What is Estate Planning?
Estate Planning is defined many different ways. In the broad sense, Estate Planning is the process whereby an individual schedules how assets should be distributed during his or her life, and finally how assets should be distributed when he or she passes away. If you do not affirmatively act to "plan" how assets will be distributed at your passing, assets may instead pass to individuals you otherwise would not desire to receive them. Or assets could transfer to the individuals you desire, but instantly and without any restriction. A common restriction is an age restriction where a beneficiary does not receive assets until obtaining a certain age. Unfortunate income tax, gift tax, and estate tax results could also occur without any Estate Planning.
Some of the tools for scheduling how assets are distributed during life and at an individual's passing include Wills, Revocable Trusts, Irrevocable Trusts, Community Property Agreements, and Beneficiary Designations for retirement plans and life insurance policies. These documents can be very complicated and many pages long -- or relatively short and simple. This is true regardless of the value or amount of assets owned by an individual. The extent and complexity of Estate Planning documents depends on the planning goals of the individual, the types of assets owned, the value of assets owned, and whether assets are owned jointly or individually. Planning goals of an individual can be numerous and varied. Who do you want to receive your assets? Children? Grandchildren? Friends? Charities? Are any beneficiaries disabled? Are there certain individuals who should not receive anything? Should age or other restrictions be made for certain beneficiaries? Should gifting be done during your life as opposed to at your passing? Do you feel strongly that certain individuals should receive certain items of personal property? To what extent should income tax, estate tax, and gift tax planning be implemented? What coordination is desired between beneficiaries under your will and beneficiaries under retirement plans, life insurance policies, and jointly held assets? Should you name an individual or your estate as designated beneficiary of a retirement plan or life insurance policy? If you have a minor child, who do you desire to act as guardian? Do you own property located outside of Washington state? Do you own interests in entities such as LLCs, corporations, or partnerships? These and other questions must be investigated before implementing an Estate Plan.
In addition to distribution of assets both during life and at an individual's passing, Estate Planning also includes the process of naming another individual to act upon your behalf in certain situations. If you become unable to act on your own behalf, do you want another individual to make decisions for you? Do you want a certain individual to make financial decisions while you are incapacitated? Do you want a certain individual to make health care decisions while you are incapacitated? You can name these specific individuals to act on your behalf with a power of attorney. Without a power of attorney, these decisions could be made by an individual who you otherwise might not want to make these decisions on your behalf.
There is not a cookie cutter template that is appropriate for every Estate Plan. Effective Estate Planning requires knowledge of an individual's planning goals, as well as an understanding of how to implement a process for achieving those goals. Please call or email regarding a free initial consultation if you want to talk more about Estate Planning options (including, but not limited to wills, trusts, and powers of attorney), or if you desire review of current Estate Planning documents. Mobile appointments are available for clients or prospective clients who have difficulty traveling -- including clients in Mountlake Terrace, Shoreline, and Lake Forest Park, as well as clients living in other parts of northwest Washington.
What is Probate?
Probate is a court process that may or may not be needed depending on the character and value of assets owned by an individual when they pass away. Are all assets owned jointly, or are some assets owned individually? What Designated Beneficiaries have been named for retirement plans and life insurance policies? Did the individual have debts at his or her passing? Did the individual own property located outside of Washington state? These questions and others must be asked before determining whether or not a probate is needed. Some individuals own property such that no probate is ever needed upon their passing. All assets can be transferred to beneficiaries without the need for probate.
However, if probate is needed regarding assets owned in Washington state, then a legal proceeding must be initiated with a Washington court. If there is no disagreement between beneficiaries, then this generally is a routine process whereby the Washington court issues Letters Testamentary recognizing an individual as the Personal Representative (also called the Executor) of the estate. This Personal Representative (Executor) then administers the terms of the Will and helps to implement the orderly transfer of assets. If there is no Will, then the process is similar, but the labeling is different: the court will issue Letters of Administration instead of Letters Testamentary, and the Personal Representative should always be labeled a Personal Representative and should not technically be called an Executor.
In either instance, when all administrative tasks of the estate are completed, all assets are properly transferred to beneficiaries, and all expenses of the estate are paid, the estate can be closed with the Washington court, and the probate process is completed with minimal court involvement. The entire probate process often can be accomplished in one year or less. However, all probates are unique and some can last two years or more. Please call or email regarding a free initial consultation if you would like to talk more about the probate process. Mobile appointments are available for clients or prospective clients who have difficulty traveling -- including clients in Mountlake Terrace, Shoreline, and Lake Forest Park, as well as clients living in other parts of northwest Washington.
Estate Planning is defined many different ways. In the broad sense, Estate Planning is the process whereby an individual schedules how assets should be distributed during his or her life, and finally how assets should be distributed when he or she passes away. If you do not affirmatively act to "plan" how assets will be distributed at your passing, assets may instead pass to individuals you otherwise would not desire to receive them. Or assets could transfer to the individuals you desire, but instantly and without any restriction. A common restriction is an age restriction where a beneficiary does not receive assets until obtaining a certain age. Unfortunate income tax, gift tax, and estate tax results could also occur without any Estate Planning.
Some of the tools for scheduling how assets are distributed during life and at an individual's passing include Wills, Revocable Trusts, Irrevocable Trusts, Community Property Agreements, and Beneficiary Designations for retirement plans and life insurance policies. These documents can be very complicated and many pages long -- or relatively short and simple. This is true regardless of the value or amount of assets owned by an individual. The extent and complexity of Estate Planning documents depends on the planning goals of the individual, the types of assets owned, the value of assets owned, and whether assets are owned jointly or individually. Planning goals of an individual can be numerous and varied. Who do you want to receive your assets? Children? Grandchildren? Friends? Charities? Are any beneficiaries disabled? Are there certain individuals who should not receive anything? Should age or other restrictions be made for certain beneficiaries? Should gifting be done during your life as opposed to at your passing? Do you feel strongly that certain individuals should receive certain items of personal property? To what extent should income tax, estate tax, and gift tax planning be implemented? What coordination is desired between beneficiaries under your will and beneficiaries under retirement plans, life insurance policies, and jointly held assets? Should you name an individual or your estate as designated beneficiary of a retirement plan or life insurance policy? If you have a minor child, who do you desire to act as guardian? Do you own property located outside of Washington state? Do you own interests in entities such as LLCs, corporations, or partnerships? These and other questions must be investigated before implementing an Estate Plan.
In addition to distribution of assets both during life and at an individual's passing, Estate Planning also includes the process of naming another individual to act upon your behalf in certain situations. If you become unable to act on your own behalf, do you want another individual to make decisions for you? Do you want a certain individual to make financial decisions while you are incapacitated? Do you want a certain individual to make health care decisions while you are incapacitated? You can name these specific individuals to act on your behalf with a power of attorney. Without a power of attorney, these decisions could be made by an individual who you otherwise might not want to make these decisions on your behalf.
There is not a cookie cutter template that is appropriate for every Estate Plan. Effective Estate Planning requires knowledge of an individual's planning goals, as well as an understanding of how to implement a process for achieving those goals. Please call or email regarding a free initial consultation if you want to talk more about Estate Planning options (including, but not limited to wills, trusts, and powers of attorney), or if you desire review of current Estate Planning documents. Mobile appointments are available for clients or prospective clients who have difficulty traveling -- including clients in Mountlake Terrace, Shoreline, and Lake Forest Park, as well as clients living in other parts of northwest Washington.
What is Probate?
Probate is a court process that may or may not be needed depending on the character and value of assets owned by an individual when they pass away. Are all assets owned jointly, or are some assets owned individually? What Designated Beneficiaries have been named for retirement plans and life insurance policies? Did the individual have debts at his or her passing? Did the individual own property located outside of Washington state? These questions and others must be asked before determining whether or not a probate is needed. Some individuals own property such that no probate is ever needed upon their passing. All assets can be transferred to beneficiaries without the need for probate.
However, if probate is needed regarding assets owned in Washington state, then a legal proceeding must be initiated with a Washington court. If there is no disagreement between beneficiaries, then this generally is a routine process whereby the Washington court issues Letters Testamentary recognizing an individual as the Personal Representative (also called the Executor) of the estate. This Personal Representative (Executor) then administers the terms of the Will and helps to implement the orderly transfer of assets. If there is no Will, then the process is similar, but the labeling is different: the court will issue Letters of Administration instead of Letters Testamentary, and the Personal Representative should always be labeled a Personal Representative and should not technically be called an Executor.
In either instance, when all administrative tasks of the estate are completed, all assets are properly transferred to beneficiaries, and all expenses of the estate are paid, the estate can be closed with the Washington court, and the probate process is completed with minimal court involvement. The entire probate process often can be accomplished in one year or less. However, all probates are unique and some can last two years or more. Please call or email regarding a free initial consultation if you would like to talk more about the probate process. Mobile appointments are available for clients or prospective clients who have difficulty traveling -- including clients in Mountlake Terrace, Shoreline, and Lake Forest Park, as well as clients living in other parts of northwest Washington.
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Andrew R. Jerome, PLLC
Attorney at Law, LL.M. in Taxation
5803 232nd Street SW Suite 1, Mountlake Terrace, WA 98043
Telephone 425.284.2933
Email aj@arj-law.com
Andrew R. Jerome, PLLC is a law firm that serves clients all across Washington state (WA), including Mountlake Terrace, Shoreline, Lake Forest Park,
Kirkland, Bellevue, Seattle, Lynnwood, Bothell, Woodinville, Mercer Island, Redmond, Issaquah, Kent, and Yakima.
Attorney at Law, LL.M. in Taxation
5803 232nd Street SW Suite 1, Mountlake Terrace, WA 98043
Telephone 425.284.2933
Email aj@arj-law.com
Andrew R. Jerome, PLLC is a law firm that serves clients all across Washington state (WA), including Mountlake Terrace, Shoreline, Lake Forest Park,
Kirkland, Bellevue, Seattle, Lynnwood, Bothell, Woodinville, Mercer Island, Redmond, Issaquah, Kent, and Yakima.
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