When most people think about estate planning, they focus on creating a trust to protect their assets and ensure their wishes are followed after they’re gone. But as the recent situation with Jimmy Buffett’s estate shows, setting up a trust is only part of the story. The choice of trustees—especially co-trustees—can make or break how smoothly things go. The Jimmy Buffett Trust Dispute: A Cautionary Tale Jimmy Buffett, famously known for his hit song Margaritaville, had a trust in place…
Happy Sunday! Today is a great day because we have some NEW estate planning stuff to talk about! As you probably heard, Congress approved and President Trump signed into law the Big Beautiful Bill last week, and inside were two very important estate tax updates. First, the bill extended the current estate tax exemption ($15m per person, $30m if married) amount into the future. If you recall, without this new legislation, the tax rates would have reset to their previous…
Estate planning can be complex, especially when it comes to state-specific taxes like Washington’s estate tax. But here’s a lesser-known strategy that many people overlook—one that could significantly reduce your estate tax burden. Simply put: moving out of Washington state. Understanding Washington State Estate Tax Washington state imposes its own estate tax separate from the federal estate tax. This can catch many people off guard, especially if they have significant assets. The key point is that estate taxes are generally…
If you’re looking for an advanced yet straightforward way to reduce estate taxes, an Irrevocable Life Insurance Trust (ILIT) might be the solution. This strategy is especially popular among Washington residents who face higher state estate taxes, but it can be beneficial no matter where you live. What Is an Irrevocable Life Insurance Trust? An ILIT is a specific type of trust designed to hold a life insurance policy outside of your taxable estate. Because it is irrevocable, once you…
If you’ve inherited an IRA in the past few years, the rules for how you take money out of it have changed — and the IRS has recently clarified some key points. Understanding these updates can help you avoid costly mistakes and ensure you comply with distribution requirements. The General Rule for Inherited IRAs When you inherit an IRA, your withdrawal obligations depend on the age and Required Minimum Distributions (RMDs) status of the original account holder at the time…
Happy Sunday! I’m reading this book called “Alchemy: the dark art and curious science of creating magic in brands, business, and life”, and one of the overriding concepts of the book is that we often do things for irrational reasons. By irrational I mean they don’t necessarily make sense, even though they are good for us. For example, most people don’t brush their teeth to keep their teeth clean – they want fresh breath. That’s why most people don’t brush…
When it comes to estate tax planning, the idea of making “deathbed gifts” — gifts made shortly before you pass away — can sound extreme. But in Washington state, it can actually be a viable strategy to reduce your taxable estate. How Deathbed Gifts Work in Washington State Washington state estate tax law allows you to give away as much as you want at any time, including right up until the moment of death. Any assets you give away before…
