Basic Estate Planning Documents and Why You Need Them

ESTATE PLANNING: THE BASIC DOCUMENTS EVERYONE NEEDS AND WHY Presented by: Beth A. McDaniel Law Offices of Beth A. McDaniel, PLLC 15 South Grady Way, Suite 249 Renton, WA 98057 (425) 227-8700 beth@bethmcdaniel.com

Who needs a Will? There is an interest in real property There are assets of $100,000 or more without a beneficiary/co-owner There are with minor children There is personal property There is with a revocable living trust There is a committed intimate relationship

What does a Will Do? Determines who gets your assets and how Avoids intestacy Allows the nomination of a personal representative Allows the nomination of guardians and creation of trusts for minor children Allows planning for irresponsible or disabled individuals

Does your Will do this? Deceased beneficiaries Beneficiaries who become disabled, incarcerated, homeless, or addicted Missing beneficiaries Plan for Contingencies like: Predeceased personal representative Non-existence banks or charities

Things to remember with Wills Not having a Will does not avoid probate Wills have no legal effect while you are alive Wills can provide for pets Wills are state law specific Myth: there is a 2-3% probate tax on ever probate Myth: the state will get your assets if you don t have a Will

What is probate? An Order is signed which admits the Will and appoints a personal representative If a will is properly drafted, court does not directly supervise for one year. Notice goes to heirs, DSHS, and Department of Revenue Prior to closing, assets are inventoried; sold, if necessary; and taxes/liabilities are paid Assets are distributed to beneficiaries

The Probate Process Contd Washington has one of the better systems If you don t have a Will, an administrator is appointed, and the law directs who receives the assets. Administrators, Personal Representatives, and Trustees are fiduciaries Trusts need to be fully funded The alternative to probate is Revocable Living Trusts Advisable if taxable estate (married), there is real property located outside of state, or incapacity protection is a concern

Non-Probate Assets Assets with beneficiary designations Assets with co- ownership Assets that are in a Trust Transfer on Death Deeds

Incapacity Protection Durable Powers of Attorney for Healthcare Decisions of Minor Children Durable Powers of Attorney -- Financial Durable Powers of Attorney -- Health enables someone to make medical and housing decisions, including hiring medical personnel enables someone to manage your financial affairs HIPAA

Special Considerations with Powers of Attorneys establish a trust on your behalf for a disabled child or grandchild? Can the agent make all necessary transfers for qualifying for long-term care? Can the agent Does it give the specific powers to amended or revoke documents or alter beneficiary designations? Durable Powers of Attorney for FINANCIAL Matters Is there proper authority regarding gifting? Does the agent have full authority to represent you in tax matters Can the agent represent you in bankruptcy? Can the agent represent you in litigation?

Special Considerations Continued Is effective immediately or on disability? Durable Power of Attorney for HEALTHCARE Decisions Is there the ability to delegate health care decisions?

Special Considerations Continued Compensation of agent? Effectiveness Immediate or Upon Incapacity General Issues Provision for acceptance by agent? Do you wish to designate any individuals you wish to not have the ability to demand an accounting or serve as guardian/conservator?

Other important documents Healthcare Directive Directives Regarding Disposition of Remains Covid Directives Advance Dementia Directives

Any questions?