Hanis Irvine Prothero, PLLCCriminal Defense Lawyer Kent, WA | Divorce | Personal Injury2024-03-18T16:10:37Zhttps://www.hiplawfirm.com/feed/atom/WordPress/wp-content/uploads/sites/1602357/2021/03/cropped-HIP_fav-icon-32x32.pngOn Behalf of Hanis Irvine Prothero, PLLChttps://www.hiplawfirm.com/?p=501712024-03-15T16:11:52Z2024-03-18T16:10:37ZHealth care directive basics
Perhaps another term for health care directive – a “living will” – is more familiar to our readers. The terms are interchangeable, but “health care directive” is becoming more favored in order to differentiate it from a last will and testament.
These days in Washington, you’ll hear the document most commonly referred to as a health care directive.
In this document, the planner provides details of what type of medical care he or she would like to receive in the event of incapacity or in some kind of emergency situation – if the person is not capable of providing those details or instructions directly.
For example, a planner may have thoughts on resuscitation or end-of-life care. Or, maybe a person has an aversion to certain types of medical treatments. Whatever the case may be, the planner can make those details known in a health care directive.
By putting these wishes in a health care directive, the planner can make sure their wishes are respected and spare their loved ones the burden of making difficult health care decisions on their own.
Many people think of estate planning as a way to address assets, heirs and beneficiaries. That is true, but health care is a big part of most comprehensive estate plans. Make sure you have your preferences stated in a health care directive.]]>On Behalf of Hanis Irvine Prothero, PLLChttps://www.hiplawfirm.com/?p=501692024-03-05T10:49:16Z2024-03-05T10:49:16Zfor how this could impact the will is key as it could be problematic and should be avoided.
How interested witnesses can be an obstacle
When a person executes their will, there must be two competent witnesses to the will being signed by the testator or acknowledging that the will is being signed at their request. The reason the witnesses should not be interested parties is to avoid the possibility of a conflict of interest and somehow tilting the testator’s decisions in a certain way.
Even if there is nothing untoward happening, those who are skeptical of the will, question if the testator’s intentions were carried out or are unhappy with what they are receiving could say that the interested party coerced the testator in some way. A will can be invalidated if there was intimidation, undue influence, fraud or other behaviors that seemingly impacted their decisions.
An interested witness is someone who stands to gain from the will. It will not automatically invalidate the will if an interested witness is present. This can be overcome if there are two other witnesses who are not interested in the contents of the will. If there are only two witnesses and one is interested, then there will be a rebuttable presumption that the witness was influencing the testator.
The interested witness who fails to show they did not influence the testator can still receive a portion of the testator’s estate, but it will only be that which they would have gotten if there was no will. In other words, they could be entitled to some of the property if the testator died intestate, but they will receive no more than that.
Know the intricate details of creating a valid will
As this shows, the creation of a will is not a simple matter of writing and executing it. The witnesses are also important as are other small aspects that people might not consider as they go through the process.
It is critical for people to protect their property and their loved ones while simultaneously deciding how they want their assets distributed after they are gone. With that, it is useful to know how to write a valid will and keep issues such as an interested witness from being a sticking point to the testator’s wishes being carried out. This is vital with wills and any other aspect of estate planning.
]]>On Behalf of Hanis Irvine Prothero, PLLChttps://www.hiplawfirm.com/?p=501702024-03-11T19:40:41Z2024-03-04T19:55:12ZFederal threshold
Both federal and state estate taxes have exclusion amounts. You can think of these as thresholds: If the dollar value of your estate is over a certain limit, the tax applies; if the value is under that limit, the tax does not apply.
Both the federal and the Washington exclusion amounts have changed many times over the years, and both are set quite high. The federal estate tax exclusion is $136,100,000 for the estates of people who die in 2024. This high threshold means the federal estate tax is a matter of concern only to a small number of families.
Washington threshold
The threshold for the Washington estate tax is quite a bit lower. For estates of a person who dies in 2024, the Washington state tax kicks in above $2,193,000 after all deductions.
After that point, the remaining value is taxed according to a set of progressively higher tax brackets, ranging from 10% to 20%.
Your estate plan and estate taxes
When you plan your estate, it's wise to keep estate taxes in mind. If you think the total value of your estate could be over the exclusion amounts, start looking into deductions and other ways to reduce your estate's tax liability.]]>On Behalf of Hanis Irvine Prothero, PLLChttps://www.hiplawfirm.com/?p=501522024-02-19T16:50:27Z2024-02-19T16:50:27Zwill, they do not have to look at it again for the rest of their lives. However, failing to update your will may cause complications when it comes time to distribute your assets. For that reason, estate planning experts suggest updating your will every three to five years or when a major life event occurs.
Common reasons to update your will may include:
Moving to a new state
Marriage or divorce
Changes in relationships with beneficiaries
Purchasing or selling a home or other large asset
The birth of a child/grandchild
Changes in the law
How to update a will in Washington
There are a few ways for you to make changes to your existing will under Washington law. Your first option is to create a new will, in which you will have to revoke any previous versions of your will. You can then physically destroy your old will (both the original and any copies).
You also have the option to create a new will and specify that only certain provisions of your old will should be revoked. You will then have to destroy the parts of the old will that have been revoked.
Finally, you have the option to amend your existing will by drafting a codicil. A codicil must adhere to the same requirements as a will. You will also have to reference your original will in your codicil.
Updating your will regularly in accordance with the law can save your loved ones a lot of trouble in the future.]]>On Behalf of Hanis Irvine Prothero, PLLChttps://www.hiplawfirm.com/?p=501512024-02-05T15:41:45Z2024-02-05T15:41:45Zestate planning document to create and update, it is also important to consider trusts, how they operate and if they would be a beneficial document to include.
Types of trusts
To determine if a trust is right for you, you should have a basis for the different types available. The five most common types of trusts will be briefly discussed.
The first is a living trust. This is a trust made during your lifetime and is also referred to as a living trust. If your living trust is revocable, you can make changes to it throughout your lifetime. You can also choose to terminate the trust as well. After you pass, the assets held in the revocable trust will transfer outside of the probate process.
You can also choose to create an irrevocable living trust. Much like a revocable trust, this is created during your lifetime; however, it cannot be easily modified. While you give up control of your assets placed in an irrevocable trust, they are better protected from creditor claims and can sometimes avoid being subjected to estate taxes.
A testamentary trust is created in a will and only becomes active after the probate process. These are often made if you seek to leave assets or certain property to an individual after you pass but require a trustee to manage them.
Next, you could create a charitable remainder trust, which is used to provide a donation to a charitable donation. Finally, you could create a special needs trust. These are created to benefit a disabled loved one without impacting their eligibility to receive government benefits.
Considerations
There are many factors and considerations that go into the creation of a trust. However, it is important to consider what is necessary now. Do you want the flexibility of a revocable living trust? Or is it more ideal to have an irrevocable trust that provides more protection?
Do you seek you pass your property and assets to someone that cannot effectively manage their own inheritance? Or do you seek to provide for a disabled loved one? A legal professional can help answer any questions you have, helping you navigate this matter.]]>On Behalf of Hanis Irvine Prothero, PLLChttps://www.hiplawfirm.com/?p=501492024-01-25T18:38:18Z2024-01-22T18:36:10ZKnowing the difference is key.
Understand how a revocable living trust works
With a revocable living trust, the person who creates it is known as the grantor or the trustor. They will name another person to be the trustee to oversee the trust while the trustor is alive and after they have died. The trustor puts property into the trust and the trust will own the assets. The revocable living trust is particularly beneficial if the trustor is incapacitated.
The trust can pass the person’s assets to beneficiaries during their lifetime. For people with substantial assets, this could reduce the chance that there will be an estate tax. It also avoids probate which can be costly and time-consuming. It will shield assets from creditors. The revocable living trust can be changed whenever the trustor chooses to do so.
With a will, the testator will detail how they want their property distributed after they have passed on. That could include anything they own. Real estate, bank accounts, retirement accounts, jewelry, family heirlooms, automobiles – anything they have can be distributed. It is relatively straightforward. Still, a will makes probate necessary to prove its validity. Probate is a public record. The trust accords greater privacy.
Choosing between a will or a trust can be complex
People who are thinking about their estate planning options and are unsure if a will or a revocable living trust is right for them need to gather all the information possible so they make the right decision for themselves and their beneficiaries. Making a mistake can be costly. With that, knowing the positives and negatives of both can be helpful with making a choice that will protect them and their interests.]]>On Behalf of Hanis Irvine Prothero, PLLChttps://www.hiplawfirm.com/?p=501472024-01-11T18:24:24Z2024-01-11T18:24:24ZDodging common mistakes
A recent news article described some of the most common mistakes that people make when they are thinking about their estate plans. The first mistake listed in the article is procrastination. As mentioned, many people wait for years – sometimes even until their senior years – before they even think about getting an estate plan together. But, as the recent article mentioned, it is not a good idea to wait around when it comes to estate planning. Get it done, and make sure you keep it updated.
Another common mistake mentioned in the recent article is the failure to inform loved ones of what, exactly, is in your estate plan. Some people are quite secretive when it comes to estate plans, but why? The loved ones you name in your estate plans are the ones who will benefit from receiving your assets, or they are the ones who will make financial or health decisions on your behalf if you become incapacitated. Keep the relevant people informed of your wishes and plans.
Lastly, be sure to have a comprehensive estate plan – one that includes all of the important and necessary documents to cover most contingencies. It usually isn’t enough to just have a will. Have power of attorney documents drafted, consider the benefits of trusts, make sure you have beneficiaries named on life insurance policies – think of all the possible ways your estate might be impacted upon your death or if you should become incapacitated.]]>On Behalf of Hanis Irvine Prothero, PLLChttps://www.hiplawfirm.com/?p=501462024-01-03T07:36:59Z2024-01-03T07:36:59Zset up their estate plans when they are single and not planning on getting married anytime soon. They may leave their property to parents, siblings or other family members or friends.
There may then come a time when they get married and in all the excitement and business surrounding the wedding, updating estate planning documents is a task that can easily be forgotten.
This can lead to a situation where one spouse passes away with an outdated will that contains no mention of their spouse. What happens then? Does the spouse automatically get nothing?
The omitted spouse
According to Washington law, no. The law states that if a spouse or domestic partner is not named in a will, the spouse or domestic partner must still receive a portion of the estate.
The surviving spouse in this scenario is referred to as an omitted spouse. The law requires that an omitted spouse receive the same amount from the estate that they would have received if their spouse had died intestate, or without a will.
The exception to this law is if there is evidence that failing to include the spouse was intentional. The evidence must be clear and convincing.
Clear and convincing evidence can come in many forms. The court examines several factors when determining if the failure to include the spouse was intentional.
Some of these include any statements made prior to death about not leaving anything to the surviving spouse, the overall distribution of the remainder of the estate and the existence of any pre-nuptial or post-nuptial agreements. The will itself may also contain a clause stating that no property is left to the surviving spouse.
What if I don’t want to include my spouse?
If you are married and intend to leave your spouse out of your will, making sure your will includes this type of clause is the best way to prevent your spouse from claiming status as an omitted spouse after you pass away.
Another way to avoid your spouse gaining the status of an omitted spouse is to leave them something minimal in the will, such as one dollar or a small piece of property with little to no financial value.
Otherwise, if your intent is not to disinherit your spouse, is best to update your will to include your spouse. This should be done as soon as possible after your marriage.
This prevents the complications that often occur when a spouse is left out of a will and there is a question of whether this was intentional. The estate administration process can be lengthy and complex to begin with.
An issue with an omitted spouse only adds to the responsibilities of the estate executor and could potentially lead to full-blown probate litigation.
]]>On Behalf of Hanis Irvine Prothero, PLLChttps://www.hiplawfirm.com/?p=501452023-12-27T21:01:42Z2023-12-22T21:00:53ZOverview of trusts
For many people, the answer to that question is a trust. The basic concept of a trust is fairly straightforward, although trusts can certainly get complicated in a hurry, depending on the situation. For starters, there is the person who wants to establish the trust: usually known as the settlor of the trust. Then, a trustee will be named. The trustee is the party who will have a fiduciary responsibility to take care of the assets in the trust and do what is best for the designated beneficiary. The beneficiary, of course, is the party, or parties, who will benefit from the assets or property in the trust.
Oftentimes, the most difficult aspect of trusts for those who are considering this estate planning options is the fact that the trust becomes the actual owner of the assets or property in question. The settlor is no longer considered the owner for legal purposes.
So, is a trust the right option for your estate plan? Well, every situation is unique, and the specifics of your family and financial situations will be the key to determining whether or not this option is right for you. Be sure to get the right legal information about all of your estate planning options.]]>On Behalf of Hanis Irvine Prothero, PLLChttps://www.hiplawfirm.com/?p=501442023-12-14T16:03:58Z2023-12-08T16:02:57Zrole of a trust and how it can function with a will.
Adding a trust to your estate plan
At Hanis Irvine Prothero, PLLC, our law firm understands the benefits of adding a trust to an estate plan. Thus, our attorneys use their expertise when guiding clients through the estate planning process, ensuring their assets are secure and protected.
When a trust is created, you are essentially creating a separate entity from yourself. This is comparable to starting a business. You or another named person would serve as the trustee. Thus, when you put assets in the trust, these assets are no longer yours but rather property of the trust. This is why a trust does not go through the probate process.
Types of trusts
There are various types of trust, and each type serves its own purpose. Thus, you might find yourself creating one or more trust types. Because there are countless types of trust, the three most common types will be discussed.
The first is a testamentary trust. This type of trust is created in the will document, only going into effect upon your death. Examples of these include a special needs trust, credit shelter trust and a marital deduction trust.
The second type is a living trust. These are created while you are alive, which allows you to serve as the trustee. Additionally, you can choose how long the trust will survive after you pass. The final type is a revocable trust. This means that after you create the rust, you have the ability to revoke, amend or make changes to it.
Be it now or in the future, having a trust in your estate plan could be beneficial. Thus, it is important to understand the role of a trust and what type is most suitable for your estate plan. This could help you when drafting an estate plan, or, if the situation arises, update your current plan.]]>