Estate planning is one of the most important steps you can take to protect your assets, provide for your loved ones, and ensure your wishes are carried out after your death or if you become incapacitated. Whether you have a modest estate or significant wealth, a well-crafted estate plan can prevent family disputes, reduce taxes, and streamline the distribution of your property.
If you live in Spokane, Washington, this checklist will guide you through the essential steps to create or update your estate plan.
1. Understand the Basics of Estate Planning
Estate planning is more than just creating a will. It involves a variety of legal tools designed to protect your assets during your lifetime and ensure they are distributed according to your wishes when you pass away.
A comprehensive estate plan typically includes:
- A will – Directs how your assets will be distributed.
- Trusts – Can help avoid probate, provide tax advantages, and protect assets.
- Powers of attorney – Appoint someone to make financial and medical decisions if you become incapacitated.
- Advance healthcare directives – Outline your healthcare wishes.
In Washington State, estate planning laws have specific requirements, so it’s important to work with an experienced Spokane estate planning lawyer to ensure your plan is valid and enforceable.
2. Take Inventory of Your Assets and Debts
Before you create or update your estate plan, make a detailed list of your assets and liabilities. This will give you a clear picture of what needs to be included in your plan.
Your inventory should include:
- Real estate – Homes, rental properties, land.
- Bank accounts – Checking, savings, money market accounts.
- Retirement accounts – 401(k), IRA, pension plans.
- Investments – Stocks, bonds, mutual funds.
- Life insurance policies.
- Business interests.
- Personal property – Jewelry, vehicles, collectibles, heirlooms.
- Debts – Mortgages, loans, credit card balances.
Having a clear financial snapshot helps you and your attorney design a plan that reflects your priorities and covers all your assets.
3. Choose Your Beneficiaries
Your beneficiaries are the people or organizations who will receive your assets. Be specific when naming them to avoid disputes.
You may choose to:
- Leave assets to family members.
- Provide for close friends.
- Support charities or nonprofits that are important to you.
Make sure your beneficiary designations on life insurance, retirement accounts, and payable-on-death accounts match your estate planning documents. Inconsistent beneficiary designations can override your will or trust.
4. Create or Update Your Will
A will is the cornerstone of most estate plans.
It allows you to:
- Name a personal representative (executor) to handle your estate.
- Designate guardians for minor children.
- Specify how your property should be distributed.
In Spokane, as in the rest of Washington, a will must be in writing, signed by you, and witnessed by at least two competent witnesses. If you already have a will, review it regularly—especially after major life changes such as marriage, divorce, birth of a child, or acquiring significant assets.
5. Consider a Trust
Trusts can provide more control and flexibility than a will alone.
Common types include:
- Revocable living trusts – Allow you to manage assets during your lifetime and transfer them without probate after death.
- Irrevocable trusts – Often used for tax planning and asset protection.
- Special needs trusts – Protect government benefits for a loved one with disabilities.
A trust can help your heirs avoid the time and expense of probate, keep your affairs private, and provide ongoing management of assets.
6. Appoint a Financial Power of Attorney
A durable financial power of attorney lets you appoint someone you trust to manage your financial affairs if you become unable to do so. This can include paying bills, managing investments, and handling real estate transactions. Without this document, your family may have to go to court to get authority to act on your behalf.
7. Establish a Healthcare Power of Attorney and Advance Directive
A healthcare power of attorney gives someone you trust the authority to make medical decisions for you if you cannot speak for yourself.
An advance directive (also called a living will) spells out your preferences for end-of-life care, including life support, resuscitation, and pain management. These documents can provide clarity for your loved ones and healthcare providers during difficult times.
8. Review and Update Beneficiary Designations
Some assets pass directly to beneficiaries outside of your will or trust.
These include:
- Life insurance proceeds.
- Retirement accounts.
- Payable-on-death (POD) bank accounts.
Be sure to review and update these designations regularly, especially after major life changes, to ensure they reflect your current wishes.
9. Plan for Digital Assets
Today, many people have significant digital assets, including online bank accounts, email, social media profiles, and cloud storage. Your estate plan should address how these assets will be accessed, managed, and distributed.
10. Consider Tax Implications
Washington has a state estate tax that applies to estates valued at more than a certain threshold (adjusted annually). Federal estate tax applies to much larger estates. Strategic planning, such as gifting during your lifetime or using certain types of trusts, can help reduce tax burdens on your heirs.
11. Organize and Store Your Documents Safely
Keep your estate planning documents in a safe but accessible location. Provide copies to your personal representative, trustee, and anyone you’ve appointed to make decisions for you. Let trusted individuals know where your originals are stored.
12. Review Your Plan Regularly
Estate planning is not a one-time task. Life changes, such as marriage, divorce, the birth of children or grandchildren, changes in financial circumstances, or new tax laws, can affect your plan. Review your estate plan every few years or after major life events.
Contact Elevated Estate Planning, P.S. for a Consultation
Creating an effective estate plan requires careful thought, legal knowledge, and an understanding of Washington’s estate laws. At Elevated Estate Planning, P.S., we help Spokane residents design comprehensive, customized estate plans that protect their assets and provide for their loved ones. Whether you’re starting from scratch or updating an existing plan, we can guide you through each step and ensure your wishes are clearly documented. Contact us today to schedule a consultation at (509) 328-2150 and start building your Spokane estate planning checklist.