May 2022

Washington State residents without a valid will may anticipate the probate court distributing their net assets under the Evergreen State’s intestate succession laws. Your “net” estate consists of the assets remaining after your estate pays off your debts, according to the Washington State Legislature. Your estate may also pay allowances, probate (or administration) expenses and your final taxes. After settling financial matters, your surviving spouse or registered domestic partner may take 100% ownership of your community property, as noted by Washington state statute RCW 11.04.015 . If you own separate property, your surviving spouse or partner may take half. The court distributes the other half to your surviving children. Who takes my property if I do not have a spouse or partner? A Washington State probate court may distribute your assets to your surviving children if you do not leave behind a surviving spouse or domestic partner. Your property may divide equally between your children if you have more than one child. Both biological and adopted children may share in your estate. Stepchildren and foster kids, however, may not inherit your assets. When dying without a spouse, partner or child, your surviving parents may inherit your entire estate. If your parents predeceased you, the court may distribute assets evenly to your surviving siblings and their descendants. Without parents and siblings, the court may find your grandparents. If they also predeceased you, the court may locate surviving aunts and uncles and their descendants. How may I leave assets to my heirs and bypass probate? To bypass probate, you may create a living trust or add beneficiaries to your financial accounts. Individual retirement accounts, 401(k)s and checking accounts generally allow payable-on-death benefits.  Without setting up payable-on-death accounts or trusts, Washington State requires the probate process when leaving behind property titled in your name. The court may oversee the transfer of your property even if you die with no will.

When you work on your Washington estate plan, you may cross a will off your to-do list first, and this is wise. A will is an important part of any estate plan and gives you a chance to say where you want your assets to go once you die. However, there are limits to what you might be able to do with a will. In some cases, it may benefit you and your beneficiaries if you establish a trust. Kiplinger reports that, while different types of trusts exist, these financial agreements allow you to do many different things that a will does not allow you to do. Some of the things you might be able to do through creating a trust appear below. Shelter assets from estate taxes Washington has an estate tax, and this tax may cut into how much of your estate your beneficiaries are able to collect. If your estate is valuable enough, you have to pay estate taxes. However, by moving some of your assets into a trust, you are transferring them out of your direct ownership. In doing so, you are reducing the size of your estate, and you may, too, be avoiding the estate tax or reducing your estate tax burden. Protect beneficiaries’ public benefits eligibility If you are planning to leave assets or money behind to someone who uses Medicaid, Social Security Disability Insurance or another type of benefits program where they have to prove financial need, leaving them assets in a will may hurt, rather than help them. Leaving assets to these individuals in trusts lets you get around this and not hurt their public benefits eligibility. These are two examples of the many important things you may be able to do through creating a trust.

Perhaps you have a disabled teenage son who was the victim of a serious car accident. You are considering setting up a trust to hold the financial compensation he is due to receive. According to federal and state law, those who qualify for SSI and some Medicaid programs cannot keep more than $2,000 in their own name. Therefore, the compensation your son expects to receive as an accident settlement can go into a trust. There are three main types of trusts for you to look into. You can establish any one of these without affecting the Supplemental Security Income (SSI) your son receives. First-party trust (individual) One kind of special needs trust is a first-party trust, which can hold the accident proceeds without affecting your son’s SSI. Your son can use funds from the trust throughout his lifetime. When he dies, the remainder will reimburse the government for his medical costs paid by Medicaid. The remaining funds, if any, can be distributed to family members or as your son directs. First-party trust (pooled) Charitable organizations set up pooled trusts. Beneficiaries pool their resources , which are then invested but maintain their own separate accounts with funds used for their individual needs. If you choose a pooled trust for the benefit of your son, then after his death the funds remaining in his account will reimburse the government for his care received through Medicaid. Alternatively, all or a portion can be directed to the nonprofit organization that managed the trust. Anything remaining can be distributed to family members or others as your son chooses. Third-party trust Family members often favor the third-party trust. This is a receptacle for any kind of asset that belongs to the family. Common assets that fund a third-party trust include retirement plans, life insurance, stocks and bonds, and even a house. Once again, funds are used for the lifetime of your son. However, after his death, any funds remaining can either pass to other family members or to a charity. Unlike first-party trusts, third-party trusts are not required to reimburse Medicaid. With legal guidance, you can learn more about this and the other special needs trusts to determine which best suits your son’s circumstances.

Memory loss is something that often comes with growing older. Unfortunately, there is often not much that doctors can do to reverse this phenomenon. Therefore, the goal for most adult children should be to help their parents remain as comfortable as possible. Some signs of dementia include asking similar questions over and over again, frequently losing or misplacing items, and drawing a blank while having an ordinary conversation. Here are some ways to help aging parents deal with memory loss. Be a support system Let your aging parent know that you are there if they need help with any tasks around the house, such as cooking, balancing a checkbook, or doing laundry. People are often reluctant to allow others to help them, as they see it as a sign that they are losing their independence. However, being supportive in a non-judgmental way can help people feel comfortable in asking for assistance. Be patient People who are experiencing memory loss sometimes forget common words or tell the same story repeatedly. Remember that this is not done on purpose or to annoy you, and being respectful and patient goes a long way towards maintaining your relationship. Encourage familiar activities  People with dementia often take comfort in the familiar. Avoid activities such as traveling to new places and meeting large groups of new people. Stick to visiting places that the aging person is familiar with. Knowing how to support an aging parent who is experiencing memory loss will help keep them comfortable in their golden years.