Clearer Trustee Duties

Posted on December 2, 2011 by John Hugg

Effective January 1, 2012, a number of changes to Washington law pertaining to trusts and estates will become effective. One of these changes is the codification of a trustee’s duty to notify the beneficiaries of the existence of a trust and keep those beneficiaries informed regarding the trust’s administration. This rule will apply to irrevocable trusts established after December 31, 2011, and to revocable trusts that become irrevocable after this date. Another important component to this change is that the maker of a trust, otherwise known as a “trustor”, cannot relieve the trustee of this duty. Previously, the law has been a bit unclear as to what, when and to whom information about a trust and its assets has to be provided.

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Advance Directives Seminar

Posted on October 31, 2011 by John Hugg

On Wednesday, December 14, 2011, at 10:00 a.m., I will be conducting a seminar on Advance Directives at the Mill Creek Senior Center in Mill Creek, Washington. The class focuses on all aspects of Powers of Attorney, Living Wills and the POLST form. The program is sponsored by Evergreen Healthcare.

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Explain Why You Gave One Child More

Posted on September 15, 2011 by John Hugg

A number of my clients leave different amounts to children via their Wills. In my experience, this occurs most often after parents give one of their children money to help out while they are alive, but not all children. The thought behind giving more through a Will is to give the child who did not receive money while mom and dad were alive a little more at death to equal things out. Of course there can be other reasons for unequal bequests including estrangement or other non-financial issues. A recent Wall Street Journal article notes that when this situation occurs, you should take steps to reduce the likelihood of conflict. Two good ways to reduce the likelihood of a Will contest are writing or videotaping an explanation of the unequal distribution and, under certain circumstances, taking additional steps to show a clear mind when you signed the Will.

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Is Gifting Right For You?

Posted on September 12, 2011 by John Hugg

For many people, making large gifts to children and grandchildren may not be the wisest action to take. For example, if you are a married couple aged 70 with a nicely sized combined estate, gifting may ultimately do more harm than good. Remember that if you are now on a fixed income, inflation will significantly eat into your purchasing power over time. Also, certain costs have historically increased far faster than the overall rate of inflation. Long term care is one such cost. Medical expenses are another fast rising cost. So before you give everything away, think about how much money you will really need to live on during your golden years.

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Business Succession Planning Tips

Posted on September 4, 2011 by John Hugg

If you are planning to pass your business to your children here are some tips and options you may want to consider:

  • Carefully evaluate the interest and desire of the next generation to work in the business. If a child lacks the necessary interest and desire he or she will certainly fail to maintain the company.
  • Turn over control slowly and over time. This will enable the second generation to become familiar with the business and the challenges of running it, allow children to make mistakes without jeopardizing the enterprise and allow you to make course corrections if the chosen heir is not working out.
  • Structure a transfer that requires the next generation to “earn” the company. Set up a purchase over time so you receive much needed cash for retirement, the child or children get the business while learning it has to be earned – it is not merely a gift.
  • Consider having family members who do not participate in running the business be creditors rather than owners. Non-participating family can receive a stream of income while not negatively affecting management of the business.
  • Communicate with all family members about what you are doing and why.
     
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Bothell's Second Annual Senior Celebration

Posted on August 30, 2011 by John Hugg

Once again the City of Bothell, the Bothell Chamber and a variety of local businesses look forward to honoring our greatest generation.

On Tuesday, September 13, 2011, come take a stroll down Main Street, visit the shops, the restaurants and celebrate our seniors. Enjoy free give-a-ways, food, shopping, discounts, historical tours, entertainment, prizes and more. If it’s anything like last year, you may even find yourself dancing in the street! The City will wrap up the festivities with its annual dedication of Senior Citizen’s Day.

We welcome all seniors and their families. The activities begin at 9:00 a.m. and conclude just after 2:00, so come for an hour or make it a day. In addition to free parking, a shuttle service will run from various retirement communities, and the Northshore Senior Center will provide additional shuttle service to and from Downtown Bothell at regular times throughout the day. Come join us! You won’t want to miss this special event!
 

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Summer Estate Planning Presentation

Posted on August 1, 2011 by John Hugg

This Wednesday, August 3, 2011, I will be conducting another “Are Your Affairs In Order?” class at the Maltby Church in Snohomish, Washington. The class focuses on all aspects of Wills, Trusts, Powers of Attorney and Living Wills. The program is sponsored by Evergreen Healthcare.

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Tips in Creating Your Power of Attorney

Posted on May 24, 2011 by John Hugg

The Wall Street Journal recently ran an article about Durable Powers of Attorney and their potential for abuse. The article set out several recommendations to ensure your Power of Attorney will be honored and adhered to, as well as tips to minimize the potential for fraud. Among the recommendations:

  • Use different Power of Attorney documents for the different states in which you may reside;
  • Require regular reporting of financial transactions and investments to remaining family members;
  • Have all children agree or consent to certain major financial decisions;
  • Check with your bank or other financial institution to make sure the form will be honored; and
  • Limit access or the original Power of Attorney document.

Given the potential for abuse in this area, it is almost always a good idea to build in more safeguards than less.
 

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POLST Forms

Posted on May 20, 2011 by John Hugg

I get a fair number of questions about the POLST form. So here’s a brief synopsis. POLST stands for Physicians Order for Life Sustaining Treatment. The POLST form is not a substitute for an advance directive, or Living Will, but is intended to “summarize” a person’s wishes regarding life sustaining treatment. The form is not created by an attorney. It is supposed to be provided only by a physician and to be effective must be signed by both the patient and physician. The form contains sections covering administration of CPR, other medical interventions, administration of antibiotics, administration of artificially provided nutrition and a summary of goals. As with most everything the POLST form is appropriate for some people and not others. So give some thought as to when and under what circumstances you should complete the form.

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Spring Estate Planning Events

Posted on April 5, 2011 by John Hugg

In addition to the seminar on Advance Directives I am scheduled to give on April 15 at the Peter Kirk Community Center in Kirkland that was already posted, I am also speaking on general estate planning topics at two additional events. One is on April 21, 2011, from 6:30 p.m. to 7:30 p.m. at the Northshore Y in Bothell and the other is on May 11, 2011, at the Redmond Senior Center in Redmond, Washington.

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