Many leave to happenstance their estate planning. "I've already got a will" or "I don't have anything" are two very frequent excuses I hear in my practice. Here are some thoughts you might consider.
CHANGES IN THE LAW
The law for the estates of people who pass away continues to change. For example, for 2010 there is no Federal Estate Tax (at least for now). However, the Estate Tax comes back on January 2011 in a big way! The exemption for estates was $3.5 million per person. In 2011 it will be literally millions less. For those who may have an estate tax problem, they need to consider now how to handle that.
On the flip side, Washington State still has an inheritance tax.
Over the years, there have been changes that have affected how estates are distributed, presumptions with respect to heirs and issues affecting disinheritance. You should carefully review your estate plan to see if you are affected.
YOUR ASSETS
If you own real estate in the state of Washington, even if it is just a single family residence, you need to have some estate planning in place. Some individuals prefer to have a living trust which will avoid probate. Even if you have a trust you need to make sure that you have properly funded it. Failure to properly fund a trust will effectively nullify the purpose for which it was created.
If you have neither a will nor a trust, but have real property or an estate over $60,000.00, your heirs may be required, upon your death, to do an intestate administration of your estate. This may result in court intervention into the resolution of your estate and the requirement that your estate administrator post a bond. Even a simple will can eliminate those two requirements. You may not think there is much value in your home, but the administrative hassles avoided with some simple estate planning will be huge.
Finally, anyone who has young children need a will. In the event of your and your spouse's death, the court will have to appoint a guardian to care for your children. While no one can parent as well as you can, you want to be able to choose the second best parents for your children. Washington law allows parents to nominate guardians for their children in their wills.
ILLNESS OR INCAPACITY
If you are unable or unavailable to manage your financial affairs, someone will have to do that for you. You want to make sure that you have delegated that authority. If you have major surgery planned, you want to make sure that if you are unable to make health care decisions for yourself that you have designated someone you trust to make those decisions for you.
Get your affairs in order in 2010!
No comments:
Post a Comment