Embracing your Legacy: Estate Planning 

By Megan Gebhardt, Gebhardt Law Office (Estimated reading time: 3 minutes)

When you think of leaving your legacy, what comes to mind? Fond memories shared amongst loved ones as they flip through an old scrapbook? Your biggest accomplishments remembered after you’re gone? What about your estate plan? At its heart, estate planning is about creating a legacy for the living.  

Planning for the future is a crucial step to ensure that your wishes are honored and your loved ones are taken care of. Estate planning is not just about distributing your assets; it is also about preparing for potential incapacity and minimizing conflicts among family members.  

Here are some essential points to consider for your estate plan: 

1. Document Your Assets: Leaving behind basic information about your assets, such as your financial accounts, real estate ownership, retirement accounts, and life insurance policies is crucial. Tax and account statements are often delivered electronically, making it difficult for loved ones to determine what assets you own. Leave an inventory of all your assets so that your Personal Representative or Trustee can easily determine what you have and where it is located. This prevents valuable assets, such as a life insurance policy, from going unclaimed. 

2. Make Dispositions: Ensure you have documents that properly dispose of your assets and consider what happens to your assets if you do not have a will. If you don’t have a will, create one. Ensure that assets with beneficiary designations reflect your current intent. Ask yourself if family members can handle the assets being passed to them. Do they need a trust so that others serve as gatekeepers for the assets? Trusts are an especially beneficial option when assets pass to children. Making dispositions can help ensure that your assets are distributed according to your wishes in a more efficient manner. Making dispositions can help ensure that your assets are distributed according to your wishes in a more efficient manner. 

3. Protect Minor Children: If you have minor children, it is crucial to include provisions in your estate plan for their care. This includes naming a guardian who will take care of them in the event of your death or incapacity. Without a designated guardian, the court will decide who will take care of your children, which may not align with your wishes. 

4. Plan for Incapacity: Most people experience a period of incapacity prior to death. Having medical directives and a financial Durable Power of Attorney allows a person of your choice to step into your shoes and manage your affairs during your incapacity. This ensures that your finances and medical decisions are handled according to your wishes without the need for a court Guardianship process. 

5. Plan for Estate Tax. Washington has an estate tax that can result in a married couple paying higher overall estate tax than two single individuals. Proper tax planning in your will or trust will allow for married couples to enjoy the full benefit that unmarried persons enjoy in Washington.  

6. Review and Update Regularly: Life is constantly changing, so it is important to regularly review and update your estate plan to reflect any changes in your life or financial situation. This includes major life events such as marriage, divorce, birth of a child, or significant changes in your assets. 

7. Seek Professional Advice: You spend a lifetime raising your children and accruing assets, now is the time to seek the best advice you can afford. Talk in detail with competent financial planners and an attorney about your estate plan. 
    

By incorporating these actions into your estate planning process, you can ensure that your legacy is preserved and your loved ones are taken care of according to your wishes. 

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