Estate planning & Probate
ESTATE PLANNING:
Estate planning includes planning for incapacity as well as for death through the use of Wills, Trusts, Community Property Agreements, Powers of Attorney and Health Care Directives. Estate planning can protect your family, simplify probate, and give you peace of mind. Estate planning is something we are passionate about here at Hazen, Hess & Ott. With proper estate planning we can help you accomplish the following:
· Direct who will receive your assets at your death
· Provide for gifts to charities
· Name the person who will wind up your affairs (called a “personal representative”)
· Disinherit an heir
· Minimize estate taxes
· Avoid guardianship proceedings should you become incapacitated
· Name the person who will make medical decisions on your behalf upon your incapacity
If you have minor children, there are additional reasons to have an estate plan, among these:
· To select the person who will be the guardian of your minor children
· To provide that inheritances to minor children will be kept in trust for their benefit after they turn 18
· To ensure that an ex-spouse can’t control assets going to your minor children
We provide most estate planning services on a flat fee basis, please call us today for a comprehensive list of prices..
PROBATE:
Probate is a legal process in which a person (called a “personal representative”) obtains legal authority to wind up the affairs of a deceased person and to transfer the decedent’s assets to the beneficiaries of the estate. In Washington, most personal representatives obtain “nonintervention powers” enabling them to administer the estate without court intervention, resulting in a simplified and relatively inexpensive process.
Benefits of Probate. The benefits of probate are twofold: First, any disputes can be resolved by an impartial judge thus bringing finality to controversies . Second, after the required notices are given, creditors’ claims are barred if not submitted in a timely manner, thus preventing future claims of creditors after the estate has been closed.
When Probate Is Unnecessary. In some cases opening probate is not necessary, for instance:
· In the case of a married couple, when there is a surviving spouse and an existing community property agreement.
· If the estate of the decedent consists entirely of assets which are automatically transferred to a third party upon the death of the decedent, such as:
o Jointly held property with right of survivorship
o Assets with beneficiary designations and/or
o Payable upon death accounts or similarly held assets
· If the value of the estate is under $60,000 and there is no real estate
· If all of the assets of the estate have been transferred to a trust prior to death.
Information to Bring to the Initial Consultation. At the initial consultation, the following information is helpful in preparing the initial probate documents:
· Certified Copy of the Death Certificate
· Original Will, if any
· Original Community Property Agreement, if any
· Names and addresses of heirs
· Addresses of persons named in the Will
· Most recent bank statements and information on other assets of the decedent
· Information on any outstanding bills or expenses
Probate Costs and Expenses. We flat fee many of the routine probate matters and charge on an hourly basis for those issues unique to the estate. A client will receive a rough estimate of costs and expenses at the initial consultation. At their option a personal representative may charge an hourly fee for time expended in carrying out their duties. All fees and expenses are paid out of the probate estate.
After the death of a loved one, it is beneficial for the personal representative named in the Will or the heirs to sit down with a professional to obtain advice on what legal steps should be taken (whether probate is necessary or not) and what steps are required to wind up the decedent’s affairs. We strive to guide our clients through the probate process and to assist them in this difficult time.
Glossary of Terms
Codicil. An amendment to a Will.
Community Property. All property acquired during marriage or co-mingled with community property. At your death, if you have a surviving spouse, your estate will include one-half of the value of the community property.
Community Property Agreement. A contract entered into by a husband and wife in which they agree to characterize all of their assets as community property and they agree that upon the death of the first spouse, all community property will automatically go to the surviving spouse thus avoiding probate proceedings.
Decedent. A person who has died.
Intestate. A person who dies without a valid Will is said to have died “intestate.” Washington law determines who will receive the person’s assets when there is no Will.
Nonprobate Assets. Assets that pass to a third party by right of survivorship, beneficiary designation, payable upon death account, or some other form of automatic transfer. These assets typically are not subject to the directives of the Will.
Personal Representative. The person who winds up your affairs after your death, pays your bills, and distributes your assets according to your Will or according to the law, if you have no Will.
Separate Property. All property acquired before marriage, or by gift or inheritance during marriage, which has not been co-mingled with community property. At your death, even if you have a surviving spouse, your estate will include all of your separate property.
Will: A document, signed in front of two witnesses, that directs who will receive your assets at your death. The Will also appoints a personal representative and nominates the guardian of minor children.
Financial Durable Power of Attorney. A document in which you appoint a person as your agent to handle your financial affairs on your behalf and remains effective even in the event of your incapacity. The power of attorney is automatically revoked upon death.
Health Care Power of Attorney. A document in which you name an agent who will make health care decisions on your behalf should you become unable to make your own decisions. This document can avoid costly guardianship proceedings.
Health Care Directive or Living Will. Specifies your health care wishes in the event you have a terminal condition or are in a permanent unconscious condition. This document provides guidance to an agent under a health care power of attorney or to loved ones who may have to make difficult decisions.
Inter Vivos Trust. A trust set up during a person’s lifetime. Typically, there will be a “pourover” Will that directs that all of the assets in the probate estate are “poured over” into the trust at the trustor’s death.
Trustor. The person who creates a trust.
Trustee. The person who administers a trust.
Testamentary Trust. A trust whose provisions are contained in a Will. The trust does not become effective until death.
Nonprobate Assets. Assets that pass to a third party by right of survivorship, beneficiary designation, payable upon death account, or some other form of automatic transfer. These assets typically are not subject to the directives of the Will.
Intestate Succession. A person who dies without a valid Will is said to have died “intestate.” In such a case, Washington state law provides for the disposition of the assets according to set guidelines.
Estate planning includes planning for incapacity as well as for death through the use of Wills, Trusts, Community Property Agreements, Powers of Attorney and Health Care Directives. Estate planning can protect your family, simplify probate, and give you peace of mind. Estate planning is something we are passionate about here at Hazen, Hess & Ott. With proper estate planning we can help you accomplish the following:
· Direct who will receive your assets at your death
· Provide for gifts to charities
· Name the person who will wind up your affairs (called a “personal representative”)
· Disinherit an heir
· Minimize estate taxes
· Avoid guardianship proceedings should you become incapacitated
· Name the person who will make medical decisions on your behalf upon your incapacity
If you have minor children, there are additional reasons to have an estate plan, among these:
· To select the person who will be the guardian of your minor children
· To provide that inheritances to minor children will be kept in trust for their benefit after they turn 18
· To ensure that an ex-spouse can’t control assets going to your minor children
We provide most estate planning services on a flat fee basis, please call us today for a comprehensive list of prices..
PROBATE:
Probate is a legal process in which a person (called a “personal representative”) obtains legal authority to wind up the affairs of a deceased person and to transfer the decedent’s assets to the beneficiaries of the estate. In Washington, most personal representatives obtain “nonintervention powers” enabling them to administer the estate without court intervention, resulting in a simplified and relatively inexpensive process.
Benefits of Probate. The benefits of probate are twofold: First, any disputes can be resolved by an impartial judge thus bringing finality to controversies . Second, after the required notices are given, creditors’ claims are barred if not submitted in a timely manner, thus preventing future claims of creditors after the estate has been closed.
When Probate Is Unnecessary. In some cases opening probate is not necessary, for instance:
· In the case of a married couple, when there is a surviving spouse and an existing community property agreement.
· If the estate of the decedent consists entirely of assets which are automatically transferred to a third party upon the death of the decedent, such as:
o Jointly held property with right of survivorship
o Assets with beneficiary designations and/or
o Payable upon death accounts or similarly held assets
· If the value of the estate is under $60,000 and there is no real estate
· If all of the assets of the estate have been transferred to a trust prior to death.
Information to Bring to the Initial Consultation. At the initial consultation, the following information is helpful in preparing the initial probate documents:
· Certified Copy of the Death Certificate
· Original Will, if any
· Original Community Property Agreement, if any
· Names and addresses of heirs
· Addresses of persons named in the Will
· Most recent bank statements and information on other assets of the decedent
· Information on any outstanding bills or expenses
Probate Costs and Expenses. We flat fee many of the routine probate matters and charge on an hourly basis for those issues unique to the estate. A client will receive a rough estimate of costs and expenses at the initial consultation. At their option a personal representative may charge an hourly fee for time expended in carrying out their duties. All fees and expenses are paid out of the probate estate.
After the death of a loved one, it is beneficial for the personal representative named in the Will or the heirs to sit down with a professional to obtain advice on what legal steps should be taken (whether probate is necessary or not) and what steps are required to wind up the decedent’s affairs. We strive to guide our clients through the probate process and to assist them in this difficult time.
Glossary of Terms
Codicil. An amendment to a Will.
Community Property. All property acquired during marriage or co-mingled with community property. At your death, if you have a surviving spouse, your estate will include one-half of the value of the community property.
Community Property Agreement. A contract entered into by a husband and wife in which they agree to characterize all of their assets as community property and they agree that upon the death of the first spouse, all community property will automatically go to the surviving spouse thus avoiding probate proceedings.
Decedent. A person who has died.
Intestate. A person who dies without a valid Will is said to have died “intestate.” Washington law determines who will receive the person’s assets when there is no Will.
Nonprobate Assets. Assets that pass to a third party by right of survivorship, beneficiary designation, payable upon death account, or some other form of automatic transfer. These assets typically are not subject to the directives of the Will.
Personal Representative. The person who winds up your affairs after your death, pays your bills, and distributes your assets according to your Will or according to the law, if you have no Will.
Separate Property. All property acquired before marriage, or by gift or inheritance during marriage, which has not been co-mingled with community property. At your death, even if you have a surviving spouse, your estate will include all of your separate property.
Will: A document, signed in front of two witnesses, that directs who will receive your assets at your death. The Will also appoints a personal representative and nominates the guardian of minor children.
Financial Durable Power of Attorney. A document in which you appoint a person as your agent to handle your financial affairs on your behalf and remains effective even in the event of your incapacity. The power of attorney is automatically revoked upon death.
Health Care Power of Attorney. A document in which you name an agent who will make health care decisions on your behalf should you become unable to make your own decisions. This document can avoid costly guardianship proceedings.
Health Care Directive or Living Will. Specifies your health care wishes in the event you have a terminal condition or are in a permanent unconscious condition. This document provides guidance to an agent under a health care power of attorney or to loved ones who may have to make difficult decisions.
Inter Vivos Trust. A trust set up during a person’s lifetime. Typically, there will be a “pourover” Will that directs that all of the assets in the probate estate are “poured over” into the trust at the trustor’s death.
Trustor. The person who creates a trust.
Trustee. The person who administers a trust.
Testamentary Trust. A trust whose provisions are contained in a Will. The trust does not become effective until death.
Nonprobate Assets. Assets that pass to a third party by right of survivorship, beneficiary designation, payable upon death account, or some other form of automatic transfer. These assets typically are not subject to the directives of the Will.
Intestate Succession. A person who dies without a valid Will is said to have died “intestate.” In such a case, Washington state law provides for the disposition of the assets according to set guidelines.