If you own real estate, one of the smartest estate planning moves you can make is figuring out how to avoid probate. Probate is the legal process of transferring your assets after you pass away, and while it’s sometimes necessary, it can also be time-consuming, expensive, and public. Fortunately, there are two simple ways to keep your property out of probate — especially if you live in Washington State. 1. Use a Transfer on Death Deed A Transfer on Death…
Many people assume that life insurance proceeds automatically bypass estate taxes. That’s not always true — and it can lead to unexpected tax consequences if you’re not careful. I’m Christopher Small, owner of CMS Law Firm in Washington State. We specialize in estate planning and probate, and today I want to share an important tip about life insurance and your estate. Life Insurance and Estate Taxes A common misconception is that life insurance proceeds aren’t included when calculating your estate…
Managing an IOLTA (Interest on Lawyers’ Trust Accounts) correctly is essential for any attorney, but it’s especially critical for personal injury lawyers handling settlements. Mismanaging these funds can lead to serious ethical and legal issues, so it’s important to understand the proper flow of money. Here’s a clear explanation based on a recent client case we encountered. Understanding the Proper Flow of Settlement Funds We recently started working with a personal injury attorney who was unknowingly moving money from…
When it comes to owning property with someone else, the way you hold title matters — especially for estate planning. Two common forms of ownership are joint tenants with rights of survivorship (JTWROS) and tenants in common. Understanding the difference can prevent unintended consequences for you and your heirs. I’m Christopher Small, owner of CMS Law Firm in Washington State. We specialize in estate planning and probate, and I want to clarify how these ownership types work. Joint Tenants with…
Not all trusts are created equal. In fact, one type of trust can actually cause more hassle than it solves. If you have this type of trust, it’s time to reconsider your estate plan. I’m Christopher Small, owner of CMS Law Firm in Washington State. We specialize in estate planning and probate, and I want to explain why testamentary trusts can be problematic. What Is a Testamentary Trust? A testamentary trust is a trust that exists inside your will. Essentially,…
Happy Sunday! Hopefully you’re having a great weekend, even though the cold and rain of the season has appeared to settle in. Have no fear, though, what I’m about to tell you about irrevocable trusts is sure to warm your heart. :) A couple of weeks ago I did a newsletter about revocable trusts and the benefits (a lot) and costs (basically none) and someone asked me to do the same thing for irrevocable trusts. Your wish has been granted….
Many people worry about taxes when they inherit assets. As an estate planning attorney, I get asked this question all the time. I’m Christopher Small, owner of CMS Law Firm in Washington State, where we specialize in estate planning and probate. Let’s break down what you need to know about inheritance and taxes. Most Inheritances Are Tax-Free In general, beneficiaries do not pay income tax on the assets they inherit. This includes: Life insurance proceeds – the payout is received…
