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The first question clients often ask is, what is a revocable trust and do I need one? You need to know the benefits before deciding if a revocable trust is for you. You also need to know the limitations of having a revocable living trust—what a trust can’t do—to know whether it’s right for you. This is a list of 3 common misconceptions to help guide you in your estate planning. Will Protect My Assets From Creditors Will Save on Taxes Not Rich Enough to Have a Trust A revocable living trust will protect my assets from creditors. A revocable trust will not protect you from creditors by the simple fact that it is revocable. To truly protect your assets from creditors, you need to put them into an irrevocable trust—not a good strategy unless you want to give your assets away. One strategy that may help protect your personal assets from business creditors is to form an LLC. A revocable trust will save on taxes. A revocable living trust does not have a tax benefit for the same reason that it doesn’t protect assets from creditors. The tax treatment of revocable living trusts is essentially the same as if the property was not in the trust. This means that capital gains are still your responsibility if generated by assets in the trust, and assets in the trust still count in calculating any estate tax liability. I’m not rich enough to have a trust. This is an extremely common misconception, that a trust will help those with more money and property. But since the trust doesn’t help with taxes or asset protection, there is no greater benefit as wealth increases. The main benefit of a revocable living trust is to avoid probate. So those with smaller estates may be the ones most in need of trust planning because their dependents can least afford to incur the costs and delays of probate. You May Also Like: Why You Want a Revocable Living Trust Understanding that a revocable living trust will not protect your assets from creditors or save on taxes are an important consideration in determining whether one is right for you. Revocable living trusts are also not just for the wealthy and may save your loved ones the expense and hassle of probate in the future. Knowledgeable | Practical | Compassionate At Eastside Estate Planning we focus exclusively on estate law and offer reasonable flat fees, depending on your individual needs. With 10 years of legal experience and an advanced tax degree, Robert is an expert at explaining complex estate planning concepts simply and advising his clients to make the best decision. Interested in learning more about our services? Visit our website for more information, or schedule a free consultation with Robert to receive a personalized quote. Service Areas: Eastside Estate Planning is dedicated to providing estate planning, last will, and trusts services to individuals and families in the following areas: Bellevue | Redmond | Monroe | Duvall If you reside in any of these locations and are in need of professional estate planning assistance, we are here to help. Robert is committed to delivering personalized and top-quality estate planning solutions to clients within these cities. Contact us today to discuss your estate planning needs and secure the future of your assets and loved ones. You May Also Like: The Best Way to Leave Money to Young Children

If you’re like most people, you probably have no idea what a power of attorney is. Does having a power of attorney mean you suddenly start using words like “hereby” and “moreover”? Does it mean you can summon the spirit of attorneys past and start suing everyone you know just for funsies? It may not be that special, but it can still be important if you need it. A power of attorney is a document that gives someone the legal authority to act and make decisions for you while you are alive but unable to act for yourself. This can be critical if you are incapacitated in some way, from something dramatic like falling into a coma after an accident or something more common and subtle like the effects of dementia. If you don’t have a power of attorney in place, your loved ones may need to petition a court for adult guardianship just to pay your bills. Not having a power of attorney when it’s needed can be unnecessarily costly, both emotionally and financially for your loved ones. You May Also Like: Choosing a Guardian – Part 1 The two most common areas where powers of attorney are often needed: Medical Decisions Financial Decisions Financial Power of Attorney A Financial Power of Attorney gives another person the power to make financial decisions for you if you can’t. This could mean doing simple things like paying bills and withdrawing money or more involved tasks like selling real estate and managing a business. When you create a power of attorney, you choose what decisions your financial agent is authorized to make. Health Care Power of Attorney A Health Care Power of Attorney gives another person the power to make health care decisions for you if you can’t. In the power of attorney, you appoint a health care agent and outline the types of decisions the agent is authorized to make. If you don’t have a living will, your healthcare agent can make end-of-life decisions for you. If you do have a living will, you won’t need an agent to make end-of-life decisions, but you may want a friend or family member who you trust to authorize other important medical treatments. You May Also Like: Choosing a Guardian – Part 2 Knowledgeable | Practical | Compassionate At Eastside Estate Planning we focus exclusively on estate law and offer reasonable flat fees, depending on your individual needs. With 10 years of legal experience and an advanced tax degree, Robert is an expert at explaining complex estate planning concepts simply and advising his clients to make the best decision. Interested in learning more about our services? Visit our website for more information, or schedule a free consultation with Robert to receive a personalized quote. Service Areas: Eastside Estate Planning is dedicated to providing estate planning, last will, and trusts services to individuals and families in the following areas: Bellevue | Redmond | Monroe | Duvall If you reside in any of these locations and are in need of professional estate planning assistance, we are here to help. Robert is committed to delivering personalized and top-quality estate planning solutions to clients within these cities. Contact us today to discuss your estate planning needs and secure the future of your assets and loved ones. You May Also Like: Is a Will Enough or Do I Need a Revocable Living Trust?

This is a document that has so many different names it could be in the Witness Protection Program. You might know this one as a Living Will, Health Care Directive, Advance Directive, Advance Health Care Directive, and Do Not Resuscitate. No matter what it’s called, the purpose of this document is to give medical providers instructions on what to do in certain near-death situations. This is most often used to address the unlikely situation that you are on life support with no reasonable chance of recovery. A health care directive would allow your doctor to let you die in peace without artificially prolonging your life, at great emotional and financial cost to your family. You May Also Like: Important Issues in Estate Planning for Washington Residents Healthcare directives can be highly personal and address your preferences for all the following: CPR or an electric shock to resuscitate your heart Feeding tubes Artificial hydration Comfort care and drugs to reduce pain Antibiotics Ventilators and artificial breathing The type of situation where a health care directive is often needed is what is commonly referred to as a “pull the plug” situation. It avoids unnecessary treatments and allows you to convey your values and wishes in an end-of-life situation. Having doctors prolong your life when you are incapacitated with no reasonable chance of recovery can come at a great cost to your family, emotionally and financially. Having a health care directive in place can allow you to pass away on your own terms without becoming a burden to the people you love. Knowledgeable | Practical | Compassionate At Eastside Estate Planning we focus exclusively on estate law and offer reasonable flat fees, depending on your individual needs. With 10 years of legal experience and an advanced tax degree, Robert is an expert at explaining complex estate planning concepts simply and advising his clients to make the best decision. Interested in learning more about our services? Visit our website for more information, or schedule a free consultation with Robert to receive a personalized quote. Service Areas: Eastside Estate Planning is dedicated to providing estate planning, last will, and trusts services to individuals and families in the following areas: Bellevue | Redmond | Monroe | Duvall If you reside in any of these locations and are in need of professional estate planning assistance, we are here to help. Robert is committed to delivering personalized and top-quality estate planning solutions to clients within these cities. Contact us today to discuss your estate planning needs and secure the future of your assets and loved ones. You May Also Like: Just What is Probate Anyway?

To some people, just saying the word “Probate” is too scary, like saying the V-word at Hogwarts. They come to me and whisper that they want to do whatever it takes to avoid “that thing,” and then they shiver. These are usually people from outside of Washington State. I am not licensed to practice in other states, but the process must be really bad if people are more scared of probate than they are of dying. Before determining whether probate is something you want to avoid or not, you should first know what it is. Here are the most common questions people have about probate. What is probate? Probate is the legal process of settling a person’s estate—their assets and debts—when they die. Does a Will need to go through probate? Yes. Your assets (real estate, bank accounts, stocks, your special kombucha homebrewing equipment, etc.) will get distributed either by your last will and testament if you have one, or to your heirs according to the default state formula. Does probate mean going to court? Yes. Probate involves going to court and asking a judge to begin the process of settling the debts and distributing the assets of the deceased. What assets need to be probated? Basically, any asset that is in your name without a designated beneficiary will need to be distributed to your beneficiaries or heirs through probate. You May Also Like: Why You Want a Revocable Living Trust What assets don’t need to be probated? Anything you own with a designated beneficiary, such as a 401(k), IRA accounts, life insurance policies, and annuities will pass directly to the beneficiary. Real estate can pass outside of probate if owned with a right of survivorship or through a transfer on a death deed. How does a trust avoid probate? Assets in a trust avoid probate because they are titled in the name of the trust, not the individual. In most instances, bypassing the probate process allows clients to save the expense and time of going to court. It also avoids potential disputes among your beneficiaries if an asset is not named in your last will and testament. Knowledgeable | Practical | Compassionate At Eastside Estate Planning we focus exclusively on estate law and offer reasonable flat fees, depending on your individual needs. With 10 years of legal experience and an advanced tax degree, Robert is an expert at explaining complex estate planning concepts simply & advising his clients to make the best decision. Interested in learning more about our services? Visit our website for more information, or schedule a free consultation with Robert to receive a personalized quote. Service Areas: Eastside Estate Planning is dedicated to providing estate planning, last will, and trusts services to individuals and families in the following areas: Bellevue | Redmond | Monroe | Duvall If you reside in any of these locations and are in need of professional estate planning assistance, we are here to help. Robert is committed to delivering personalized and top-quality estate planning solutions to clients within these cities. Contact us today to discuss your estate planning needs and secure the future of your assets. You May Also Like: Is a Will Enough or Do I Need a Revocable Living Trust?