Are you considering establishing a trust in Spokane Valley, WA? Are you seeking to avoid probate, plan for incapacity, or address other concerns? A knowledgeable Spokane Valley trusts lawyer at Elevated Estate Planning, P.S. can explain your legal options. Contact us today at (509) 328-2150 for afree consultation.
A trust can help you protect your assets, provide for your loved ones, and ensure your wishes are followed. Whether you’re creating a revocable living trust or exploring other estate planning options, our legal team can help you develop a plan that meets your needs and provides peace of mind for the future.
Why Choose Elevated Estate Planning, P.S. for Trust Planning in Spokane Valley, WA?
Trusts protect your privacy and provide flexibility that a will simply can’t. But to select the right one for your situation, you need to work with attorneys with dedicated experience in estate planning.
Clients choose the Spokane Valley trusts attorneys at Elevated Estate Planning, P.S. because we provide:
- Customized estate strategies crafted specifically for your family structure instead of standardized templates
- Clear legal direction to make sure you fully grasp your estate documents
- More than 25 years of cumulative legal practice centered on trust creation and comprehensive estate planning
- Over 600 five-star reviews on Google from satisfied clients throughout the community
- A trust integrated with other planning tools, including wills, powers of attorney, and beneficiary designations
- Personalized client service and attention, and the option to enroll in an ongoing maintenance program to keep your plan in shape
Reach out to our office today to schedule a confidential consultation with a Spokane Valley estate planning lawyer. We are here to protect your peace of mind, now and in the future.
What Is a Trust?
A trust is a binding arrangement where a trustmaker (also called a grantor or settlor) transfers property to a fiduciary trustee to be managed for designated beneficiaries. In the trust, the trustmaker outlines specific directions governing distribution timelines and conditions for the remaining assets.
Under most revocable living trusts, the grantor serves as their own initial trustee and maintains complete authority over trust assets during their life. A designated successor trustee assumes the role only if the grantor dies or becomes incapacitated. Neither requires court oversight.
Since trust assets pass directly to named beneficiaries, they bypass the need for the Washington probate court process. This allows the successor trustee to handle distributions without public court record filings.
Types of Trusts Involved in Estate Planning
There are many different types of trusts. Different trust structures address unique legal needs and financial objectives.
- Revocable living trusts allow the creator to modify or cancel terms at any time while providing asset management during incapacity and avoiding probate at death.
- Irrevocable trusts are a binding legal trust that generally cannot be altered once executed. They provide asset protection from creditors and assist with long-term care planning.
- Special needs trusts are a specialized trust designed to provide financial resources for a beneficiary with disabilities without compromising eligibility for government assistance programs.
- Testamentary trusts are trusts established within a last will that take effect only after death and probate.
- Charitable trusts are an arrangement designed to support tax-exempt charitable organizations while managing tax benefits for the estate and remaining family members.
An experienced attorney can help you select the trust that is right for your plan and situation.
When a Trust May Be Preferable to a Will
Trusts and wills are two ways of dealing with property.
However, trusts offer several advantages over a traditional will, including:
- Bypassing probate court: Trust property transfers directly without court intervention, saving beneficiaries significant time and legal costs.
- Managing incapacity: A successor trustee can manage assets if you become incapacitated during life and avoid court-ordered guardianships.
- Managing multi-state real estate: Placing out-of-state real property inside a trust prevents estates from having to initiate multiple probate proceedings across different states.
- Controlling distribution terms: Allows distributions and scheduled asset releases over time based on specific ages or milestones.
Trust instruments are also private, confidential records that keep your family’s affairs out of court.
How a Trust Distributes Property After a Trustmaker’s Death
When a trustmaker dies, the named successor trustee will take over administration duties without court supervision, allowing for a much faster settlement process.
The trustee’s responsibilities include notifying beneficiaries of their rights, obtaining tax IDs, cataloging trust assets, paying valid debts and taxes, and distributing assets as directed by the trust.
Simple estates with liquid assets can often settle in a few weeks, while those involving real estate, businesses, or sub-trusts may take longer.
How a Trust Manages Incapacity of a Grantor
A key advantage of a revocable living trust is protecting the grantor if health issues prevent them from managing their financial affairs.
If the grantor becomes incapacitated, the successor trustee steps in immediately without court intervention to pay bills, support the family, and keep finances in order.
A standard will offers no protection during incapacity. Without a trust or power of attorney, relatives may have to handle costly, public court proceedings to establish a guardianship or conservatorship over the individual. A well-designed estate plan avoids the need for this.
What Other Documents Are Needed Alongside a Trust?
A revocable living trust forms the heart of a trust-based estate plan. However, additional estate planning documents are essential to round out the client’s legal rights and protections.
These include:
- A pour-over will that captures any misplaced assets omitted from the trust during your life and transfers them into the trust upon death.
- A durable power of attorney that appoints a trusted agent to manage financial affairs and non-trust property during incapacity.
- A health care directive that outlines your specific preferences regarding medical treatments and end-of-life care decisions.
- A medical power of attorney that designates a representative to make healthcare decisions if you cannot speak for yourself.
- Beneficiary designations coordinated with your insurance policies, bank accounts, and retirement funds.
Coordinating all documents with an experienced lawyer ensures your overall plan functions as intended and works hand in hand with the other documents.
Washington Gift Tax Limits and How Trusts Help Address Them
Washington state does not have a separate gift tax, but it does collect an estate tax on estates worth over a certain amount. Giving gifts during your lifetime reduces the overall value of your estate, which can help lower tax obligations for larger estates in Washington.
Under federal rules, you can gift up to a specific amount per recipient each year without filing a gift tax return or using up your lifetime exemption. Federal law also offers a lifetime gift and estate tax exemption of a certain amount. However, this limit can drop at any time.
Setting up a trust can help you manage these state and federal limits. An experienced trusts attorney can help you structure your gifts to protect your wealth and lower your tax burden.
Can a Trust Be Challenged in Washington?
Yes. Interested parties can contest a trust in Washington Superior Court by proving specific legal grounds.
Common grounds for challenging a trust include:
- Lack of capacity, meaning the trustmaker lacked the mental capacity to understand the document and its effects when signing.
- Undue influence, meaning a trusted individual pressured the trustmaker into terms that didn’t reflect their true intent.
- Fraud, meaning the trustmaker was deceived regarding the document or material facts.
- Improper execution, meaning the document failed to comply with Washington signing and witnessing requirements.
- Mistake, meaning a drafting error fails to express the trustmaker’s actual intentions.
Trust contests are generally less common than will contests because revocable living trusts are administered outside of public probate court. Including a no-contest (in terrorem) clause can also discourage frivolous challenges by forfeiting a contesting beneficiary’s inheritance if they lose (although these are not always enforceable).
Working with a skilled estate planning attorney to draft and execute your trust provides the strongest protection against legal challenges. Documenting clear mental capacity and establishing proper signing procedures can help guard your wishes against future claims of undue influence.
What Does a Spokane Valley Trusts Lawyer Do?
A trust attorney guides you through every step of the planning process to ensure your assets are fully funded, properly protected, and integrated with the rest of your estate plan.
A Spokane Valley trusts lawyer will assist you by:
- Selecting the right trust structure
- Drafting precise trust terms for successor trustees, incapacity planning, distribution schedules, etc.
- Selecting appropriate fiduciaries to manage estate affairs.
- Funding your trust properly
- Coordinating beneficiary designations
- Integrating supporting documents
- Updating your estate strategy
A trust that is improperly drafted or unfunded cannot safeguard your assets. Working with attorneys focused specifically on estate planning gives you confidence that your estate documents will protect your family when needed most.
Contact a Spokane Valley Trusts Lawyer for a Confidential Consultation
Establishing a valid trust can help protect your family’s financial future. At Elevated Estate Planning, P.S., our legal team has decades of combined legal experience building estate plans for Spokane families. With over 600 five-star client reviews, we are a trusted firm for clients’ most important estate planning decisions.
Contact our office today to schedule a private consultation with a Spokane Valley trusts attorney to learn more about your options.