your original will with the court to open the probate of your estate, but…
Do you know what it takes for your will to be valid?
For your will to have been validly executed, if you are signing it in Washington, it has to meet the legal requirements for a will under Washington law. If your will doesn’t meet the legal requirements, then you really don’t have a will. If your will is not valid,…
Gift List
Using a gift list to supplement your will While a gift list can’t replace your will, using a gift list and a will together is a great way to add flexibility to your estate planning. When you do your estate planning, you may want to leave a specific item to someone. …
Using a Small Estate Affidavit to Avoid Probate
Did you know that when you die, your heirs and beneficiaries may be able to use a small estate affidavit instead of a probate to transfer your assets? While small estate affidavits are very useful, there are some limitations on when affidavits can be used and who can…
Did you know that you can establish a trust for your pet?
When you die, what will happen to your pet? Hopefully you’ve picked out someone to take care of your pet, but how do you know that that person will actually care for your pet the way you want? Another thing to consider is that caring for a pet can be expensive. …
Making a gift to a minor? The Uniform Transfers to Minors Act may be the way to go.
Did you know that you can make a gift of property to a minor without needing to set up a trust? While trusts are a great way to hold property for a minor, there are situations where a trust may be a bit of overkill, or sometimes a gift or bequest is made before a…
What happens if you leave your IRA to your children “per stirpes?”
When you name your children as the beneficiaries of your retirement account or life insurance policy, do you know what happens if one of them dies before you? You very likely named your spouses as the beneficiary of your life insurance policies and retirement…
Estate Planning and Your Vacation Home
Originally posted 1/18/20218 and updated 3/07/2022 If you live in one state, but have real property in another state, you’ll probably end up with two probates: one in your home state and another one in the other state. The reason for the second probate is that a…