Answers to some questions I am frequently asked.
Some of these questions are about estate planning generally, while some are about my firm in particular. If your question is not answered below, feel free to contact me.
What is estate planning?
Everyone has an "estate." Your estate includes your personal property, your real property, your bank accounts, your brokerage accounts, and your retirement plans, and any other forms of property you may have - pets, perhaps, or intellectual property such as copyrights. When you die, your property passes on. In part, creating an "estate plan" by executing a Will (and in some cases, a living trust) is a process of setting out who should get that property, when they should get it, and how they should get it. You can include charitable giving in your estate plan, if you would like to do so. You also decide who will serve as executor (also called "personal representative") of your estate. This person will gather and distribute your assets according to the terms of your Will.
But estate planning is much more than deciding the fate of your property. For example, as part of a comprehensive estate plan, you can also set out
▪ who you would like to act as guardian for your minor children;
▪ how your property can be expended on your children's behalf and when they will receive it outright;
▪ who will care for your pets;
▪ who will act on your own behalf to make property management and healthcare decisions for you, during your lifetime, if for any reason (such as illness, mental incapacity, or absence) you are unable to do so;
▪ what your wishes are regarding end-of-life care by using a living will ("healthcare directive").
You can name alternates in case your preferred agents cannot or decline to act. In short, by creating a well-thought out estate plan, you can minimize uncertainty and provide direction regarding your wishes to those who survive you.
But estate planning is much more than deciding the fate of your property. For example, as part of a comprehensive estate plan, you can also set out
▪ who you would like to act as guardian for your minor children;
▪ how your property can be expended on your children's behalf and when they will receive it outright;
▪ who will care for your pets;
▪ who will act on your own behalf to make property management and healthcare decisions for you, during your lifetime, if for any reason (such as illness, mental incapacity, or absence) you are unable to do so;
▪ what your wishes are regarding end-of-life care by using a living will ("healthcare directive").
You can name alternates in case your preferred agents cannot or decline to act. In short, by creating a well-thought out estate plan, you can minimize uncertainty and provide direction regarding your wishes to those who survive you.
How much will it cost to get an estate plan?
It depends - I know this answer can be frustrating! The kind of estate plan you need will be a function of your goals, your family, and the size of your estate. There are as many types of estate plans as there are individuals and families. It is impossible to have a "one price fits all" model that results in a plan that will fit your unique circumstances. Attorneys typically charge for estate planning in one of two ways: hourly or by flat fee. I prefer the flat fee model for two reasons. First, it gives clients a concrete number to consider as they choose a legal advisor. Second, it frees clients from concern about charges for the many necessary but usually short telephone calls and emails that are part of the planning process, which I hope leads to freer interactions between the lawyer and the client.
To make my fee quote, I ask potential clients for some basic information: a rough estimate of the size of their estate (including life insurance) a basic outline of their dispositive plan (who should get their assets and whether they intend to set up trusts), and any special considerations (such as beneficiaries with special needs, prior marriages, children from prior marriages, or other circumstances). With this information, I can give most potential clients a flat fee quote for an estate plan package (generally, this includes wills, living wills, durable powers of attorney, and beneficiary designation forms as appropriate). In some circumstances, I may instead charge an hourly fee.
To make my fee quote, I ask potential clients for some basic information: a rough estimate of the size of their estate (including life insurance) a basic outline of their dispositive plan (who should get their assets and whether they intend to set up trusts), and any special considerations (such as beneficiaries with special needs, prior marriages, children from prior marriages, or other circumstances). With this information, I can give most potential clients a flat fee quote for an estate plan package (generally, this includes wills, living wills, durable powers of attorney, and beneficiary designation forms as appropriate). In some circumstances, I may instead charge an hourly fee.
What is your process, and how long does it take to get an estate plan in place?
Generally, it takes a few weeks to a few months to set up a basic estate plan. First, we briefly discuss your situation and goals so that I can give you a fee quote. Then, you complete a worksheet and we meet for 1-3 hours to discuss your needs. I spend a few days to weeks to provide a first set of drafts, during which time you would make final decisions on various planning-related issues. You review the first drafts, and respond with comments and questions. I create a second (and often though not always final) set of drafts. When you are satisfied that your plan meets your needs, we meet so that you can execute your documents. If you have a very immediate need (for example, if you are going into surgery and need a living will and medical power of attorney drawn up quickly), I can try to accommodate such circumstances as well.
I cannot afford estate planning. Can you help me pro bono?
Estate planning work is very important, even for people of limited means. In many cases, the most important parts of an estate plan for a family can be the nomination of guardians or the execution of durable powers of attorney and living wills. If you cannot afford estate planning, I encourage you to contact the King County Bar Association's pro bono services program for help getting a referral. I provide pro bono assistance to clients through this program, but do not accept pro bono clients directly.
The estate tax exemption amount is so high, I won't ever have to pay estate tax. Why do I need an estate plan?
For most people, minimizing estate taxes is not the most important planning objective. Rather, most people's primary objectives are to ensure that their minor children are provided for after their deaths, to identify someone who can make personal and property decisions for them in the event that they cannot make those decisions personally, and to ensure that their surviving loved ones have the least difficulty possible in administering their estates. These purposes persist regardless of the state of the estate tax at any particular time. For most of my clients, significant estate tax issues are not likely to arise. Their planning is focused on meeting these and similar family- and care-oriented objectives.
As far as the estate tax goes, Washington state and the federal government both impose an estate tax. The federal estate tax exemption (that is, the amount an individual can give away without paying an estate tax) was recently set at $5 million, indexed to inflation. The federal exemption comes with a concept called "portability," which (with certain conditions) allows the surviving spouse to use the remainder of his or her deceased spouse's unused exemption amount, when the surviving spouse later dies. However, Washington state imposes taxes on estates greater than $2 million. And although these numbers seem large, remember that your taxable estate includes life insurance, retirement accounts, real estate, and other property you own - including money you may inherit before your death. With proper planning, a married couple can have a flexible estate plan that can be used to shelter twice the individual exemption amount from estate tax, protecting the money for future generations.
As far as the estate tax goes, Washington state and the federal government both impose an estate tax. The federal estate tax exemption (that is, the amount an individual can give away without paying an estate tax) was recently set at $5 million, indexed to inflation. The federal exemption comes with a concept called "portability," which (with certain conditions) allows the surviving spouse to use the remainder of his or her deceased spouse's unused exemption amount, when the surviving spouse later dies. However, Washington state imposes taxes on estates greater than $2 million. And although these numbers seem large, remember that your taxable estate includes life insurance, retirement accounts, real estate, and other property you own - including money you may inherit before your death. With proper planning, a married couple can have a flexible estate plan that can be used to shelter twice the individual exemption amount from estate tax, protecting the money for future generations.
What happens if I don't have an estate plan?
Because everyone has an estate, but not everyone has prepared an estate plan, state laws set out a "default" process to determine what happens to your property after you die. In Washington, depending on your marital status and which of your relatives survive you, your property will be distributed to one or more of your spouse, children, grandchildren, parents, brothers or sisters, nieces or nephews, grandparents, or ultimately if there are no heirs, to the state of Washington. Very few people find that the default scheme is how they would like their property distributed.
The Court would decide who would act as guardians for minor children, if no other parent or guardian remains. If you were to become incapacitated during your lifetime, and had not executed a valid power of attorney document, a guardianship would be needed to allow someone else to make decisions for you. The guardianship process is expensive and time-consuming.
The Court would decide who would act as guardians for minor children, if no other parent or guardian remains. If you were to become incapacitated during your lifetime, and had not executed a valid power of attorney document, a guardianship would be needed to allow someone else to make decisions for you. The guardianship process is expensive and time-consuming.
What if I don't want a whole estate plan, but just need one document, like a Living Will?
I'm happy to work with you on whatever your needs are. I'll discuss the pros and cons of your intentions with you, so you can decide how to proceed.
Can you help me with litigation or a will contest?
Although I have experience in trusts and estates litigation, I don't personally handle such matters. I know some excellent attorneys who do so. I will be happy to talk with you and try to find you a referral to appropriate counsel.
