Law Office of Caroline R. Suissa-Edmiston, LL.M., LLC

WHAT IS ESTATE PLANNING AND DO I NEED IT?

Estate Planning is making a Will along with what are called ancillary documents.  Ancillary documents would be a Power of Attorney for Finances, a Power of Attorney for Health Care and an Advanced Health Care Directive (also known as a "living will").  These documents all together would constitute an Estate Plan.  You do not have to have a large estate to have an Estate Plan.  It just means that YOU do the planning, as opposed to doing nothing and having the state determine where your assets should go, and who may make decisions on your behalf should you become incapacitated.

ESTATE PLANNING: MARRIED COUPLES

One of the advantages to being married is that you may pass an estate of unlimited value to your spouse at death with no unfavorable tax consequences. When that second spouse dies, though, there may be some heavy taxes that cause your children to receive far less than they should. Know that is possible and prepare for it.

Be aware of what counts as an estate asset for tax purposes when you die. Everything you own or had the power to transfer, including the face value of life insurance policies and the current value of all your retirement plans, is included in your estate.

There are estate planning tax vehicles available to the married couple which when used correctly can reduce or even eliminate any estate taxes.

ESTATE PLANNING POST-DISSOLUTION

After you have a final decree of dissolution, what do you do about your estate plan? You need to be aware of what has happened to your assets, how they are now titled, and how you can give away what used to be community property.

The new will should address the manner in which assets are going to be held for any minor children. Generally, the testator should consider naming a third party to act as the trustee of such bequest until the child attains a specified age. This arrangement will protect the assets from the reach of the child's other parent.

Additionally, a new will should name new guardians of any minor children. You need to consider what will happen if your ex-spouse pre-deceases you.

As a cautionary note: it is vital that you change all non-probate assets to reflect any changes in beneficiary designation.

ESTATE PLANNING: NON-MARRIED COUPLES/REGISTERED DOMESTIC PARTNERS

Today’s living arrangements involve many couples, of the same or opposite gender, who live together in a committed relationship similar to marriage. Many of these couples, for a variety of reasons, either cannot or choose not to marry. A number of these couples have significant wealth and need a special point of view taken in their estate planning.

There are several tax planning opportunities available to unmarried couples that are not available to married couples.

Washington has a body of law (Meretricious Relationships) which applies to both opposite sex and same sex couples. This is vitally important for couples to be aware of as it applies Community Property tenets to non-married couples.

Those couples who have registered as Domestic Partners with the State of Washington have special rights now afforded to them, and need to be aware of community property laws to the same extent as married couples.

This office focuses on the needs and rights of unmarried couples and will guide you to understand your rights and to develop a plan that works best for you.

ESTATE PLANNING: BLENDED FAMILIES

There are certain issues that are special to blended families. How to take care of children from a previous marriage while still making provisions for a new spouse and/or children of the current marriage.

It is also important to be aware of what obligations you have under your dissolution decree, and to incorporate those obligations into your estate plan.

We will work with you to help you to understand the best way to provide for all of your loved ones.