A life insurance trust can be a good strategy for avoiding estate taxes because it removes the proceeds of a life insurance policy from the taxable estate of the policyholder. When a person dies, the value of their estate is subject to estate tax, which can be a significant expense. However, by transferring ownership of [...]
Probate is the legal process by which a deceased person’s debts are paid and their assets are distributed. In Washington state, the probate process is governed by Revised Code of Washington, Title 11. Here are some things to know about probate in Washington: Small estates may not need to go through probate. If the total [...]
A credit shelter trust, a bypass or exemption trust, is a type of trust used in estate planning to reduce the amount of federal or Washington estate tax owed by a deceased person's estate. Washington state has a state-level estate tax with an exemption amount of $2,193,000 per person (as of 2023). The federal estate [...]
How do creditors get paid after someone dies? There are three options in Washington state, two of which I will discuss here: 1) Wait and See; or 2) Publication of a Notice to Creditors. I very strongly recommend option 2. In Washington and depending upon which of the above options you select, creditors will have [...]
