“Estate Planning 101—Basic Documents: Wills & POAs” April 24, 2010 For Seattle Chinese School PTA SeminarBellevue, Washington By Steve Chianglin, Esq. Chianglin Law Firm, PLLC 12501 Bel-Red Rd., Suite 209 Bellevue, WA 98005 Information contained herein shall not be construed as legal advise but merely as information only. Nothing herein is intended to create any client-attorney relationship.
EASY QUESTIONS FOR YOU How many of you are married? How many of you have children? How many of you have children under 18? How many of you have children over 18?
HARDER QUESTIONS FOR YOU How many of you know who is going to handle your estate if you die? How many of you know who is going to take care of your children if you die? How many of you will trust your 18 year old or college child with all of your assets? How many of you know who is going to take care of YOU if you are disabled?
MAIN POINTS: Control Predictability Protection OTHER POINTS: (i) Estate Taxes Reason for Estate Planning
Other Points: Estate Taxes Two Estate Taxes: Washington State 2 Million – 10% 9 Million – 19% Federal 2010—0% 2011—1 Million or likely to be more than 3.5 Million—37%
MAIN POINTS • Control • Predictability • Protection
MAIN POINTS CONT… • Control WITHOUT A WILL or ESTATE PLAN, NOT ONLY WILL YOU NOT BE ABLE TO PLAN (i) HOW TO DIVIDE YOUR ASSETS, (ii) WHO IS GOING TO RAISE YOUR KIDS, (iii) WHO IS GOING TO GUARD YOUR ASSETS, BUT YOU ALSO EXPOSE YOURSELF AND YOUR FAMILY TO CERTAIN RISKS AND ALLOW THE COURT SYSTEM OR STRANGERS THE ABILITY TO MAKE DECISIONS ON YOUR BEHALF.
MAIN POINTS CONT… INTESTATE: If someone one dies without a Will, that person dies “intestate”: The Court turns to State law under RCW 11.04 to distribute assets. --Intestacy can becomes quite complex if community property and separate property exist and if decedent has siblings, parents, grandparents, etc. --If Decedent has Separate Property, then at times if the Decedent has siblings, then the siblings may inherit even if there is a surviving spouse. GENERAL RULES: • If you are survived by a spouse: • Your one-half of your and your spouse's community property will pass to your spouse. • Your separate property will pass: • If you are survived by children, one-half to your spouse and the other half to your children • If you are not survived by children, three-quarters to your spouse & the other quarter to your surviving parents or, if none, to your parents children (ie, your brothers and sisters). • If you are not survived by either children or parents or their children, all to your spouse. • If you are not survived by a spouse: • All to your surviving children or, if none • All to your surviving parents or, if none • All to your surviving brothers & sisters etc.
MAIN POINTS CONT… • Control Cont… Ex: Children. Problem of Majority Problem of Handling Your Money Problem of Accidents Ex: Spouse. Issue of re-marriage Issue of influence
MAIN POINTS (ii) Predictability Your Estate Assets; Key Personnel of Your Estate: Personal Representative; Guardian/Custodian; Trustees; and Powers of Attorneys
MAIN POINTS • Protection With control and predictability, you’ll have higher level of protection of your children and your estate.
MAIN POINTS • Solutions: Estate Planning with Wills and Trusts will allow you to address these concerns.
Solutions: Will or Trust i. Personal Representative ii. Trustee iii. Custodian/Guardian Powers of Attorney i. Financial ii. Health
Conclusion • Estate Plan is to protect your family and ensure predictability. QUESTIONS?
ADDITIONAL INFORMATION PLEASE CONTACT: Steve Chianglin, Esq. Chianglin Law Firm, PLLC 12501 Bel-Red Rd., Suite 209 Bellevue, WA 98005 Tel: 425-451-4945 Fax: 425-451-4318