Estate Planning/Probate

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Attorneys Practicing This Area of Law: Click below to see attorney's bio.

• Daniel G. Marsh
• Michael P. Higgins
• Michael G. Beaty
• Jeffrey J. Hatch

What changes have been made in the federal estate tax rates and credits?

What is a Community Property Agreement?

Why do I need a Community Property Agreement?

If I don't have a large estate do I still need a will? A single person with an estate greater than $2,000,000, or a married couple with greater than $4,000,000 in assets should seek advice on planning that will help avoid estate taxes. Most of us do not have estates that large. For "the rest of us," a will is still crucial to proper estate planning. Most importantly, probating a will is almost always more simple and more precise than trying to work through an estate that has no will. This, of course, means less court and attorney expenses.

But a will can also address more personal concerns, such as:

• Who Should Manage Your Affairs After Death?
  Following a death, there may be bills to be paid, real or personal property to be sold or distributed, debts to be collected, accounts to close, people to notify of the death, etc. A will appoints the personal representative to represent the estate, and avoids disagreements among family members as to who should act in this capacity.
• For parents with minor children, a will is extremely important!
  In the will, the parents name the guardian and the alternate guardian if both parents are deceased. Further, the will can direct exactly how the family's assets are to be held, invested, and spent for the children. For your children's welfare and to avoid family disputes between in-laws, it is best to use a will to clarify your wishes for your children's futures.
• Planning Your Funeral.
  Decisions about burial or cremation, a large ceremony or a private goodbyes, the epitaph and eulogy, and whether to donate to medical or scientific institutions are highly personal choices. A will can incorporate your desires and help family members deal with these difficult tasks. This helps to avoid family disputes about how to properly remember a loved one.
• Special Possessions.
  Regardless of the size of an estate, most people have sentimental items of great worth to a certain friend or relative. Without a will, all personal possessions may be given to family members in a certain order - to the spouse, to the children if there is no spouse, to the parents if there are no children or spouse, to siblings if there are no spouse, children or parents, etc. A will can direct that property be given exactly as you wish.
• Your Favorite Charity or Church.
  Gifts of money or property can be made to one's favorite charity in a will - whether it be money to a church or blankets and coats to Salvation Army or Red Cross.
• Disinheritance.
  It is a very difficult choice to decide to disinherit a family member. A court will rarely acknowledge a decision to disinherit if that decision is not properly set forth in a will. It is best to consult with an attorney to determine whether a disinheritance clause is correct in its form and as clearly stated as possible.
• Limitations on Inheritance.
  Use a will to limit the flow of money to a certain heir. You may be faced with the reality that, upon your death, a young adult with poor ability to manage money would squander an inheritance. A will can include provisions to only release certain sums when the heir reaches a certain age, obtains a certain degree, etc. To some extent, the will can avoid misuse of the inheritance and help the heir to use funds more wisely.
• What About Fido?
  Some people overlook a matter close to them - planning for pet care after their deaths. More and more, people include provisions to assure that a certain friend will properly arrange for a pet's new home and work with an adoption or rescue organization.

A thoroughly drafted Will does much more than direct how the estate - the money and property - is disbursed. In drafting your Will, don't hesitate to ask your attorney about anything that is on your mind which you feel would be left unattended. More often than not, you will be able to create a solution that leaves you at peace with the issue and will help your personal representative take care of your estate more easily.

I have a current Will. Is there anything else I need?
An updated Will may provide adequate security for your family and assets in case of your death but will not solve problems if you would become incapacitated and cannot make your own decisions. Also, there may be better ways to avoid estate taxes and to easily pass assets to your spouse or others through trusts or businesses like limited liability companies. A Marsh, Higgins, Beaty & Hatch attorney can provide you with a variety of options to assure that you and your estate are protected.

• Powers of Attorney
• Health Care Directives
• Community Property Agreements
• Trusts
• Business Options

What changes have been made in the federal estate tax rates and credits?
As of January 1, 2004, the federal estate tax credit shelters estates up to two million dollars from the federal estate tax. Also the top tax rate is 45%. The federal estate tax credit will continue to rise, and in 2010 the federal estate tax is repealed but in 2011 the federal estate tax is again imposed on estates in excess of one million dollars as follows:

FEDERAL ESTATE TAXES

Because of the complexity of the federal estate tax changes everyone with a large estate should consult with their attorney and CPA concerning the impact of such changes. 

For information about the Washington State Tax and Transfer Act passed in 2005, email a request for a free estate planning, wills and trust brochure to dan_marsh@marsh_higgins.com

What is a Community Property Agreement?
A Community Property Agreement is an effective estate planning document in nontaxable estates which defines the status of property of both spouses during marriage and its disposition upon the death of either spouse. The agreement operates to vest title to the community property as the sole and separate property of the surviving spouse. A Community Property Agreement acts as a "will substitute" in much the same manner as a Joint Tenancy with Right of Survivorship Account, meaning, all property automatically goes to the surviving spouse when one spouse dies. This Agreement consequently avoids the normal perils of probate. However, property within the agreement may not be devised or bequeathed by either spouse through a will to anyone other than the spouse.

Why do I need a Community Property Agreement?
People decide to enter into a Community Property Agreement with their respective spouse for any number of reasons; (1) First, a Community Property Agreement allows "[t]he surviving spouse to be entitled to take the property covered by the agreement without going through any court proceedings to probate the contract or to administer the decedent's property." WASHINGTON PRACTICE: Probate 29.4 (2001); (2) A Community Property Agreement may also clarify any questions regarding the status of property as being either separate or community in nature. This idea is especially important when considering titles to real property owned by the marital community. After the death of the first spouse, titles to all real property owned by the marital community will become solely owned by the surviving spouse when there is a community property agreement.

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