Tacoma Washington Elder Law Blog

Washington fans of actress Carrie Fisher may be surprised to learn she was diligent about her estate plans. There have been multiple media reports of other well-known celebrities who have failed to take such steps prior to their deaths. According to probate court papers filed by Fisher's estate executor, her assets are valued at just under $7 million. The executor is seeking a final distribution of her assets.

In the document regarding Fisher's estate, the executor states all administration-related expenses have been paid to date. He also states he has performed his duties as stipulated by Fisher's estate documents. The will the actress had, which was created in early 2016, will become part of a trust she established, officially known as the Carrie Fisher Living Trust. The executor will also serve as the trustee. The beneficiary of Fisher's trust is her daughter, who also has a career in acting.

When Washington residents think about planning for the future and distributing their assets, they may consider making a will or even a trust, envisioning that this will make sure their wishes are carried out. However, what many people do not realize is that some of the largest and most important assets a person may have are often not controlled by a will at all, because they do not go through probate. Life insurance policies, retirement plans and investment funds often have a pay-on-death beneficiary, who will receive the payout after the original owner passes away.

In many cases, people have insurance policies or retirement investments through their employers, and they may have signed beneficiary forms as part of a large stack of paperwork when they were first hired. This may mean that their wishes are not currently reflected in those beneficiary details; in some cases, people may have named their now-deceased parents as beneficiaries when they first started a job, while others named a now-former spouse. For many people with high-powered corporate jobs, a significant portion of their estates may pass through these kind of beneficiary designations rather than through the probate courts.

Tacoma residents who are creating an estate plan might wonder whether they should use a trust and if so, what kind. A living trust is one of the most flexible because it leaves the grantor in control of the assets. The person can move assets in or out of the trust, change beneficiaries or even cancel the trust.

People who have a loved one with special needs who gets benefits from the government can set up a special needs trust. This type of trust can help support the person without endangering the person's access to the government benefits. Another type of trust is an incentive trust. This puts certain requirements on the beneficiaries. For example, the beneficiary might be required to complete a college education before getting distributions. With a charitable trust, distributions can be made to charity and to the trust owner or other beneficiaries.

There are several points throughout a person's life when it may be a good idea to update an estate plan. A person who turns 18 should, at minimum, have powers of attorney that name people to make healthcare decisions and take over finances if the person is incapacitated by illness or injury.

Most people revise the estate plan when they get married. The plan may need another revision if they have a child. The estate plan might need to name the surviving spouse as the full beneficiary. Otherwise, minor children may inherit a portion of the estate. The surviving spouse might then have to go to court and get approval as a guardian to manage the children's inheritance until they turn 18. An estate plan should also name a guardian for minor children in case both parents die at the same time.