Estate planning is an essential step for all Washington residents, no matter their age or health. However, estate planning for retirees in Spokane is especially important since there are certain documents that you need to have in place.
In today’s post, we will be discussing the types of estate planning documents retirees in Spokane need to have. We will also discuss any ongoing things you may need to do, such as reviewing or updating your estate plan. So, keep reading to find out how you can begin estate planning for retirement in WA.
Last Will and Testament
Having an estate plan is absolutely necessary for all Washington residents, regardless of the size of your estate. But it is especially important for retirees since you are more likely to need these documents sooner rather than later. And some of the most important estate planning documents you need to have in place are a last will and testament.
A last will and testament is a legally binding document that helps to outline your last wishes. This often includes where your property and assets will go at the time of your death. You can also use a will to make arrangements for any dependents so that they are taken care of.
Without a will, your estate would be intestate, which means that your property and assets will be distributed according to Washington law.
Revocable Living Trust
Retirees could also benefit from a revocable living trust, which allows the persons that create and fund the trust to control the assets in the trust. After your death, your successor trustee can distribute the assets in the trust without filing a probate. A revocable living trust is different from an irrevocable trust because the persons creating the trust retain control of the assets in the trust.
Durable Power of Attorney
Those going into retirement need to be especially aware of what a “power of attorney” means and the authority it grants. A springing power of attorney allows you to name someone who can make decisions for you if there is a document from a physician indicating that you no longer have sufficient mental capacity to make decisions for yourself. A durable power of attorney is more flexible because it gives your agent the authority to make decisions on your behalf, without a finding of mental incapacity, so long as the decisions are in your best interest.
A durable power of attorney ensures there is somebody who will act on your behalf and it avoids the need for a court appointed guardian or conservator if you get to a point where you have insufficient capacity to sign a contract. This provides clarity for your family and ensures there is someone that you trust to make decisions on your behalf.
Advance Health Care Directive
An advance health care directive, also called a living will, is a document wherein you can specify your end of life decisions. The person listed as your healthcare agent in a health care durable power of attorney can work with your physicians to communicate your end of life decisions.
HIPAA Authorization Forms
Depending on the circumstances, it may be a good idea to include HIPAA authorization forms with your estate plan. These are legal forms regarding your health information and whom is entitled to receive your health care records.
HIPAA authorization forms make it easier for your family to access your health information, especially if you become incapacitated. This can make it easier for you to get the healthcare that you need and for your loved ones to make important medical decisions.
Beneficiary Designations
You can use beneficiary designations for many types of assets to avoid probate. When you complete payable on death beneficiary forms, indicating persons or entities that are to receive the asset at your death, when you pass away, that asset is directly transferred to the named beneficiary.
Beneficiary designations are often used for assets such as:
- Checking and savings accounts
- Life insurance policies
- Four 401(k) accounts
- IRA retirement accounts
- Certain annuities
When to Review and Update Your Estate Plan
The general timeline for when you should review your estate plan is once every 3 to 5 years. However, this is dependent on each person’s situation since any type of major life change could serve as basis to review your estate plan.
Here are some examples of when you need to review and potentially update your retiree estate plan in Spokane:
- A beneficiary passed away.
- Marriage or divorce.
- The birth of a new family member.
- Purchase or sale of real estate.
- A change in Washington state law.
Regularly reviewing and updating your estate plan guarantees that all of the information is up-to-date and accurate.
FAQ Section
Do retirees in Washington need both a will and a trust?
Although you aren’t legally required to have a will or a trust in Washington, if you have a trust, a pour over will is recommended.
What happens if I become incapacitated without a power of attorney?
If you become incapacitated and do not have durable power of attorney documents for health and finances, a loved one would most likely have to ask the court to appoint a guardian and/or conservator. This is a lengthy and expensive process that can be avoided with power of attorney documents in place.
Can outdated beneficiary designations create problems for my family?
Yes. If beneficiary designations are outdated and do not mirror your estate plan, your assets may not be distributed to the persons or entities you intend to receive your assets at death.
Start Preparing For the Future With the Help of an Elder Law Attorney
To ensure everything is in order and your wishes are in writing, you need to have a retirement estate plan ready to go. To learn more about how this process works, reach out to Kristina Mattson Law today by calling 509-998-6629 to speak with an experienced and knowledgeable elder law attorney in Spokane, WA.
