Tacoma Washington Elder Law Blog

It is common for high net worth individuals to think about their assets when it comes to estate planning. While these assets are important, there are other things that need to be looked at as well. Individual needs to consider the legacy they wish to leave behind.

It is never too soon for a couple and their adult children to start discussing a legacy plan. This should begin early. These conversations typically involve accountants, estate planning attorneys and a wealth adviser. The conversations would involve the family's financial plan and their non-financial goals. Their non-financial goals would relate to what they would like their family to accomplish in the generations after them. The plan needs to be written out in order to be legally put into effect when it is needed.

As laws change, traditional estate planning advice might not always be appropriate for some Washington residents. For example, they might want to consider whether family members would benefit from an inherited Roth, which may pay out distributions for years.

Changes in the estate tax exemption may require changes in the estate plan. The exemption has increased to $11.4 million, and this could mean that an estate plan that was designed to avoid estate tax may no longer be necessary. However, people should be aware that in 2025, the exemption will revert back to $5.5 million. Congress could make it even lower. Furthermore, there could be income tax on retirement accounts, and this should be accounted for as part of overall estate planning. One option is to make a charity a beneficiary since it would not be required to pay the tax. Some people who purchased life insurance specifically to cover estate tax have been surrendering it, but experts say they should consider a life settlement transaction instead since this can be a valuable asset.

When people in Washington have kids, they may start thinking about estate planning. Children inspire many people to make a will in order to help ensure the children will be provided for in the future. Still, many people choose not to have kids and live fulfilling lives. They may have even more time to dedicate to their careers and accumulate significant assets. People who are child-free may think that they don't need to worry about estate planning. However, most child-free people still have strong feelings about what they want to happen to their belongings after they pass away.

Making a will, trust or other estate documents can help child-free people to plan for the future. Making out a will can be especially important for long-term couples who choose not to marry. A partner may not be entitled to any belongings under state intestate provisions if there is no will leaving belongings to that person. Around 64% of people don't have a will, but it can be important for those who want to make sure their assets are directed correctly.

Revocable living trusts are a good estate planning option for people here in Washington who are concerned about how their assets will be passed along if they are incapacitated by illness and unable to manage their own affairs.

A living trust enables the grantor to control their assets during the time they are alive and healthy, during a time of possible incapacitation and after their death. Some grantors manage their own trusts or work with an estate planning attorney.