Estate Planning

For families with a loved one who has a disability, understanding how a special needs trust affects Supplemental Security Income (SSI) is necessary. SSI provides essential financial support, and ensuring that other assets do not interfere with it is a top priority. Understanding special needs trusts A s pecial needs trust is a legal arrangement that holds assets for a person with a disability without jeopardizing their eligibility for public benefits like SSI. The trust can pay for a variety of expenses that enhance the individual’s quality of life, such as: Medical care Education Personal items Travel and entertainment Properly setting up a special needs trust ensures that it does not affect the beneficiary’s SSI benefits. Choosing the right type of special needs trust, whether a first-party or third-party trust, is important, as each has different rules and implications for SSI. Protecting SSI benefits SSI is a means-tested program, meaning eligibility depends on the individual’s income and resources. By placing assets in a special needs trust, you can protect these resources from getting counted toward the SSI resource limit. This protection ensures that your loved one can maintain their SSI disability-related benefits while still enjoying a higher quality of life. It is important to ensure that you set up an irrevocable trust, as revocable trusts may still count as resources, potentially affecting SSI eligibility. Ensuring long-term security Establishing a special needs trust is a crucial step in securing your loved one’s financial future. By thoughtfully managing assets, families can prevent complications that might otherwise lead to financial hardship, ensuring that their loved one has support and care in the years ahead.

Creating a will is an important step in planning for the future. A will ensures the distribution of a person’s assets according to their wishes. However, a power of attorney can provide additional protection and clarity. There are three signs that can indicate that it is time to get a power of attorney in place. 1. Health issues are becoming more frequent Chronic illnesses, sudden accidents, or other medical conditions can impair someone’s ability to make decisions. When health issues arise frequently, a trusted individual can help manage personal and financial matters. A power of attorney grants a designated person the authority to make decisions on behalf of the individual if they become unable to do so themselves. 2. There are complex financial affairs Managing finances can become complicated over time. This is especially the case when dealing with investments, property or business interests. A power of attorney allows a designated person to handle financial transactions, pay bills and manage investments. This prevents any disruption in financial management and protects assets from potential mismanagement. 3. Family dynamics are challenging Family relationships can sometimes be difficult to navigate, especially during stressful times. If there are challenging family dynamics, having a power of attorney can help prevent disputes. It provides clear legal authority for one person to act on behalf of another. This can help avoid conflicts among family members about who should make decisions or how to manage affairs. Adding a power of attorney is a practical step, particularly when it comes to end-of-life planning . It ensures that personal and financial matters proceed according to your wishes. Being mindful of these signs can help you better prepare for the future and provide peace of mind for yourself and your loved ones.

Estate planning remains an important yet frequently overlooked conversation within many families. It requires decisions about transferring an individual’s estate after their death, including distributing assets and caring for dependents. Although the topic might feel sensitive and uncomfortable, initiating this discussion with your parents can ensure the honoring of their wishes, reduce potential conflicts among siblings and lessen the stress and confusion associated with managing an estate after a loved one’s passing. This conversation demands tact, respect and understanding, as it addresses not only the logistics of wills and assets but also emotional readiness and family dynamics. Choose the right time and place It is important to look for an appropriate moment to discuss estate planning. Aim for a calm, quiet time without interruptions or time pressures. This conversation deserves everyone’s full attention and should take place in a private, comfortable setting where your parents feel secure and relaxed. Express your intentions clearly When you start the conversation, make sure to clarify that your aim is to support them and ensure respect for their wishes. Emphasize that estate planning brings peace of mind to everyone involved, and assure them of your assistance, not intrusion or control. Listen and offer support Be ready to listen more than you speak. Your parents may share concerns or wishes they have never expressed before. Show empathy and understanding, and suggest your help in navigating the process. Whether this involves researching options, organizing documents or simply discussing their wishes, your involvement can make the process less daunting for them. Address the benefits Highlight the benefits of estate planning, such as preventing complications, ensuring the distribution of assets as per their wishes and protecting the family from potential conflicts. Realizing these positive outcomes can motivate your parents to take action and make the necessary arrangements. With a careful approach, this conversation can strengthen your relationship and ensure peace of mind for everyone involved. 

Acting as a trustee involves understanding the legal basis for you to make certain decisions regarding a trust. This can include selling off property contained in the trust. Without established authority to sell off trust assets, you could end up in probate court if the trust beneficiaries decide you lack the power to conduct any sales of trust property. Trust documents as authorization A trust is a legal arrangement where a trustee manages assets for beneficiaries. The terms of the trust, outlined in trust documents created by the trust creator, provide the rules and instructions you as the trustee must follow. The trust documents give the trustee authorization to manage trust assets, which may include selling some or all of the trust property. The trust instructions should also tell you what to do with the profits, if you are to invest them or distribute them to beneficiaries, among other possibilities. Beneficiary permission If the trust documents grant you explicit powers and even requirements to sell trust assets, you should not need permission from beneficiaries unless the trust states otherwise. Still, having beneficiaries sign off on the property sales could further secure your position and prevent objections later on. Trustees selling to themselves You might also be a beneficiary of the trust. If other family members are beneficiaries, you may seek approval before selling trust assets to avoid conflicts. This can be especially important if you wish to sell trust property to yourself. Since selling trust assets to yourself could be a problematic situation, it may be prudent to examine the trust documents carefully as they might forbid you from selling assets to yourself or to another trust you administer. However, this is less of a problem if you are also the trust creator and placed the property in the trust in the first place.  Managing a trust entails making sure you do not violate your fiduciary duty to trust beneficiaries. Maintaining transparency and avoiding financial decisions that appear to serve your interests above the beneficiaries can keep you from unnecessary litigation.

A trustee is responsible for administering a trust. However, what happens when there is more than one trustee involved? If you are the beneficiary of a trust with multiple trustees, you should know how all the people running your trust manage your assets. Co-trustees are individuals who share the responsibility of managing a trust. Their dynamics can vary depending on the terms of the trust document. Unanimous decision-making In some cases, co-trustees must all act together . Every decision concerning the trust must be a mutual one reached by the trustees. This approach ensures that no single trustee has more power or influence than the others, helping to promote fairness and transparency. It also prevents hasty decisions that may not align with the long-term goals of the trust. Majority vote Alternatively, co-trustees can operate under a majority vote system. In this scenario, a majority of the trustees make the decisions. For example, if there are three co-trustees, a decision would require at least two of them to agree. This system allows for quicker decision-making but can also result in situations where the opinion of a single trustee holds more weight than the others. Unequal power dynamics In some trusts, there might be a lead trustee with more authority and responsibilities than the other trustees. Often, a grantor sets up a trust this way because one trustee possesses the right expertise or experience to make autonomous decisions but still needs the assistance of co-trustees. While having a prominent trustee can streamline decision-making and provide clear leadership, power imbalances might still lead to conflicts among co-trustees. No matter the working relationship, a trustee has a fiduciary relationship with the beneficiaries of the trust, so a breakdown of performance by any trustee could lead to legal problems.  The State of Washington provides a legal framework to resolve trust conflicts and other estate disputes through the Trust and Estate Dispute Resolution Act. While a trust conflict can involve a negotiated settlement, arbitration or mediation, these methods may still consume time and money. Composing a trust document with the proper safeguards, which may include a specific dispute resolution process, may avoid legal trouble between trustees in the first place.

According to CNBC, only about 33 percent of Americans have put together a will, which is typically one of the first steps in starting your estate plan. When you create a will as part of the estate planning process, this may involve naming a legal guardian for your children. The person you select will step in and take care of your minor children if something ever happens to you. If you do not designate a legal guardian, who takes over guardianship of your dependents after your death could become a decision left to the court system. Taking time to choose a guardian for your children when you create your will can provide peace of mind and confidence about the future. Identify your priorities The first part of choosing a guardian involves figuring out your priorities for your children’s care. Consider their needs, values and the lifestyle you would like them to maintain. Think about factors such as education, religion and personal values that you would want the guardian to uphold. Assess potential candidates Next, create a list of people who could assume the role of guardian. These candidates could be family members, close friends or individuals who share your values and are willing to take on the responsibility of guardianship. Consider each person’s stability, maturity and ability to provide a safe and nurturing home life. Account for practical factors Practicality plays a role in who you choose as your children’s legal guardian . Consider the potential guardian’s location, living situation and financial stability. It is important that the guardian can provide an environment to meet your children’s needs without disruption. Remember that circumstances can change over time, so you should regularly review and update your choice of legal guardian. As your children grow and family dynamics shift, you may find it necessary to make adjustments to your initial decision.

Writing a will is one of the most basic components of an estate plan. However, according to a survey by Caring.com, a senior living referral service, nearly two-thirds of U.S. adults do not have a will. What happens to your estate if you die in Washington state without a will? Intestate succession rules If you die without a will in Washington state, the intestate succession rules determine who inherits your estate. Who gets what part of your estate depends on who your surviving relatives are. When you have a spouse If you have a surviving spouse, your spouse will get the largest share of your estate. The exact share depends on whether you have surviving children, grandchildren or parents. If you have no surviving children, grandchildren or parents, your spouse inherits the entire estate; otherwise, your spouse inherits three-fourths of the estate, and your other heirs get an equal share of the remaining estate. When you have children but no spouse If you have children but do not have a surviving spouse, your children will each receive an equal share of your estate. If any of your children have died, their share of the estate goes to their children. When you are unmarried without children If you do not have a surviving spouse, children or grandchildren, your estate passes to your parents. If only one of your parents is living, that parent receives the entire estate. If both parents are alive, then they split your estate equally. Succession rules for siblings and other relatives If you die without any surviving spouse, children, grandchildren or parents, then your estate may pass to your siblings or other surviving relatives. If the state cannot locate any surviving relatives, your estate will pass to the state of Washington.  While the state has a process to distribute your assets if you die without a will, creating a will and taking other estate planning steps provides peace of mind that your estate will pass to who you want it to.

Contemplating end-of-life decisions can be challenging, but it is an important aspect of estate planning. By making these decisions now, you provide a roadmap that guides your loved ones and healthcare providers if you become incapable of expressing your wishes. Explore the end-of-life decisions that your Washington State estate plan should include. This knowledge will help you develop a comprehensive estate plan that reflects your desires and offers peace of mind. Healthcare directives In Washington State, healthcare directives, also known as living wills, allow you to express your wishes regarding medical treatment if you become terminally ill or permanently unconscious. This document outlines the types of care you would like to receive, such as life-sustaining treatment, pain management and organ donation. Durable power of attorney for healthcare A durable power of attorney for healthcare allows you to appoint a trusted person to make medical decisions on your behalf if you cannot make them yourself. This representative should understand your wishes and be willing to carry them out, even in difficult circumstances. Mental health treatment preference declaration Washington State law allows you to create a mental health treatment preference declaration. This document specifies your preferences for mental health treatment if you are unable to make or communicate those decisions yourself. Disposition of remains Your estate plan should include instructions for the disposition of your remains. Whether you prefer burial or cremation, documenting your wishes can spare your loved ones from making these decisions during an emotional time. Life-sustaining treatment forms Life-sustaining treatment forms, such as an advanced health care directive, provide instructions to healthcare professionals about your preferences for life-sustaining treatment.  End-of-life decisions are deeply personal and require careful consideration. Make sure you communicate your plans with your loved ones, so they can prepare to respect and carry out your wishes when the time comes.

Hashing out plans for your death is not something you should take lightly. It involves a lot of thinking and planning to make the experience easier for your loved ones both financially and emotionally. There are some actions you should take after completing your estate planning documents to ensure that the people you love will know what they should do and how they should do it. Getting your loved ones through the difficulty of your death means making sure they can find what they need to move forward. We suggest leaving a letter of instruction to help facilitate a smoother transition during an emotionally hard time. Where is your will? Right after your death, it falls to your family to locate the paperwork they need to begin the probate process. What if they do not know where these items are? When you create your will, you need to decide where to store the original. Not only that, but you should also provide copies to important people so they can refer to it after you die. On these copies, you should indicate where the original is and how they can access it to start probate . What about passwords?  Dying and leaving instructions to find your will is one way to help your family out. But you should also leave updated passwords so they can access accounts to do things, such as turning off unnecessary utilities or finding assets and debts to list for probate court. Again, give this information or the location of it to one or two trusted people so that they may begin getting your affairs in order after your death.