The new year is all about fresh starts and taking care of the things that matter most. In other words, it’s the perfect time to tackle those “I’ll get to it later” items on your to-do list. If sorting out your estate planning isn’t already on there, it’s time to add it. Creating or updating a will and trust might not sound exciting, but it’s one of the simplest and most meaningful ways to make sure your loved ones and your assets are taken care of when you’re gone. And no, estate planning isn’t just for billionaires or celebrities — it’s for everyone. Keeping this in mind, let’s talk about why estate planning matters, specifically wills and trusts for the purposes of this blog post, and how it works so you can head into 2025 with peace of mind.
Why You Need a Will
A will isn’t about how much you own; it’s about making sure your wishes are clear about what you own and more. You can decide who inherits your property — your kids, close friends, or a favorite charity — and, just as importantly, who doesn’t. You can decide who your minor children’s guardian would be if their other parent is dead or would be unable to care for them in your absence. If you’re worried about certain family dynamics or relationships, a will lets you spell out exactly how you want things handled. Whatever the situation, think of a will as your way of speaking up even when you’re not there.
Where there is no will (dying “intestate”), Washington state’s succession laws will take effect. While these laws were designed to divide assets among close relatives, they were not designed to take into account personal relationships or situations. So, if you’ve got a blended family, kids from previous relationships, or any specific wishes, you’re taking a risk by relying on laws that weren’t written to address the nuances.
How to Create a Will in Washington State
It’s not all that complicated to create a will in Washington state when you have the guidance of a seasoned estate planning attorney. A will can be handwritten or typed, but regardless, a will must include your signature and two witnesses’ signatures to make it official. Once you complete your will and you know your intentions are clear, you’ll likely feel a weight lifted off your shoulders just knowing your family won’t be left guessing or disagreeing.
What a Revocable Trust Can Do
If you’re looking for added protections, a revocable trust is another estate planning document you might want to consider. Unlike a will, a revocable trust helps you manage your assets while you’re alive and makes the transfer process smoother when you’re not.
Once your estate planning attorney sets up a revocable trust to be a part of your estate plan, you’ll move your assets into it. Next, you’ll decide who will manage and receive those assets. The best part? You’re in charge as long as you’re alive and mentally competent, meaning you can change the rules, take assets out, or even dissolve the trust if your situation changes or you just change your mind.
One significant advantage of a revocable trust is that it helps your beneficiaries avoid probate. Probate is the legal process of distributing your assets after you pass away, and while it’s not the nightmare some make it out to be, it can be time-consuming and public. With a trust, your assets go directly to your beneficiaries, with no waiting or extra steps. That said, revocable trusts don’t come with tax perks while you’re alive. The assets are still considered yours for tax purposes, so you won’t see this type of savings.
What an Irrevocable Trust Can Do
An irrevocable trust is a more considerable commitment, one that comes with the tax benefits a revocable trust does not. Unlike a revocable trust, however, you can’t change or cancel an irrevocable trust once it’s set up (except in very rare cases).
Once you move your assets into an irrevocable trust, they won’t be considered your personal property. This means they’re inaccessible to creditors. Also, depending on the value of your assets, an irrevocable trust could shield your assets from Washington’s estate tax. For families with significant assets, this is advantageous.
Testamentary Trusts vs. Irrevocable Trusts
Some people choose to include a type of irrevocable trust in their will called a testamentary trust. The difference between an irrevocable trust and a testamentary trust is that the latter isn’t actually created until after the testator’s (the person who created the will) death.
A testamentary approach allows you to retain control of your assets during your lifetime because you always have the flexibility of changing your will and getting rid of the testamentary trust altogether. However, with a testamentary trust, you would still have the peace of mind that should you die, it would provide your beneficiaries with some of the protection a separate irrevocable trust would, mainly protection from probate.
The Whys Behind Setting Up a Trust
Not all trusts are created for their tax benefits or to avoid probate. Some are designed to provide certain protections in very specific situations.
For example, if you’re worried about a beneficiary’s ability to manage money, you could set up a trust that gives them an annual income rather than a lump sum. This way, you’re supporting them without risking them overspending or getting into financial trouble.
If you have a family member with a challenge, a special needs trust can provide for their care without affecting their eligibility for government benefits. It’s a way to give yourself the peace of mind that your loved one will receive the care they need for however long you desire.
And yes, if you’re a pet lover, you can even set up a trust so that your furry friends are cared for after you’re gone. While you can’t leave money directly to your pets as pets are property under Washington state law, you can designate funds to cover their expenses and name a guardian to look after them.
The bottom line is that specialized trusts show just how personal and creative estate planning can be. Whatever your priorities, there’s likely a way to reflect them in your estate plan.
Why You Should Create a Will and Trust Now
It’s easy to push estate planning to the back burner. No one likes thinking about what happens after they’re gone, and life gets busy. But here’s the thing: Taking care of your estate planning today means you won’t have to think about it later. You’ll know your family is protected, your wishes are clear, and your hard-earned assets will go exactly where you want them to.
The new year is a perfect time to handle these matters because it’s a natural moment to reflect and plan for the future. Whether you’re starting from scratch or revisiting an old will and trust, taking this step will show your loved ones how much you care.
Find a Seattle Estate Planning Attorney Who’s Experienced Drafting Wills and Trusts
What will happen when we die to our loved ones, our money, and whatever else we’ve worked so hard to accumulate is often not a top priority for people because it can feel like a downer. However, getting your affairs in order while you’re healthy can be exhilarating since you’re buying yourself peace of mind.
At Elise Buie Family Law, besides being lawyers, we are family members — mothers, fathers, grandparents, sisters, brothers, friends, and pet parents, so we get it. We get you.
Ready to talk to someone on our Seattle estate planning team? We are here to guide you through the entire estate planning process and help you put together a plan that fits your life. And with a bit of time and effort, you, too, can make 2025 the year you finally check this off your list and move forward confidently. Call our Seattle office or schedule a time to speak with us here.
