If you have yet to explore your estate planning options and set up strategies that will protect you, your loved ones, and your legacy, you are far from alone. According to data gathered in 2022, approximately 67 percent of Americans have no estate plan in place. In other words, only one in three American adults has taken the time to establish an estate plan. There are many reasons why so many people put off this important process, and common misconceptions about estate planning stubbornly persist. For instance, many people mistakenly believe that estate planning is only necessary for wealthy individuals or retirees with substantial assets. Moreover, estate planning encompasses so much more than creating a will that designates which assets you plan to pass on to specific beneficiaries. A comprehensive estate plan can designate a power of attorney to ensure that someone you trust will handle important health and financial decisions in the event of your incapacity, and creating an Advance Directive for Health Care will document your preferences for end of life decisions.
As you begin to explore your estate planning options in the greater Spokane area, working with a highly qualified and experienced estate planning and probate attorney will empower you to make informed decisions about the future with greater certainty and confidence. The guidance of a knowledgeable estate planning lawyer is beneficial in multiple ways, one of which is exploring probate avoidance strategies such as joint tenancy, living trusts, and beneficiary designations. This post will highlight some of these probate avoidance strategies, with an emphasis on how you can use Washington’s community property laws as a way to avoid probate.
How to Avoid Probate in Washington State
Before we dive into some of the probate avoidance strategies available to couples and individuals in Washington State, it’s important to understand what probate is and why some people want to avoid this legal process. The American Bar Association (ABA) defines probate as “the formal legal process that gives recognition to a will and appoints the executor or personal representative who will administer the estate and distribute assets to the intended beneficiaries.” Essentially, probate is a way of ensuring that the estate pays any outstanding debts the decedent owed and that all applicable taxes are paid before the remaining assets are distributed among the beneficiaries. When the decedent leaves a valid will behind, the personal representative will use this legal document to guide the distribution of assets among the beneficiaries according to the decedent’s wishes. However, when an individual passes away without a valid will in place, the personal representative will use Washington’s succession laws to administer the estate and govern the dispersal of assets. While many people have no strong feelings about probate, some individuals want to set up an estate plan that utilizes probate avoidance strategies in order to simplify the transfer of assets upon their passing.
Moreover, since probate is a legal process, it becomes a matter of public record, and many people want to minimize the amount of personal or sensitive information that’s publicly available. Probate can also take several months to complete, and issues can arise at any point that may prolong the probate process or make it more costly for your loved ones. If you are interested in avoiding probate in Washington state, reach out to a knowledgeable and caring Spokane estate planning and probate attorney to discuss your options.
Community Property Law in Washington State
One strategy for minimizing the need for probate in Washington is for a married couple to establish a Community Property Agreement (CPA). Simply put, creating a CPA as part of your estate plan allows one spouse’s ownership of a property to be transferred to the other spouse upon their passing. With this agreement in place, the surviving spouse will not have to wait for the property to move through the probate process; instead, the decedent’s ownership of the property automatically passes to the surviving spouse without the need for probate. Upon the passing of one spouse, the surviving spouse will usually have to complete certain steps before the ownership of the property can be transferred. If you have questions about Washington community property laws or you’re interested in learning more about how you can use marriage and property laws in Washington as probate avoidance strategies, reach out to an experienced probate and estate planning lawyer at your earliest convenience.
Other Ways of Avoiding Probate in Washington State
A Community Property Agreement is one of several probate avoidance strategies you can explore when working on your estate plan. When you meet with your estate planning attorney, you can learn about alternatives to this probate avoidance strategy, such as joint tenancy, living trusts, and beneficiary designations. Here is some basic information about these three CPA alternatives.
Joint Tenancy
Unmarried individuals who want their property to pass to a designated beneficiary without being subject to probate can explore the option of establishing a joint tenancy agreement. You can take steps to create a joint tenancy in Washington state, which will ensure that your property will automatically transfer to the person you name as your joint tenant upon your passing (and without having to pass through probate). However, creating a joint tenancy does not protect it from creditors.
Living Trusts
When people choose to set up a living trust, property can be transferred to the trust and overseen by the trustee (i.e., the individual who creates the trust) during their lifetime. When the individual passes away, a successor trustee will manage the assets in the trust for the designated beneficiaries. Any assets placed in the living trust will not be subject to probate.
Beneficiary Designations
Another effective probate avoidance strategy is setting up payable-on-death accounts and other types of beneficiary designations that specify the individual to whom you intend to bequeath account balances, insurance benefits, and other funds or securities when you pass away. No matter what your needs and goals may be, working with an experienced estate planning and probate lawyer is important to ensure proper understanding and implementation of these alternatives, safeguarding assets, and streamlining the estate planning process for married couples and individuals in Washington.
It’s never too soon to start exploring your estate planning options to ensure the safety and security of you and your loved ones. Reach out to Kristina Mattson Law today at (509) 998-6629 to discuss your estate planning and probate avoidance goals with a dedicated and caring Spokane attorney.
