Powers of Attorney and End-of-Life Planning: Effective and Necessary Conversations | Seattle Estate Planning Attorney

Conversations to Have with Your Attorney-In-Fact and Personal Representative

Estate planning involves more than just getting your legal documents completed.   It is also a good idea to talk to the people you choose to name as your attorney-in-fact (via your power of attorney) and personal representative (via your will).

First, explain to each person what responsibilities are entailed and ask them for permission to name them to that role. Next, discuss your wishes concerning medical treatment and end of life care with your attorney-in-fact. With your personal representative, consider discussing your preferences on these issues:

·         whether you prefer burial or cremation,

·         whether you would like a funeral, obituary, memorial service, etc.,

·         whether you have already picked out and paid for a place to be buried or a cremation facility,

·         how to access all of your accounts, online or otherwise,

·         what assets and liabilities you have,

·         any memberships you hold that need to be ended, and

·         how to access your house and safety deposit box.

You may also wish to discuss some of these issues with family members, clergy, your doctor, and friends, particularly if you are in poor health, older, or terminally ill.

Conversations to Have with the Person Who Named You as Attorney-In-Fact or Personal Representative

If someone has named you as their attorney-in-fact or personal representative, it is incredibly important to discuss your role, their situation, and their beliefs about end of life care and medical treatment.  

Sometimes these discussions can be straightforward and relatively easy.  Other times, they can be emotional or difficult to start.  It can be especially difficult for an adult child to bring up these issues with an elderly parent or family member. 

Here are some online resources to begin these conversations and to keep the conversations from becoming too emotional or stressful:

1.      If applicable, read the article, How to Talk to Parents About Aging, about techniques to initiate this conversation with your parents: http://www.realsimple.com/health/preventative-health/aging-caregiving/talk-parents-aging-00000000010442/index.html

2.      Print out and use the Value Worksheet on pages 8 and 9 of the referenced document, available at http://www.compassionwa.org/docs/CandC_Advance_Directive.pdf to guide your conversation.

3.      Consider using the article, Case Stories for Conversation Starters about Advance Care Planning, http://www.chippewavalleycarecoalition.org/documents/case_studies.pdf for a less structured discussion.

4.      Look through 35 Questions to Ask Your Aging Parents to see if there are any other questions you should be asking, http://www.aarp.org/relationships/caregiving-resource-center/info-08-2010/gs_talking_points.html.

Additional Resources

Still have questions? Here are more online resources:

·         Compassion & Choices of Washington  Home Page: http://www.compassionwa.org/

·         Caring Connections Home Page: www.caringinfo.org

·         Chippewa Valley- FAQ:   http://www.chippewavalleycarecoalition.org/faq.phtml

·         Articles by a Doctor regarding End of Life Care and decisions: http://www.dyingwell.org/writings.htm

·         Death With Dignity Act Information: http://www.compassionwa.org/dwda.html

·         POLST Information : http://www.compassionwa.org/polst.html

·         LGBT Issues and Resources: http://www.compassionwa.org/lgbtq.html

Author: Alerian Hall

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How Much are Funeral, Cremation, and other End of Life Fees in Washington?

Is cost a consideration when determining whether you would prefer to be cremated or buried? 

Here is a chart that shows some estimated costs of these services in Washington. 

If you would like specific recommendations of companies that have provided a good value and service to some of our clients, feel free to contact us. 

As always, we are here to answer your questions.  Call us at (206) 923-9356 or email Alerian at mailto:info@insightlawfirm.com if you have questions about this article or would like to schedule an appointment.

Alerian Hall is an estate planning attorney in Seattle, Washington.   Alerian Hall’s financial expertise (she was previously a financial advisor) enables her to provide a truly comprehensive and tailored estate plans for her clients.  Visit Insight Law’s website to learn more. 

www.insightlawfirm.com

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Making Sense of Health Care Directives, Living Wills, and Advance Directives

Depending on what state you live in, you may have heard many terms to describe a document that essentially states what your decisions are in the event of your death or if you are in a terminal condition. The variety of different terms can be confusing.  

Generally, in Washington State, attorneys refer to a document that states your decisions in the event of a terminal illness or your death as a Health Care Directive.  However, Health Care Directives have many other names:

The titles of these documents are not as important as making sure that your documents state your decisions. So, for example, before you panic because you do not have a living will,  read through your legal documents to determine whether they address all of the decisions you face in the event of a terminal illness or your death:

These decisions include:

• whether or not you would like artificially-provided nutrition and hydration if you are in a terminal condition,
• whether or not you would like to be an organ donor,
• who you wish to act as your attorney-in-fact to make health care decisions for you,
• whether you wish to be cremated or buried, and how,
• whether you would like a funeral, wake, or other type of service, and how

If all of these decisions are covered with your existing legal documents, then you can feel relatively confident that you have all the documents you need. If not, feel free to contact us to discuss what documents you need to fill in these gaps.

As always, I'm here to answer your questions.  Call me at (206) 923-9356 or email me at mailto:info@insightlawfirm.com

Alerian Hall is an estate planning attorney in Seattle, Washington.   Alerian Hall’s financial expertise (she was previously a financial advisor) enables her to provide a truly comprehensive and tailored estate plans for her clients. 

Visit Insight Law’s website to learn more:  www.insightlawfirm.com

Author: Alerian Hall

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Clarifying the "Whos" and "Whats" of the Estate Planning Process

As you go through the estate planning process, it is easy to become confused with the different names assigned to different roles.  You will name an attorney-in-fact, executor or personal representative, guardian and trustee if you have minor children, and a successor trustee if you have a trust.  In addition, different documents are used to name the persons you choose for these roles.  The chart below is a reference for you to help keep straight "who" does "what".

As always, I'm here to answer your questions.  Call me at (206) 923-9356 or email me at mailto:info@insightlawfirm.com if you have questions about this article or would like to schedule an appointment.

Alerian Hall is an estate planning attorney in Seattle, Washington.   Alerian Hall’s financial expertise (she was previously a financial advisor) enables her to provide a truly comprehensive and tailored estate plans for her clients.  Visit Insight Law’s website to learn more.  

www.insightlawfirm.com

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2012 Quick Summary Chart of Tax Changes

Here’s a chart designed to give you a quick overview of the 2012 tax changes that are most likely to affect the average person.

Let us know if you have any questions. 

Charts showing more detail on Income Taxes (Chart A) and the Saver’s Tax Credit (Chart B) follow the main chart.

Author: Alerian Hall

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Types of Trusts- Do you need a trust?

Revocable Living Trusts. A revocable living trust is a tool to avoid probate—a process that occurs at your death where the court helps settle your estate.  

If you do not have a tax problem, and you do not have out-of-state property, then you probably do not need a revocable living trust because Washington has a very efficient probate process.  As a result, the administrative hassles and cost of a revocable living trust often outweigh those of probate in Washington.

A revocable living trust does not in itself have any tax benefits, although these can be built in. 

Special Needs Trusts. If you have a child with a disability, I strongly recommend setting up a special needs trust in your will that goes into effect at your death.  This will ensure that the funds you leave to your disabled child will not disqualify them from receiving government benefits.

Other Types of Trusts. In addition to revocable living trusts, estate attorneys can create a variety of additional types of trusts to help you with estate tax planning goals.

For example, if you have a large estate, authorizing a credit shelter trust or disclaimer trust in your will is a relatively inexpensive way of saving estate taxes.  If you have permanent life, an irrevocable life insurance trust (ILIT) may be an efficient way of avoiding estate tax on your insurance proceeds. (FYI—Insurance proceeds are generally not subject to income tax, but they may be subject to estate tax.)    

Except for language authorizing a child’s trust in your will, most people do not need any trusts), but if you do have an estate subject to estate tax or a child with a disability, we can talk about your options.

Author: Alerian Hall

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Who should you choose to be your attorney-in-fact, guardian for children and executor?

Choosing people to fill these fiduciary roles is a big decision. If you are struggling over this issue, here's a summary of qualities to consider as factors. You'll also need alternates and second alternates.

Still coming up blank?  Institutional fiduciaries might be an option. 

As always, I'm here to answer your questions.  Call me at (206) 923-9356 or email me at mailto:info@insightlawfirm.com

Alerian Hall is an estate planning attorney in Seattle, Washington.   Alerian Hall’s financial expertise (she was previously a financial advisor) enables her to provide a truly comprehensive and tailored estate plans for her clients.  Visit Insight Law’s website to learn more. 

Author: Alerian Hall

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Probate: What You Need to Know

What is probate? 

Probate is a legal process using the court system following your death where your Personal Representative settles your estate. The following occur in probate:

• Your Will is filed with the court
• An inventory of your estate is made
• Appraisals of property may need to occur
• Debts are paid
• Taxes are file and paid
• You Will is proven to be valid
• Your heirs are given notice
• Your assets are distributed to beneficiaries

Probate generally takes over a year, which gives time for the above steps to occur, as well as time for creditors to collect (creditors have four months if publication of notice, and up to two years if no publication).

What assets are affected by probate?

Assets can be transferred to your beneficiaries upon your death in 2 different ways depending on what type of asset they are. First, some types of assets (see the assets listed in the left column below) are transferred directly to your beneficiaries based on the beneficiary designation you put on those assets. On the other hand, some types of assets (see the assets listed in the right column below) must go through probate, a process in which a court determine what your intentions were based on your will (or the rules of intestacy if you have no will).

Do I want to avoid probate?

It depends. Assets that go through probate will generally take longer to get to your beneficiaries. Also, probate can be expensive (attorney fees, filing fees, etc.) and a hassle for your Personal Representative. However, probate can be a good thing- especially if you have significant unusual debts, pending lawsuits (or potential professional liability), or a failed business. Also, very small estates have simplified (and therefore cheaper) procedures to follow. Families that are unclear on the entire financial picture of the estate may also want to go through probate to have the court sort everything out for them.

How can I avoid probate?

Use Proper Beneficiary Designations. First, a lot of your assets (see the list in the left column above) already avoid probate, if you have done your beneficiary designation correctly. However, most people will not correctly list their beneficiaries. For that reason, sometimes these assets will end up going back through probate or will not go to the beneficiary you intend.  It is essential you check all of your beneficiary designations to make sure they align with the estate planning we do.

Transfer Assets to a Living Trust. Second, other assets that normally go through probate can avoid probate if you transfer ownership of them from your name into a revocable living trust. This trust will generally be called something like "The Smith Living Trust." This trust is a fairly simple way to avoid probate, and is frequently used for out-of-state property (to avoid going through probate in 2 states).

Change the Ownership Form of Jointly Held Assets.  Finally, some assets that you hold jointly as “Tenants in Common” can be converted into an ownership form called “Joint Tenancy with Rights of Survivorship.” These assets would then pass directly to the other owner (a.k.a. the "joint tenant") upon your death, and vice versa. This is an easy solution when you want your spouse or RDP to receive the assets outright, but is not an available option for many types of assets.  A Community Property Agreement can also be useful tool. These ways of changing of ownership will generally override your will provisions, so it is essential to discuss this with me prior to making these changes.

How do I control who gets my probate assets since there is no beneficiary designation for those assets? 

A Will states your intention for who gets most of your probate assets (in addition to who you want as your Personal Representative).  However, for some assets, like your pets and furniture, you must create a list of these outside of your will.  Since this list doesn’t need to be witnessed, it’s a good idea to write it out in your own handwriting (to show that you really created it). 

STILL HAVE QUESTIONS? Please contact me. I’m happy to help (there’s no fee to chat with me). My email is mailto:info@insightlawfirm.com, and our website is http://www.insightlawfirm.com/.

Author: Alerian Hall

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Insight Law | Renton Estate Planning Attorney | Kent Wills Lawyer | Federal Way Trusts Attorneys | Probate Lawyers Tukwila, WA

Insight Law is a dedicated Seattle Estate Planning Law Firm serving Renton, Kent, Federal Way, Auburn, Tukwila, Burien, Normandy Park, Maple Valley, Enumclaw, Covington, Des Moines, Seatac, and West Seattle. Call Today For A Free Consultation.

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Insight Law is a dedicated Everett Estate Planning Law Firm serving Marysville, Stanwood, Arlington, Fall City, Snohomish, and Mill Creek. Call Today For A Free Consultation.(425)374-3164

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Insight Law is a dedicated Bellevue Estate Planning Law Firm that serves all of East King County including Redmond, Bothell, Kirkland, Issaquah, North Bend, Sammamish, And Fairwood. Call Today For a Free Consultation at  (425)462-6390.

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Naming Minors as Beneficiaries on Your Life Insurance Policies & Investment Accounts

Article Overview:

1.   Life insurance and financial accounts generally have beneficiary designations forms you fill out when you open the account.  Who you state as your beneficiary on these forms is to whom that account goes, regardless of what you state in your Will.

2.                 Don’t list your young children as outright beneficiaries on these forms.

3.                 Instead, use “trust” language, taken from your Will.

4.                 Don’t worry- this is a straightforward and inexpensive solution.

Full article:

Do you currently have your children or other minors named outright as beneficiaries on your investment accounts or insurance policies? 

For example, after your spouse, you list your children as:    

My Children

or

Joe Smith, 50% and Jane Smith, 50%

or

My Estate

Oops! You don’t want to do that!

Minors generally cannot own property and financial accounts outright. As a result, if you die before your child turns 18, the court appoints a guardian (not automatically the surviving parent) to manage these assets until the minor turns 18, at which point the minor has full access and control. In other words: bureaucracy, court fees, and 18-year-olds flush with money may result! Furthermore, if you leave qualified assets such as 401(k)s and traditional IRA(s) outright to minors, higher taxes may also result.

So, instead, do these 2 things:

1.  Fix Your Will.  Include language in your Will authorizing a trust, and then,

2.  Fix your Beneficiary Designations. Reference that language on your assets’ beneficiary designation forms.

Don’t worry- this is neither complex nor expensive.  

What the trust does:

If both parents die when the child is young, the trust can help:

•  Protect your children in a catastrophic event. 
•  Ensure your children’s inheritance money is used wisely— i.e. on college, not parties.
•  Avoid court intervention.  
•  State who you want to be your child’s guardian.  Otherwise, grandparents are generally the default if both parents die.

You’ll have a choice between 2 types of trusts:

1.   Children's Trust

For most parents, I recommend a children's trust, which is flexible and inexpensive.

2.   UTMA Trust

For most other situations, I recommend a trust created under the Uniform Transfer to Minors Act (UTMA); it’s less flexible and customizable, but it is simple and generally included in your will at no extra cost. 

The Bottom Line:

With a bit of effort and minimal cost (you needed that Will done anyway, right?), you can avoid the legal and tax pitfalls that often result from unintentionally problematic designations on your financial accounts and insurance policies.  

One final thing about financial accounts…

Finally, when you check your bank and brokerage accounts that are held jointly, look at how they are titled— Tenancy in Common (TiC) or Joint Tenancy with Rights of Survivorship (JTWRS).  This really matters! If any of the accounts are held as JTWRS, the other person listed as account holder gets the entire account at your death, regardless of what you put in your Will. Make sure that this matches your intention for those assets.

Alerian Hall is an estate planning attorney in Seattle, Washington and is of counsel to Insight Law.  Alerian Hall’s financial expertise (she was previously a financial advisor) enables her to provide a truly comprehensive and tailored estate plans for her clients.  Insight Law is a tax planning firm with 4 locations in the greater Seattle area. Visit insightlawfirm.com to learn more and to schedule an appointment.

 This article is for general informational purposes only and does not constitute legal advice.

Author: Alerian Hall

www.insightlawfirm.com

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