Family Conversations about Legal Concerns

Jonathan A. Sprouffske, JD

Connolly Tacon & Meserve, P.S.

OlyLaw.com

(360) 943-6747

Topics to be Covered

What is Estate Planning?Talking with Family about Estate PlanningHealth Care DirectivesDurable Powers of AttorneyCommunity Property AgreementsWillsIntestacyProbateProbate Assets vs. Non-Probate AssetsLiving Trusts vs. Testamentary TrustsEstate Taxes

What is Estate Planning

• Not only for the wealthy.

• Provides for you during your lifetime.

• Expresses your wishes for end of life decisions.

• Provides for others after your death.

“The Talk”

• Every family is different.

• Most importantly be sincere.

• Have a proposal.

• Make it personal.

• Communicate the values that are important to you.

• Follow it up with a letter.

Health Care Directives

• Living Will, Do Not Resuscitate Orders, Health Care Directives.

• Provides directives to physicians or emergency personnel regarding health care treatment.

• If over 18, with “serious health conditions” consider a POLST form. (Physician Orders for Life-Sustaining Treatment)

Durable Powers of Attorney

• Financial Decisions

• Healthcare Decisions

• May not be able to access personal health information from a medical provider without HIPAA language.

• Valid only during your lifetime.

Community Property Agreement

• An agreement between a married couple giving all of the assets to the surviving spouse.

• Purpose is to assist in avoiding taxes and probate.

• Probate might still be needed upon the death of both spouses.

• Not appropriate for everyone.

Intestacy

• Dying without a will.

• Distribution is done according to state law.

• Probate is more expensive.

• The people inheriting might not be who you would like them to be.

• Unable to plan for estate taxes.

Estate Taxes

• Are subject to change.

• Current WA estate tax exemption is $2,000,000.

• Current federal estate tax exemption is $5,000,000.

• Doubled for married couple.

Wills

• Specifies who you want to inherit.

• Governed by State Law.

• Must be properly executed.

• Specific recording requirements.

Probate

• Transferring assets

• Paying Creditors

• Probate Process– Probate Open– Notice to Creditors and Heirs– Creditor’s Claim Period– Notice of Completion – File Final Tax Return

Non-Probate Assets

• Beneficiary Designations

• Transfer on Death

• Payable on Death

• Joint Tenancy with Right of Survivorship

Living Trusts

• Main Purpose – Avoid Probate

• Beware of Scams

• Costs

• Upkeep

• Still may need an attorney’s assistance upon death.

Testamentary Trust

• Built into a will.

• Designed to take effect after your death.

• Examples:– Disclaimer Trust– Trust for Children or Grandchildren– Special Needs Trust

Questions?