When the average person hears the term “estate plan,” they often picture a last will and testament. Although a will is an important legal document to put in place as you plan for the future, it is far from the only estate planning tool that is available to those hoping to protect their loved ones and safeguard their legacy. With the widespread online availability of cost-effective (even free) templates for creating wills and other estate planning documents, Washington residents can put simple estate plans in place with relative ease. However, it’s essential to recognize that—at least when it comes to estate planning—you often get what you pay for. In other words, using these generic online templates often means that the will you create is overly vague and does not sufficiently clarify or protect your wishes. Most probate-related legal battles stem from unclear or poorly worded wills that cause confusion among the estate’s beneficiaries. Moreover, the common misconception that a will automatically controls every detail of your estate plan can trigger further confusion, especially when beneficiary designations contradict the terms set forth in the will. In these situations, beneficiary designations often take legal priority, which may go against your wishes as expressed in your will.
The best way to minimize confusion and ensure that your vision for your loved ones and your estate is known, respected, and carried out is to work with a highly qualified and experienced Spokane estate planning attorney who can help you identify your goals and put the necessary protections in place. Let’s take a closer look at the interplay between wills and beneficiary designations in Washington state and some tips for how to avoid will disputes by partnering with a trusted Spokane estate planning lawyer when preparing for the future.
How Beneficiary Designations Work in Washington State
Valuable assets like life insurance policies, retirement accounts, and certain bank accounts and securities often require the owner to designate a beneficiary who will inherit or take over these assets when the original owner passes away. Beneficiary designations allow for a smooth and seamless transfer of ownership, which eases the burden on the estate and family members after their loved one’s passing. When you set up a life insurance policy, 401(k), IRA, or bank account with either a payable-on-death (POD) or transfer-on-death (TOD) policy, you will be asked to designate a beneficiary to receive these assets upon your death. It’s worth noting that the beneficiary designation is basically a contract with the financial institution or bank, which means that the institution will follow the terms of this contract—even if the terms or instructions expressed in your will contradict the beneficiary designation.
Can Beneficiary Designations Override a Will in Washington?
Under Washington law, nonprobate assets are defined as “those rights and interests of a person having beneficial ownership of an asset that pass on the person’s death under a written instrument or arrangement other than the person’s will” (RCW 11.02.005). Nonprobate assets, such as joint bank accounts with right of survivorship, transfer on death deeds, payable on death bank accounts or serities, and individual retirement accounts, use beneficiary designations to govern the transfer of assets upon the owner’s death. In cases where the terms of the will are at odds with the beneficiary designations, these assets will typically be handled according to the beneficiary designation itself, not the will. The legal authority of beneficiary forms and designations in Washington state is substantial, so it’s essential that Spokane residents regularly revisit and update their beneficiary designations to ensure that they align with the terms set forth in the will.
The Importance of Estate Planning Coordination in Washington State
While focusing on creating a clear and comprehensive will and completing the beneficiary designations on all nonprobate assets is important, synchronizing these efforts is the best way to minimize confusion and costly legal disputes later on. Making sure to update life insurance beneficiary designations as your priorities and wishes change and revising your retirement account beneficiary designation choices as needed ensure that your vision for your loved ones and legacy remains aligned with that expressed in your will. For instance, forgetting to update your beneficiary designation on a retirement account after your divorce could mean that your ex-spouse receives these assets upon your passing, even if you had updated your wishes in your will. Seeking the guidance of a knowledgeable and experienced Spokane estate planning attorney can give you the clarity and reassurance you need to face the future with greater confidence and security.
How to Avoid Will Disputes in Washington State
When you picture the future, the last thing you want is for your loved ones to find themselves embroiled in heated and costly disputes over your estate. By taking steps right now, you can prevent these issues and set your loved ones up for a stable and secure future. Making sure to regularly review and update all beneficiary designations as your circumstances and priorities change (i.e., divorce, remarriage, the death of a spouse, etc.) and coordinating these designations with those expressed in your will are the most important actions you can take to prepare your loved ones for what lies ahead. Enlisting the guidance of a caring and dedicated Spokane estate planning lawyer to assist you with these efforts and ensure consistency across all aspects of your estate plan can give you the must-needed peace of mind you and your loved ones deserve.
Learn More About Your Estate Planning Options Today
Planning for the future today can give you the confidence and reassurance you need to enjoy a greater sense of security and peace of mind. At Kristina Mattson Law, we believe in working closely with every client we serve to ensure that the estate planning process is empowering and fully customized to address their specific needs and goals. Please get in touch with our Spokane, Washington office today by calling (509) 998-6629 to get started with a friendly and experienced estate planning attorney.
