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.
Beneficiary designations can be an important part of an estate plan for people in Washington, but they are often mishandled. Retirement accounts, annuities and life insurance are among the assets that are passed using a beneficiary designation.
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.