On behalf of Jennifer C. Rydberg, Attorney at Law posted in Estate Administration & Probate on Friday, May 18, 2012
Kent business owners know that building a successful company typically requires a major personal investment. Because of this, many Washingtonians regard it as a top priority to pass on the fruits of their labors to heirs. According to a recent survey, most business owners recognize that estate planning is crucial to prevent family disputes and to make sure that plans for business succession avoid the complexities of probate court. Nonetheless, business owners too often put off their estate planning for business succession until later in life, and that can be a mistake.
When a business owner dies without an estate plan in place, business assets may be temporarily tied up in estate administration proceedings that can disrupt company operations. A simple will can be used to distribute business interests to heirs, but even a will may be subject to some amount of probate court administration.
On behalf of Jennifer C. Rydberg, Attorney at Law posted in Trusts on Thursday, May 10, 2012
The Seattle area hosts a diverse population representing a wide variety of religious backgrounds. As upcoming generations face increasing exposure to a range of ideologies, parents may encounter concerns that their spiritual traditions will not be carried on by their children.
A simple and effective estate plan can help perpetuate religious traditions by clarifying end-of-life wishes. Yet, it is important to recognize that religious considerations in instruments such as wills and trusts can have unintended consequences when they affect the distribution of estate assets.
On behalf of Jennifer C. Rydberg, Attorney at Law posted in Wills on Friday, May 4, 2012
Readers in the Seattle area have undoubtedly heard a litany of disturbing tales involving identity theft. What readers may not realize is that estate planning provides a good opportunity to protect against identity theft after death.
According to a recent study, each year more than 2.5 million Americans have their identities stolen after death, and hundreds of thousands of people fall victim to identity theft in their dying days.
On behalf of Jennifer C. Rydberg, Attorney at Law posted in Estate Administration & Probate on Wednesday, April 25, 2012
Readers in the Seattle area who anticipate inheriting a loved one's individual retirement account may want to take note of some frequently disregarded considerations that can have serious inheritance tax consequences. As long as taxpaying beneficiaries act quickly and avoid some common mistakes, certain opportunities are available to increase the long-term value of an inherited IRA and avoid double taxation.
IRA assets and other retirement assets generally pass to heirs outside probate, so small but important considerations can be easily overlooked in the complexity of probate proceedings. Seeking professional advice during estate administration need not be overly stressful or expensive, and can save a bundle at tax time.
On behalf of Jennifer C. Rydberg, Attorney at Law posted in Long Term Care Planning on Friday, April 20, 2012
Seattle residents may remember Mike Wallace as the 60 Minutes news correspondent who commanded America's attention on some of the nation's most important stories over the course of a 60-year career. The venerable journalist's recent death at 93 years of age tells a story once again, and serves as a reminder of the importance of long term care planning.
The journalist, like one out of every eight Americans over age 65, suffered from dementia later in life. With advances in medical technology that enable Americans to live longer than ever before, the likelihood of experiencing mental decline has increased accordingly. Once an individual becomes mentally incapacitated, creating or changing an estate plan is no longer possible in the absence of other arrangements. Therefore, in order to make sure that end-of-life wishes are heard and met, estate planning instruments such as living wills and health care directives should be in place before dementia leads to incapacity.
On behalf of Jennifer C. Rydberg, Attorney at Law posted in Estate Administration & Probate on Thursday, April 12, 2012
Readers in King County may recall a previous post on this blog discussing estate planning options that provide for pets who outlive their owners. A recent court decision regarding a woman's will highlights the importance of thoughtful estate planning to avoid leaving pets stranded in the complexity of the probate process.
The elderly woman's will included a directive that her cat be euthanized after the woman's death, but the trustees of the her estate balked at the idea. When the trustees asked the probate court to invalidate the will provision, they called attention to the fact that the woman dedicated most of her $1.4 million estate to animal welfare organizations.
On behalf of Jennifer C. Rydberg, Attorney at Law posted in Long Term Care Planning on Friday, April 6, 2012
Last week's post, "Estate plans for King County's changing needs," reminded readers in the Seattle area about the importance of long-term care planning as American life expectancy continues to increase. A recent study about conflicting attitudes among doctors regarding end-of-life care further illustrates the importance of thoughtful and comprehensive estate planning as it relates to carrying out end-of-life wishes.
A survey of close to 700 doctors found that the majority of them reported being accused of murder after following their patients' wishes to withhold life-sustaining treatments. The study inspired one doctor to share his own experience of a similar situation. One of the doctor's colleagues essentially accused him of murder when he rightfully tried to follow his patient's advance directive by not administering artificial nutrition or hydration. The conflict between the doctors illustrates the risk patients could and likely will face if end-of-life wishes are not clearly expressed in estate planning documents.
On behalf of Jennifer C. Rydberg, Attorney at Law posted in Long Term Care Planning on Wednesday, March 28, 2012
King County readers may recall a previous post on this blog discussing the surprising percentage of Americans without wills. Even if King County stands ahead of the national curve when it comes to having wills prepared, area residents and Washingtonians on the whole are likely to face a variety of complicated estate planning challenges.
In the face of these obstacles, long term care planning devices such as advance directives, health care directives and living wills become increasingly important as components of a comprehensive estate plan.
On behalf of Jennifer C. Rydberg, Attorney at Law posted in Trusts on Wednesday, March 21, 2012
History buffs in Kent may be interested to hear about a recent conflict over a roughly 350-year-old will and the trust it created. William Paine, an English settler and merchant who built his wealth during English colonization in what is now the United States, left a will upon his death in 1660. In the will, Paine left a patch of coastal land for the benefit of local residents. The will stipulated that the rent from the land should be used to benefit public schools and that the land should not be sold.
In noting the desire to keep the land for the benefit of locals, Paine created a trust that has continued for the better part of four centuries. The kind of trust he chose typically does not take effect until the will's owner passes away.
On behalf of Jennifer C. Rydberg, Attorney at Law posted in Wills on Thursday, March 15, 2012
If King County follows the trend of a recent survey, more than half of area residents may be going through life without having prepared a will. An alarming 92 percent of adults under age 35 reported not having a will. The survey suggests that many people believe their estate assets will naturally pass to their children or other family members, but that isn't necessarily true.
In reality, probate laws unique to each state can have unexpected impacts on how estate assets get distributed to heirs. Not having a will can cause extra emotional strain for loved ones as they try to navigate the probate court process. It is recommended to develop a simple and effective estate plan early in life to ensure the well being of your family.
