October 2019

Washington State residents who have been married and divorced and who then meet a new partner to whom they want to get married should feel excited about having another chance at a happy and positive lifelong relationship. Many things can contribute to making a marriage work and for a blended family, one of those things may well be a solid estate plan.  As explained by Forbes, without an estate plan in place, it is common for a surviving spouse to inherit assets. There would be nothing to require that person to pass on anything to the deceased person’s children, making it possible that the kids could be disinherited even if that is not what their biological parent wanted. Fortunately, there are many robust estate planning tools available to avoid this type of situation. Fidelity Investments recommends that couples have candid conversations early on about their wishes and their estate assets and debts. The conversations should cover a range of topics including how to balance providing for each other while leaving something for their respective children. If the couple is to have new children together, that adds yet another layer to the planning conversations. This should include guardianship for any minor children as well as what assets each child should receive and when. It is also important to take note of any obligations to a former spouse that may be legally required per a divorce decree. For example, one person may be obligated to name a former spouse as the beneficiary on a life insurance policy or a retirement policy as part of their property division agreement.

In Washington state, people who are 65 and older may qualify for Medicaid to cover the costs of their nursing home care. This may be very important, as the average cost of a room in a nursing home may be quite expensive.  In fact, according to SeniorLiving.org, the average monthly cost of a semiprivate room in a Washington nursing home is $8,669, and the average private room costs $9,718. Even those people with considerable retirement savings and investments are not likely to be able to afford this continuing care for long. The American Council on Aging explains how a person may qualify for Medicaid assistance to pay for the costs of living in a nursing home in Washington. (All dollar amounts are relevant for 2019.) Income In the U.S., the meaning of income varies depending on the circumstances. For example, income for child support purposes is different from what is considered income when it comes to qualifying for Social Security Disability benefits. When it comes to Medicaid, every type of income counts. Wages, alimony, Supplemental Security Income, veterans benefits, retirement account withdrawals, investments and money from any other source all contribute to a person’s overall income. Assets The senior’s assets also affect eligibility. Unlike income, some assets are exempt. These include the following: Personal property Primary residence (if valued under $585,000) Household furnishings Vehicle Irrevocable burial trust Nonexempt assets include investments, savings and checking accounts, stocks, bonds, cash and real estate that is not the primary residence. Limits The income limit changes based on whether the senior is single or married, and if married, whether one or both spouses are moving into the nursing home. If the senior is single, the income limit is $2,313/month and the asset limit is $2,000. Married seniors who are both applying have a combined income limit of $4,626/month and a combined asset limit of $3,000. If only one spouse is applying, the nonapplicant spouse may keep up to $126,420 in assets, and the applicant spouse has the same limits as a single applicant.

In Washington state, people who are 65 and older may qualify for Medicaid to cover the costs of their nursing home care. This may be very important, as the average cost of a room in a nursing home may be quite expensive.  In fact, according to SeniorLiving.org, the average monthly cost of a semiprivate room in a Washington nursing home is $8,669, and the average private room costs $9,718. Even those people with considerable retirement savings and investments are not likely to be able to afford this continuing care for long. The American Council on Aging explains how a person may qualify for Medicaid assistance to pay for the costs of living in a nursing home in Washington. (All dollar amounts are relevant for 2019.) Income In the U.S., the meaning of income varies depending on the circumstances. For example, income for child support purposes is different from what is considered income when it comes to qualifying for Social Security Disability benefits. When it comes to Medicaid, every type of income counts. Wages, alimony, Supplemental Security Income, veterans benefits, retirement account withdrawals, investments and money from any other source all contribute to a person’s overall income. Assets The senior’s assets also affect eligibility. Unlike income, some assets are exempt. These include the following: Personal property Primary residence (if valued under $585,000) Household furnishings Vehicle Irrevocable burial trust Nonexempt assets include investments, savings and checking accounts, stocks, bonds, cash and real estate that is not the primary residence. Limits The income limit changes based on whether the senior is single or married, and if married, whether one or both spouses are moving into the nursing home. If the senior is single, the income limit is $2,313/month and the asset limit is $2,000. Married seniors who are both applying have a combined income limit of $4,626/month and a combined asset limit of $3,000. If only one spouse is applying, the nonapplicant spouse may keep up to $126,420 in assets, and the applicant spouse has the same limits as a single applicant.

Each state has its own laws about wills. For example, in some states, a will may be handwritten, while in others, it is not valid. Some states require witness signatures, and others do not. The Revised Code of Washington Chapter 11.12 defines what makes a will valid in the state. A valid will Only an adult (at least 18 years old) may create a will. There must be at least two witnesses of the will, and they may not have any interest in the will. Under most instances, a will must be written, but cannot be handwritten. A handwritten, or holographic, will is not valid in Washington. Nuncupative wills A nuncupative will is an oral will , and it can only be in effect if the testator’s personal property is no more than $1,000. It cannot designate real estate distribution. A U.S. servicemember or someone employed on a Merchant Marine vessel can use a nuncupative will to dispose of personal property and wages. Two witnesses must be able to verify that the testator made the will in front of them and at the time of the testator’s last sickness. Within six months of the testator speaking his or her last wishes, someone must write the will, and proof offered. The surviving spouse and heirs-at-law must receive a citation so that they can contest the will if they so choose. Revoked wills There are a number of reasons why a person may want to write a new will and revoke the old one, or to revoke some portion of it. In Washington, the testator may revoke the old by creating a new one that says specifically that it replaces the original or replaces it through the changes made.  A testator may revoke a will through destroying it, too, whether that be through burning, tearing or otherwise obliterating it. The testator may have someone else do it for him or her as long as it is done in his or her presence and there are two witnesses who can attest to the facts of its destruction. If the testator revokes the entire will, the codicils also become revoked unless this would not be consistent with the testator’s intentions.