As you create your estate plan, you may wonder which documents are essential to achieving your goals and ensuring your wishes are carried out. Working with knowledgeable estate planning lawyers can help you determine which documents to incorporate into your estate plan in Washington State.
Essential Estate Planning Documents
Some of the most commonly used estate planning tools in Washington State include:
Last Will and Testament
A will serves as the foundation of most estate plans. Through a will, an individual can:
- Appoint an executor to manage the estate administration process after their death.
- Specify how assets should be distributed among heirs and beneficiaries.
- Establish a testamentary trust that comes into existence after death to benefit and protect assets for beneficiaries.
- Nominate a guardian for minor children in the event both parents pass away.
Without a valid will, Washington State’s intestacy laws determine how your assets are distributed, which may not align with your wishes.
Trusts
Many individuals and families use trusts to protect and manage assets. Depending on the type of trust, they can:
- Allow assets to transfer to beneficiaries privately without the probate process.
- Provide for loved ones in a structured manner, preventing misuse of inheritances due to personal challenges or poor financial decisions.
- If done through a will, help individuals qualify for government benefits, such as Medicaid, to cover long-term care costs or protect assets from creditors.
Some familiar types of trusts include supplemental needs trusts, special needs trusts, marital trusts, and revocable living trusts.
General Durable Power Of Attorney for Finances and Durable Power Of Attorney for Health Care
A durable power of attorney ensures that someone you trust can make decisions on your behalf if you become incapacitated due to physical or cognitive decline. In a General Durable Power Of Attorney for Finances, your agent can help you with legal and financial matters. In a Durable Power Of Attorney for Health Care, your agent will make health care decisions for you when you are no longer able.
A person can specify the scope of their agent’s authority under the power of attorney, authorizing them to handle medical, legal, or financial decisions/matters. Effective, and well-done powers of attorneys can help people avoid court-ordered and supervised legal guardianship/conservatorship.
Advance Directive / Healthcare Directive
An advance directive / healthcare directive, sometimes colloquially known as a ‘living will’, allows a person to express their preferences and beliefs in writing regarding healthcare treatment and end-of-life care. Such a directive guides a person’s healthcare agent, family members, and medical providers as they determine what an incapacitated patient would have wanted for their medical treatment at end-of-life.
Beneficiary Designations and Account Titling
Financial accounts and life insurance policies may have beneficiary designations that allow the account/policyholder to designate who should receive ownership of the account or benefits from the policy after the holder’s death. These designations typically bypass your will and probate and transfer to the named beneficiaries after your death.
Similarly, financial accounts may be titled jointly with another owner. Accounts held as joint tenants with rights of survivorship pass to the surviving owner. Joint ownership may bypass your will and your dispositive wishes. An experienced estate planning attorney can help ensure that these designations align with your overall estate plan and provide the guidance needed to achieve your goals.
Community Property Agreement
In a community property state like Washington, spouses may use a community property agreement to expressly designate various assets as community property, or separate property. A Community Property Agreement may be used to automatically vest all assets in the surviving spouse, thereby bypassing probate.
Contact an Estate Planning Lawyer Today
An experienced estate planning and elder law attorney can help you determine what documents you need to achieve your goals and wishes. Contact ELG Estate Planning today for an initial consultation with an estate planning attorney to discuss your legal options.