Wills and Trusts
At Andrews & Myers we offer comprehensive Estate Planning including the drafting and execution of Wills and Trusts to fit your unique situation. Call Andrews & Myers today for a free initial consultation (360) 452-4448.
What is a Will?
A Will or Last Will and Testament is a document that tells the court what you would like to do with your property when you pass on. In Washington, you can make a valid will if you are an adult and of sound mind and memory. Your will must be in writing. It must be signed at the end by you.
Your will must also be signed by two witnesses who see you sign the will. You must tell them it's your will. They must verify they saw you sign, and they sign the will at the end and attach their addresses. The witnesses should not receive anything under the will.
In the will you can:
- Distribute your property
- Select a guardian for your minor children
- Name an executor or personal representative to manage the probate of your will and the distribution of your property after your death
You can change your will by making a new will that replaces or revokes the old one or by making an addition to the will, called a codicil. Changes such as a marriage, divorce, birth or adoption of a child, new property ownership or moving to another state should cause you to review your will and consider whether it should be changed to fit your new situation.
An attorney at Andrews & Myers, who does estate planning, can explain the consequences of some of the most basic choices you must make in writing your will. Your lawyer will help you comply with the legal formalities required to have a valid will.
Andrews & Myers encourages individuals to avoid internet or online will generating software as this often results in invalid wills or wills that do not accomplish what the testator actually wants to happen. If you have used this sort of software, Andrews & Myers can review your will to make certain it is valid and appropriate. Contact us for a free initial consultation today (360) 452-4448.
What happens if I die without a Will?
Dying without a will is known as dying intestate. If you die without a will in Washington, your property is divided among members of your family according to the Washington intestacy laws.
If you have a spouse but no children, your spouse inherits the net community and separate property. If you're survived by a spouse and children, your spouse will take the net community assets and half of the net separate property, etc.
Andrews & Myers can help you avoid intestacy by having a simple and inexpensive Will. Call today (360) 452-4448.
Can I Avoid Probate?
If you have significant assets, your heirs may face high estate taxes. Andrews & Myers can help you avoid probate and transfer your assets without depleting them with estate taxes.
In Washington, alternatives to probate include:
- Life insurance policies
- Giving gifts of cash or other assets before death
- Transfer on Death or Rights of Survivorship bank accounts
- Holding property by Joint Tenancy with Right of Survivorship
- Retirement plans and Individual Retirement Accounts
- Revocable living trusts (sometimes called grantor trusts)
What is a Trust?
A trust is a legal agreement that has three parties to it:
- Grantor - The person who creates the trust agreement, also commonly referred to as the Trustor or Settlor.
- Trustee - The person or entity responsible for managing the property that the Grantor decides to title in the name of the trust.
- Beneficiary - The person or entity who is to receive the benefits of the property that is titled in the name of the trust.
Under this type of legal arrangement, the Grantor will transfer ownership of certain assets to the Trustee who will manage the assets for the benefit of the Beneficiary.
What is the difference between Living Trusts and Testamentary Trusts?
When comparing living trusts with testamentary trusts, if the trust has been created to go into effect during the Grantor's lifetime, then it is referred to as an "inter-vivos trust" or "living trust." On the other hand, if the trust has been created to go into effect only after the Grantor dies, then it is referred to as a "testamentary trust."
Also, if a trust is created under the terms of a Last Will and Testament, then it is a "testamentary trust."
What is the difference between Revocable Trusts and Irrevocable Trusts?
When comparing revocable and irrevocable trusts, if the trust is a revocable trust, then in most cases the Grantor, Trustee, and Beneficiary will be one in the same person. The two most common uses of a Revocable Living Trust are to plan for disability and to avoid probate of the assets that have been funded into the trust prior to the Grantor's death.
If the trust is an irrevocable trust, such as an Irrevocable Life Insurance Trust, then the Grantor is not the Trustee or Beneficiary, otherwise the purpose of the irrevocable trust will be defeated. The most common use of an irrevocable trust is to move assets out of the Grantor’s name and down to the next generation for their use and enjoyment, which in turn will reduce the value of the Grantor's estate for estate tax purposes..
There are many kinds of trusts. Often trusts are set up to care for minor children or disabled adult relatives. A parent can name a trustee to be in control of the trust finances and property. The trustee is usually a family member or trusted friend. The trustee can be paid an hourly rate or a set monthly amount for their services out of the trust assets.
A special needs trust or supplemental needs trust can be set up to provide benefits to a disabled person. It may be possible for them to receive trust benefits without being disqualified from receiving government benefits such as Social Security and Medicaid. The trust must contain language making clear that trust distributions are to supplement, not replace, any basic support benefits otherwise available to the disabled person.
If you are interested in exploring ways in which you can plan for yourself or your loved ones, please contact Andrews & Myers today for a free consultation (360) 452-4448.
