Peter F. Cowles, Attorney

Is estate planning just for rich people?

No.  Most people can benefit from estate planning.  If you own anything at all, even just the furniture in the home you rent, you should arrange for your property to go to your beneficiaries in the best possible way.

However, your "estate" may be worth more than you think.  An estate includes your savings, of course, but also any business you may own, life insurance proceeds, stocks and bonds, and profit sharing and pension plans.  Your home, rental property, other real estate, and any valuables such as a car, jewelry, antiques or a coin collection are part of your estate.  Also, any monies you are owed, any patents or copyrights you may own and any royalty agreements you may have are part of your estate.

Estate planning can also include guardianship and trust provisions for your minor children.  If you have minor children, we include simple guardianship and trust provisions in our standard Will at no extra charge.

What is involved in estate planning?

Estate planning is different for everyone,  Among other things, the kind of estate planning you need depends on whether you have a family and its size, the kinds and amounts of property you own and what you want your estate planning to accomplish.

One simple estate planning device is a will.  Because Washington State is a community property state, another is a Community Property Agreement.  Estate planning often means making decisions about the way you "hold title to" or own a house or other real estate, bank accounts, life insurance policies, pension and profit-sharing plans, stocks and bonds, and more.  Estate planning might include setting up one or more trusts.  You can use any or all of these estate-planning devices to make sure your beneficiaries receive your property according to your wishes after your death.

Estate planning can also include a Living Will or Directive to Physicians to let your doctors and family know what you want in terms of life support should you become incapacitated due to injury or terminal illness.  It also can include a Durable Power of Attorney in which you name someone to handle your affairs should you become unable to handle them yourself.

Our office would be happy to discuss all these options with you and help you design an estate plan which covers all your needs.

Do I need a Will?

Washington state law does not require that you have a Will, but, if you have children, have definite plans on who you want to receive a gift from your estate or have an estate worth over sixty thousand dollars ($60,000.00) it is highly advisable that you have a Will. 

What other ways can estate planning help my beneficiaries?

After discussing the particulars of your estate and what you want to accomplish, our office may recommend that you change the way you own or hold title to some of your property such as life insurance policies, real estate and other possessions.  The ways you hold title to property can affect your total estate plan, including the need for probate and the taxes that must be paid during your lifetime and on your death. 

Should I give any property away during my lifetime?

If you give money or other property away during your lifetime, there may be gift taxes or other consequences to consider.  If your property passes to someone else after your death, estate taxes may be charged.  There are a number of considerations related to lifetime gifting in the context of overall estate planning.

You may have property, such as a collection of antique silver or a lake front lot that you expect to increase in value in the years ahead.  In this case, the amount of taxes to be paid may be less if you gave the property to someone else before it became more valuable.  You must decide whether you want to part with the property during your lifetime and whether you can afford to do so.

Currently, you can give anyone cash or property worth up to $12,000 per year during your lifetime without paying a gift tax.  If you are married, your spouse also can give away a maximum of $12,000 to anyone without paying tax.  You can also pay tuition and medical care in any amount on the behalf of anyone else without paying a gift tax.  This may be a very effective way to reduce what otherwise is a potentially taxable estate.

The tax laws on estates can change at any time.  The following link is to the Internal Revenue Service (IRS) website on Tax Law Changes for Gifts and Estates and Trusts.  The federal tax exemption is $2,000,000 and Washington State has a separate state estate tax.  Currently, there is a $2,000,000 federal and Washington state exemption (any estate valued at less than $2,000,000 of assets has no estate tax liability in Washington).  In 2009 the federal exemption is set to climb to $3,500,000, in 2010 the exemption would be unlimited then in 2011 it drops down to $1,000,000 unless, as most expect, congress acts to change the law.  Our office can help you sort through the issues and changing law in this area.

Fees

Our office has standard flat rate fees for simple forms of the following documents;

Wills - $175 ($295 for reciprocal or husband and wife Wills)

Community Property Agreements - $50.00

Powers of Attorney - $125 ($195 for reciprocal Powers of Attorney prepared simultaneously)

Living Wills - $50 ($85 for two Living Wills)

Codicils - $95 ($135 for reciprocal Codicils)

Additional notary fees may apply and fees are subject to change without notice.

Also, if your estate requires more time than our standard flat fees allow for, we would charge based on the time it takes to fully discuss your estate and then produce the appropriate documents.  These fees are subject to change without notice.