Lynnwood Law Blog

Among the many reasons why people in Seattle may put off the process of estate planning is due to a fear of upsetting their beneficiaries because of their decisions. Yet the alternative is putting the matter completely at the mercy of state law. Those who are concerned that their estate decisions may prompt discord may want to consider including an added degree of enforceability to their wills. This can be done by including language that amounts to a "no contest" clause. 

No contest clauses are provisions in a will that present the potential for penalties to be leveled towards designated beneficiaries who challenge the validity of one's will. These penalties can include one seeing their interest in an estate distributed elsewhere, effectively disinheriting them. The purpose of such a clause is, of course, to deter beneficiaries from starting a dispute. Some may question, however, whether these clauses are actually enforceable. 

If you are one of the many people in Washington State who has not only created but regularly maintained and updated your estate plan, you should feel quite good about this. It can provide great peace of mind knowing that you have your affairs in order. However, have you also taken the time and made the effort to discuss your plan with your family members? If you have not done this, your estate and your family could be headed for trouble you would not want to imagine.

As explained by AARP, holding family discussions about a person's estate plans should be considered part and parcel of making the plan in the first place. Family disputes can arise even when all plans and wishes are clearly outlined in wills, trusts or other ways. One set of siblings spent eight years in litigation before resolving how they would split up a vacation home and some land. Whether the vacation home on the San Juan Islands or a primary residence in Tacoma, people in Washington State should be sure their children know how things will be taken care of ahead of time.

When people hear the term "elder abuse," their thoughts often are turned to cases where elderly people who are in a vulnerable state are abused physically and emotionally. However, elder abuse can also be sexual and financial. When family members in Seattle are entrusted with making financial decisions for elderly loved ones, they are under the obligation of the law to conduct their decisions in a way that would have satisfied their incapacitated family member. Failure to do so can be damaging to relationships and also result in costly legal consequences. 

According to the Centers for Disease Control and Prevention, financial abuse can result when people use forgery, coercion, theft and misuse of power of attorney in exploiting an elderly individual. Often, people who have been entrusted with making financial decisions for their elderly family members have access to view sensitive information of that individual including data about personal benefits, assets and other belongings. If they misuse this information or keep their elderly loved one from viewing that information, they are abusing their power. 

You've spent the last three decades building your business up, but now it's time to pass it down. You want to keep it in the family and hand it off to your children. They'll get it along with the rest of your estate, from the family home to your investments.

However, you know that passing on a business can be far more complicated than splitting up money or traditional assets. What do you need to know about this process?