Planning for the Unthinkable

Planning for the Unthinkable

               Many people simply don’t want to think about unpleasant topics like what will happen when you die, or what will happen if you get so sick or injured that you are unable to make your own decisions.  Can’t really blame people for side stepping these issues, but the responsible thing to do is get it over with and do the right thing.

               Even if you don’t have much now, that doesn’t mean that when you pass away there won’t be important assets and debts that need to be addressed.  If you don’t take the time now to plan ahead, you will get what the Washington State Legislature determined should happen in cases where there is no will or an invalid will.  This result can be very different from what you would want to have happen, and there is really nothing anyone can do about it after the fact.  There can also be serious tax issues that if not appropriately addressed, can really bite into your estate.   Creating a well crafted will can ensure that your wishes are carried out with a minimum of heartburn for your family.

               If you are so ill or injured that you can’t make your own health care and financial decisions, you can plan ahead and appoint and direct the person or persons you want to make these decisions for you.  If you don’t plan ahead, you tend to get the first person that goes to all the trouble and expense of asking a court to grant them these powers.  Not only may this not be the person you want to make those important decisions, but it will cost a lot more money than if you had taken some simple steps now.

               Estate planning is really pretty simple and not nearly as expensive as you might think.  Now is the time to set up an appointment and get the guidance on how to best achieve your goals.  In all the years that I’ve been helping people with estate planning issues, I’ve never had anyone not feel much better about themselves after it’s completed. 

The Holiday Season and the Law

The Holiday Season and the Law

                It’s that time of the year again – holiday parties, evenings with friends and family, and celebrations that can get you in trouble.  The Washington State Patrol alone makes 20,000 DUI arrests each year, and it’s all over the news that most law enforcement agencies have stepped up DUI patrols this month.  Now is a good time to give some thought to what you should do if you are caught up in one of those stops.

                I’ve said it many times before, but it’s worth repeating – don’t volunteer to take any field sobriety tests if you are stopped by an officer.  These are purely voluntary tests, and you will not benefit from taking them.  Also, be polite and cooperative with the officer, but do not answer any questions that relate to where you have been or how much you have had to drink.  Providing your driver’s license, proof of insurance and registration are just fine, but don’t get into a conversation with the officer, just keep any discussion to the bare minimum.  If you take the voluntary field sobriety tests and/or discuss how much you have had to drink with the officer, it will be used against you in court.  I don’t care how nice the officer seems, or that the officer “just wants your cooperation so her or she can get you on your way”, what the officer is really doing is collecting evidence to be used against you.

                If you are taken into custody, the officer will generally read you your constitutional rights while you sit in the back seat of the patrol car.  Listen to your rights, and immediately ask to speak with an attorney.  When you get to the police station, keep in mind that you need to talk to an attorney before you sign anything or answer any questions about your physical condition.  They have defense attorneys on call that you can speak with any time day or night.  Talk to the attorney, and follow his or her advice.

                You will almost certainly want to take the breath alcohol test at the police station.  Refusing to take the test will subject you to higher penalties, and will make your defense all that much more difficult.  If you follow the attorney’s advice, you should get through the ordeal without too much trauma.

                The next day you need to call an attorney and set up a consultation.  There are very tight time constraints that can mean a significant suspension of your license if you don’t get help right away.  Depending on the jurisdiction, it could be months before you are formally charged with the DUI, but that doesn’t mean that you can just ignore the situation.  The Washington State Department of Licensing will suspend your license, and unless you take immediate action there isn’t much that can be done to prevent the suspension.

                Please have a great holiday season!  I hope that everyone stays on the right side of the law, but if something happens please remember my advice.  A DUI can have very negative long term effects on your life, school, and work.  The costs that come with a DUI can be immense and long term.  Know how to defend yourself from self incrimination, and how to give your attorney the best chance possible to obtain a positive final outcome.

Spending time with your children during the holidays

Spending time with your children during the holidays         

               The Thanksgiving thru New Year holidays may seem a ways off, but now is the time to work out any disputes over where your children will spend the school break and/or holidays.  Waiting to the last minute can often mean that nothing can be done to enforce your Parenting Plan rights this year.  It usually takes at least 3 weeks or more to get into court, if you must get a court order to resolve a dispute.  Many Parenting Plans include a dispute resolution section that requires mediation or other vehicle for dealing with differences in opinion regarding the language in your order.

               Often times a Parenting Plan is signed by a court when the children are quite young.  As they get older, it may be more difficult to enforce provisions for visitation that better applied to little kids.  Sometimes the parents move on with their lives.  New spouses, children from a new relationship, or someone has moved out of the area.  Each of these problems can be resolved, but someone needs to take the initiative to get the Parenting Plan updated.

               More often than not, the parents can work thru their issues and agree on changes to the Parenting Plan.  In this situation, it important to do more than agree.  A new Parenting Plan needs to be drafted and entered with the court.  If you just leave the changes an informal agreement, it can be very difficult to enforce the agreement at a later date.

               When the parents cannot agree on changes to the Parenting Plan, it may be necessary to ask a court to make the changes.  This does not have to be a major battle, but either way, a court will consider your issues and render an order. 

               A properly drafted Parenting Plan can be tailored to the specific needs of your family.  There really isn’t a “one size fits all” approach that is likely to address your needs and issues.  Taking the time to talk to a family law attorney can help you understand what your realistic options are, and how to best achieve them at a reasonable cost.

College and the Parent's Responsibility

College and the Parent's Responsibility

College and the Parent’s Responsibility

It is getting to be that time of year when some of us are looking forward to children graduating this next June.  For many, this can mean concerns about the payment for college, trade school, and other post-secondary education.  Will the other parent pay a share, how much, etc.  These are all important questions, and the time is right to get answers.

Most Orders of Child Support include language that limits when a parent can ask a court to make a decision on post-secondary support.  Usually, you must bring this petition before the child turns 18 or graduates from high school, whichever occurs last.  From a practical standpoint this does not give you a lot of time.  Sure, you can wait until next May to take action, but the case will not likely be resolved before school starts next September.  What a court wants to see is that the child has been accepted at the school he or she plans to attend, before the court will enter a post-secondary support order.  Admission letter generally go out from October to January, so the window is now open to take a look at what needs to be done to ensure appropriate payment for your child’s education expenses.

I have seen too many cases where promises are made, but when it comes time to make good on the promises nothing happens.   I have seen too many cases where the correct advance planning did not take place.  I have seen too many cases were the parent simply waits too long to take action. 

A consultation with an experienced family law attorney can get you going in the right direction with plenty of time to get it right.  Even if the parents have reached an agreement, putting it into a valid order of the court will “cement” the agreement and make it clear what is expected of the parents and child.  If legal action is required, talking to an attorney will help you understand what needs to be done in advance to better ensure a reasonable result.

Planning Parenting When You're Not Married

Planning Parenting When You’re Not Married

               It happens all the time.  It could be a long term relationship or it could be a very brief relationship, but what happens when a child is born?  Many people try to “deal” with the situation through self-help.  I’ve seen many cases, and addressing issues through promises and informal agreements seldom work for long.

               The law provides for back child support to be assessed for up to 5 years.  This can place a parent in a situation where all the groceries, rent, bills paid, clothes, toys, etc. are characterized by the court at a later date as gifts and not child support.  I have seen parents saddled with over $30,000 in back child support, and required to pay future support.  I have seen parents “work out” a parenting arrangement that seems to suit their needs when the child is young, but falls apart as the child gets older.  A common issue that I see is one parent simply refusing to allow visits by the other parent.  This can be anger over that parent having a new person in their lives, the desire to coerce a parent into obeying his or her rules and demands, or for no real reason at all.

               The appropriate and safe thing to do is to get court orders that protect all parties right away.  This will give both parents legally enforceable rights, and make clear each parent’s responsibilities.  This process does not have to be a battle, it can be a cooperative and constructive process that can really help the parents build the kind of trust necessary to co-parent.  The orders that come out of this process can be drafted to reflect the evolving needs of the child, and help reduce conflict later in the child’s life.  It is the responsible thing to do, and it is the right thing to do for the child.

               Especially in cases where the parents have grown apart or never really had a close relationship, the appropriate court orders can set a framework for future parenting decision making.  In so many cases, the parents eventually move on to build new relationships and new families.  When parenting issues are first addressed at that time, the demands of these new relationship can get in the way of coming up with a plan that is focused primarily on the best interests of the child.

               If you are expecting a child or if you have a child where the support and/or visitation is unresolved, a consultation with a family law attorney can really help you understand the complexities of crafting a workable solution.  Rarely will the problem just “go away”.  It is up to you as the parent to ensure that right things are done to protect your child

Changing the Amount of Time You Spend With Your Children

Changing the Amount of Time You Spend With Your Children

               This is commonly the time of year where many parents reconsider where their children live the majority of the time, or reconsider how much time the children live with each parent.  This may be because one parent has the children with them more of the time during the summer, or because the school year is just around the corner, but regardless of the reason, this is a hot topic right about now.

               If the parents are in agreement on any changes to their Parenting Plan, making these changes can be pretty simple.  It is important to formally make these changes in a new Parenting Plan.  Just informally adopting changes can lead to conflict later, and entering a new Parenting Plan will ensure that both parents’ rights are protected.  I have seen informal changes to visitation schedules go very wrong over time.  When these agreements break down, the court can be left with no real idea of who is telling the truth about the informal agreement.

               If one parent is looking to modify the Parenting Plan, legal guidance is essential.  The law in Washington is very detailed about when a change is possible and under what circumstances these changes are appropriate.  In many cases, some prior planning can significantly improve your chances of successfully modifying the Parenting Plan.  If an emergency exists and the safety of a child is at stake, there are things that can be done to get immediate relief from the court. 

Regardless of your situation, meeting with an experienced family law attorney will help you better understand your options.  Putting off addressing your concerns will not generally improve your position, and can make obtaining the relief you want more difficult. 

Planning Your Separation or Divorce

Planning Your Separation/Divorce

               It may sound callous, but if you are considering a divorce or separation you need to be thinking about what you need to do when it happens.  In many cases, you have no advance notice, but when you are taking the initiative or you know it’s coming, there are some things that can make the process much easier to survive.

               Money:  A divorce or separation costs money, and you cannot count on getting it from your accounts or spouse once the process begins.  My experience is that all the accounts and lines of credit disappear when the other spouse suspects a divorce or separation is on the way.  It just makes sense to put what money you can in a separate account if it is available.  You should keep good records of where the money came from and what you used it for, but it’s far better to provide an accounting later than not have the money when you need it.  If you need to use charge cards, do the same thing.  Use the cards when the credit is available.  It is common to see charge cards put on hold or cancelled during the first stages of a divorce or separation.  Having enough money to pay your bills, support your family, and pay your attorney will make the whole process much less stressful. 

               It is possible to ask the court to order your spouse to pay child support, temporary spousal maintenance, and pay your debts.  Unfortunately, there is often not enough income to cover all your basic needs.  Further, courts in the early stages of this kind of litigation rarely award attorney fees, or if the court does make an award it is rarely enough to cover your actual fees and costs.  Even when everything goes great, it can take a month or more to get the money flowing.  You need to plan for your own support for at least a couple of months.

               Documents:  It can make the whole process go much quicker and cheaper if you can obtain copies of important documents before the split.  Your last several years tax returns and W-2’s, bank statements for all accounts, 401K and other investment reports, business records, etc. can all be useful.  Getting copies now can save the cost of obtaining them during the litigation, and will give your attorney the information he or she needs to do the work necessary to represent you in a timely and appropriate manner. 

               If you are gathering information, try to keep it somewhere that you can retrieve it after the split.  Maybe a friend or family member can hold the documents for you.

               Next time, we will talk about parenting issues and what you can do to protect your position.

Recent Change to DUI Law

Recent Change to DUI Law

Starting this Thursday at midnight, if you are arrested for a DUI, your vehicle will be impounded with a mandatory 12 hour hold.  Generally, defendants who are arrested for a DUI are released from custody rather than taken to jail.  If this happens to you, you will not be able to reclaim your vehicle right away.

Up until now the vehicle was released to another person to avoid towing and impoundment charges.  This will not happen now.  Even if the vehicle is owned by someone else, it will be towed.

Under the new law, the impounded car will be held for 12 hours. There are three exceptions in the law: If the car is owned by someone other than the person arrested, such as a business owner, the owner can reclaim the car at the impound lot; a registered co-owner can claim the car; and commercial and farm vehicles can be reclaimed by the legal owner as long as it is not the person arrested.

The thinking behind this new law is that a person under the influence could leave the police station and return to their vehicle.  This might put an unsafe person back on the road.  This happened in Whatcom County back in 2007, and a person was seriously hurt in an accident.  That person sued the county and the State Patrol, and subsequently won $5.5 million in a lawsuit.  The jury found the state patrol negligent because the woman took a cab back to her car after being arrested for drunken driving.  She was involved in the injury accident after she was returned to her car.

The result of this new law will, in theory, make the road safer from drunk drivers.  In all those cases where the driver was innocent of the charge, they will incur the cost of towing and impoundment regardless of their condition.  Further, they will be unable to retrieve their vehicle until the 12 hour hold is up.

A Timely Reminder

A Timely Reminder

                I’m sure that I sound like a broken record, but there are a couple of things we all need to keep in mind when dealing with the police.  As often as I’ve talked about this in the past, I still see several people every week that did not get the message.

                If you are detained by the police, you should always be courteous in your behavior.  Officers of the law are like everyone else, they respond better to people that are respectful and pleasant.  I have seen clients that spend a day or two in jail just because they were rude and obnoxious when confronted by the police.  It costs nothing to be nice, and you will always be better off for having made the effort.

                This may sound like a contradiction, but you need only be as cooperative as the law requires.  You have constitutionally protected rights, and you should use them.  You do nothing wrong when you ask to speak to an attorney before you make any statements to the officer.  (It is appropriate to provide you name, address, identification, vehicle registration, and proof of insurance).  If asked questions about your condition, what you have been doing, how much you have had to drink, etc. you may politely ask to speak to an attorney before you answer.  Do not take any “tests” or volunteer any information before you speak to an attorney.

                It may seem that the officer is just “making conversation” with you, but, believe me, everything you say and do will be used against you if you are charged with a crime.  Much of what you may be asked to do is directly calculated to gather evidence against you.  I have seen my share of police reports, and too often the officer used your statements and performance in these tests to establish his or her probable cause for your arrest.  Further, it is often the case that this information is used at trial to establish your guilt.  You need not incriminate yourself, and you should be careful that you aren’t “tricked” into helping make the case against you.

                I have heard many people charged with a crime tell the same story.  “The officer said that if I cooperated, I would able to go home and that everything would be alright.”  Then, when the subpoena came in the mail, and they see the police report, they find that all the “cooperation” has been used against them.

                Most of us were taught to respect police officers, and to tell the truth.  I’m not suggesting any disrespect, only that you not do yourself harm when you have the legal right to remain silent.  I’m not suggesting that you lie, only that you wait until you have spoken with legal counsel before you discuss the situation with the officer.  Knowing your rights is a great way to keep from being your own worst enemy. 

Child Support ~ When Does it Need to be Changed?

Child Support – When Does it Need to be Changed?

               Washington law allows for the modification of child support every two year, and, given special circumstances, more often.  The reality for most people is one or two modifications over a period of many years.  I often hear parents say that it just seemed like too much hassle to go through the modification process - especially if the first time was traumatic.  It’s not uncommon to see child support orders that are 10 or more years old.

               The first thing that you need to know is that, in most cases, if you wait you are not able to go back in time when the order is adjusted.  I recently met with a parent that had been underpaid on support for 8 years to the tune of over $500 a month.  The child missed out on $48,000 in support that could not be recaptured.  This kind of delay can cut both directions.  I have seen many cases where the parent paying support lost his or her job or had a dramatic reduction in pay, but kept on paying the higher support amount.  The result is often serious damage to that parent’s standard of living, and a downward spiral of debt.  Again, when the case is finally taken in for modification, the court will almost never make the modification retroactive.

               It just makes sense to include in your Order of Child Support language that provides for the exchange of financial information every year or two.  After parents have been separated for a while, it can be very difficult to estimate the other parent’s income.  By exchanging financial information, it makes it much easier to make a decision on whether to seek a modification.  If your Order does not include this language, parents are often willing to voluntarily exchange this information.  Voluntary cooperation can often avoid legal action and the cost of hiring an attorney.

               If you haven’t looked at your child support order in some time, it might be a good idea to have the Order reviewed.  The amount of support paid should be fair to all parties, and a periodic review can ensure that the amount of support is consistent with Washington State law.

What Can You Do About Visitation?

What Can You Do About Visitation?

            In many cases I see, a Parenting Plan has been entered, sometimes many years ago, and it just isn’t working anymore.  Kids get older, and the conflict between a child’s growing independence and the need to spend time with a parent can become a real source of disagreement.  One or both parents’ jobs may have evolved, and the timing for the visits in the Parenting Plan may become unworkable.  People move, and even relatively small increases in distance can effect the viability of scheduled visits.

            Washington law provides for modification of Parenting Plans, but the process can be difficult if both parents aren’t on board for the proposed changes.  It is often easier to just let the old Parenting Plan stay in place, but the result can be less and less time with the child and the possibility of a loss of a close relationship with the child.  It is important to have a useful and adaptive Parenting Plan that address the importance of maintaining the parent child relationship, and trying to the relationship work with an out of date Order is difficult at best. 

            If the original Parenting Plan was adopted when the child was young, there may not have been provisions for bigger blocks of time with the child.  As kids get older, it might be appropriate to divide the Summer vacation between the parents.  While this might not have worked at age 2, at age 8 it could be a real option.  Spending bigger blocks of time with the child can help reinforce and build a stronger bond between the parent and child.

            Whether you are just looking to “tweak” the current Parenting Plan, or you need a more comprehensive modification, it is far better to take action now than delay.  As a general rule of thumb, the longer you allow the visitation to remain inadequate or unworkable, the more difficult it can be to make a change.

            If you are able to discuss your issues with the other parent, and many parents can, an agreed modification can be done quite easily.  Mediation can often be used to resolve differences without resorting to open warfare.  If needed, the courts will be willing to resolve differences.  Regardless of the appropriate approach, your time with your child is fleeting, and each year that goes by without a workable Parenting Plan can never be replaced.

DUI Part II

DUI Part II

             There are a few other things that are important to note if you or a loved one is involved in an alcohol related arrest.  The more information you have now, the better job you will do helping your attorney.

            Last time we talked about making contact with an attorney right away.  Not only is this important in your DUI defense, but the criminal charge is not the only issue.  According to Washington law, even if you are not formally charged with a DUI, the Department of Licensing will administratively suspend your license to drive.  Depending on several factors, you could loose your license for a little as 90 days and as much as several years.

             Each person is given two pieces of paper that describe the administrative process, but, for many, so much is going on that this information gets lost or misplaced.  You have a very brief period of time to challenge the administrative suspension, and, if you miss the cut off, your license will be suspended.  Your attorney can help you with this process, but steps need to be taken right away or it’s just too late.

            For some jurisdictions, there could be a significant delay between when you are stopped for the DUI and when you are actually charged with the crime.  I’ve talked to people that were stopped, but they didn’t hear anything back from the police or court and just assumed nothing would happen.  It isn’t unusual for 2, 4, or even 8 months to go by before you receive the arraignment notice in the mail.  These delays are largely due to the back log in some courts, and will not stop, only delay, the prosecutor from bring charges.

             The delay in charging the crime can make collecting evidence in your defense more difficult.  The arraignment notice comes six months later, and who can really recall the details of that night?  It makes sense to assume you will be charged, and to start preparation right away.  When you are charged, you will have done the work to prepare your defense when the event is still fresh in your mind. 

            Finally, I has been my observation that many defendants go to their arraignment without an attorney.  This can be a mistake, especially if you have prior DUI arrests.  The court has the authority to set conditions for your release at the arraignment.  This can be as simple as law abiding behavior and to appear at future hearings.  At times courts will want to hold the defendant in custody and set a bail requirement for release.  If you are going to hire an attorney, you might as well get the benefit of his or her experience from the very first hearing.

            Next time we will talk about non-alcohol DUI’s.

Alcohol Related Crimes

Alcohol Related Crimes

             Yes, it’s finally Summer (although the weather may not feel much like Summer!).  With a lot of outdoor activities on the schedule, it seems like a good time to talk about alcohol and the law.

             Obviously, the best thing to do is not drink and drive, but, if you do, be ready for a close encounter with the law.  There will be DUI sweeps, and most police departments will be on heightened awareness patrols.  Here are some things to keep in mind:

             The bottom line is that if an officer wants to stop you, he or she will find a reason to pull you over.  It just doesn’t work to drive safe and slow if you have been drinking.  The basis for the stop, commonly known as “probable cause”, is easy to find, and once you are stopped the officer can usually make a case for investigating the “strong odor” of alcohol. 

             Be respectful to the officer, and provide your license, registration, and proof of insurance when requested.  I’ve said it before, but do not make any self-incriminating statements.  The officer will ask you questions, and it may seem like a simple conversation, but they will be used against you in court.  Be polite, but insist on speaking with an attorney before you answer any questions about your driving or alcohol consumption.  I know this will be hard to do, but it is very important to pay attention to this advice.  Many DUI convictions are made based on the defendant’s statements during the stop.

             You should not take the field sobriety tests.  These are voluntary, and you will not pass the tests.  Again, the test results will be used in court to establish your impairment.  Just politely decline the invitation to take the tests – it will pay big dividends later.

            At the police station, the same rules apply.  Make sure you speak with an attorney, and follow his or her advice.  The arresting officer will make use of the time at the station to try to gather more information from you – all of which will later be used against you.  Generally, it is a good idea to take the breath test.  The results are open to challenge in court, and, if you refuse, the level of proof of your intoxication becomes less important than the fact that you refused the test.

             Once you are released, you need to contact an experienced DUI attorney if possible the next business day.  The more time he or she has to prepare your defense, the better job he or she can do for you.   No one should try to “go it alone” when charged with a DUI.

            There are other issues we need to talk about, but they will have to wait for next time.  Please have a safe Summer!

What happens to those you love if something happens to you?

What happens to those you love if something happens to you?

             I believe it is human nature to put off planning for our own death.  Regardless of age or health, most everyone believes deep down that it will never happen to them.  As unrealistic as this may be, many people never take the time to plan for their eventual passing.

             The result of this procrastination can be a real disaster for your family, and, in the end, can result in much more harm than good.  Regardless of your age, health, and assets, appropriate estate planning can make a big difference to those you leave behind.  In Washington State, if you die without a valid will, the division of your estate will be controlled by the intestacy statute.  Under this law, someone will likely have to be appointed the administrator of your estate, and, after all just debts are paid, the remainder will be paid out according to a scheme adopted by the legislature many years ago.  Your wishes will be ignored (the thinking is that if you didn’t care enough to make a will, you get what you get).

             There are a number of issues that need to be addressed when creating a will.  Do you have young people who may receive assets under your will?  Have you ensured that all significant assets are included in your estate?  Will the right people get what you want them to receive?  Are the right people in position to make important decisions, and to ensure that your last wishes are carried out?  Have you considered the tax implications to your estate?

             I have seen multi-million dollar estates with no will.  The tax hit was scary, and largely avoidable had he done a little advance planning.  I have seen young adults receive significant amounts of money, with no strings attached, and then seen their lives fall apart.  I have seen loved ones excluded from any share of an estate, simply because there was no prior planning.  You can easily ensure that your friends, family, and loved ones are taken care of by making sure that you do just a little advance planning.

             It is never fun to contemplate your death, but by showing some responsibility now you can save your loved ones from even more heartbreak later.  The process is really very simple – any estate planning attorney can walk you though the process.  You can usually find an attorney that will provide you with a free or low cost consultation, and, at a minimum, you will leave the meeting with a much better understanding of what you need to do to set your estate in order.

             Take an hour and do the right thing for those you will leave behind.  It’s simple, low stress, and you will feel better after it is done.

Planning for Incapacity

Planning for Incapacity

             The truth is, as people live longer it is more likely that there will come a time when many people are unable to make their own life decisions.  Whether it is an accident, surgery, or major illness, you may be put in a position where important decisions about your health care or finances need to be made, and you are unable to make those decisions.   The length of your incapacity may be short or long term, but important decisions will need to be made.

             If you roll the dice and hope that this never happens, you run the risk that these decisions will not be made the way you would want them made.  If you become incapacitated for any reason, someone will likely step up and take on the responsibility – just not necessarily the person you would pick.  In all likelihood a friend or family member would be forced to hire an attorney and seek to be appointed your guardian.  This can be an expensive and lengthy process, and in the end you get the person the court appoints for the job.

             I have seen many cases where friends and family, often with the best of intentions, get into very ugly legal disputes over who should be appointed guardian for an incapacitated person.  This can be very expensive, and the end result is often a divided and angry family.

             Even if you are married, your spouse may not have the authority, in the event you are incapacitated, to make all the decisions needed to manage the family finances and your health care.  As an example, if it was necessary to mortgage property, and both your names are on the title, your spouse would not likely be able to obtain funds without your consent.  In the end, even your spouse might be forced to seek a guardianship.

             Before any of this happens, it is simple enough to grant a power of attorney to the person or persons you choose to have this authority in the event that you become incapacitated.  You can pick the person, give the direction you want, and better ensure that the decisions made are consistent with your desires.  You can control who makes the decisions and how the decisions are made, if you act now.

            You can determine under what circumstances the power of attorney becomes active, and you can always take the power of attorney away.  This can be done for a small fraction of the cost of a guardianship, and you have all the control.  Planning ahead is a prudent and cost effective way to ensure that the person you select has the authority to immediately step in and help you in your time of need.

Estate Planning: The long and short view

Estate Planning:  The long and short view 

            We have talked about estate planning before, but I thought it might be helpful to take some time and cover several topics over the next month.  For today, I’d like to talk about some general issues and ideas.

            Regardless of the size of your estate and your family, taking the steps necessary to ensure that if you are incapacitated or if you die your wishes regarding your medical care, financial management, and the disposition of your estate need to be appropriately planned.  The best approach is to get some quality legal and financial advice before you take concrete action.  Tax planning can be a big part of making sure that your estate is managed in accord with your goals.  The right kind of tax planning can legally minimize taxes to you, your estate, and your heirs.  There are many ways to approach realizing your goals, but the first step needs to begin with good solid advice.

            An estate planning attorney can give you a good idea on how to achieve your goals.  Coupled with sound tax planning, the end result will be a plan that maximizes your assets and assures that your heirs get what you intend for them in the manner you want them to receive your gifts.  As with most things in life, prior planning will best ensure an appropriate outcome.

             Talk to any CPA or attorney and you will hear horror stories of people that either ignored their estate planning or relied on the internet for advice.  Last wishes not honored, sizable shares of the estate going to legal fees and taxes, and lives ruined due to a lack of guidance in making and receiving a bequest.  Regardless of your goals, the first step is to get quality advice.  The estate planning the flows from this advice will ensure that your goals are met in the least expensive and most effective manner possible.

- Next time, we will talk about planning in the event you are incapacitated or otherwise unable to make your own medical and financial decisions.

New Beginnings & Post Secondary Education Issues

New Beginnings

Graduation is right around the corner.  There is always so much to do that it can be hard to think about the future.  If your child is graduating from high school this Spring, you really do need to take a couple of minutes and consider you and your child’s financial future.

Most urgent is to resolve any post-secondary education issues.  Who will pay how much for the child’s college or trade school?  In almost all cases, you have a very clear deadline for when you have to exercise your right to resolve this issue.  Usually, the deadline is the child turning 18 or graduating from high school, which ever occurs last.  If your child is now 18 and will graduate this June, your are almost out of time to take steps to preserve your right to ask a court to order the other parent to contribute to the child’s post-secondary support.  The day after graduation is too late!

 A further concern is if there are other younger children.  The Order of Child Support will no longer apply to the oldest child, and the total amount of child support will decrease.  Unfortunately, the new lower payment amount is usually not accurate.  The way child support is calculated in this state, the amount per child is less the more children you have.  A modification of child support at this time will ensure that the correct transfer payment is ordered, and this can be done at the same time post-secondary support is sought.

 

If you have a graduation coming up – Congratulations!  Enjoy this time in your child’s life.  With all the celebrating, don’t forget the immediate future.  Failure to take action now can have a very negative financial effect on both you and your child.

Things No One Wants to Think About.......

Each of our deaths is not a pleasant thing to think about.  Over the years I have seen
hundreds of people put off dealing with this issue.  For many, it was too late to take the steps
necessary to get there house in order. It may be human nature to somehow believe that it will never happen to you (or at least not yet).

If you have children under the age of 25, you may be shocked to know what can happen if you die without a will.  I most cases, any child under the age of 18 will not have appropriate access to any monies left to him or her until reaching age 18.  This can mean that the guardian of the child will be forced to raise your son or daughter without the benefit of these monies.

Maybe worse, once the child reaches age 18, he or she will get all the money with no strings attached. Even if you child is in his or her early 20’s, receiving even a modest inheritance with no string attached can be life altering – and usually not for the best.   I have seen lives ruined by young people inheriting money that he or she is ill prepared to manage or use in a mature manner.

It is so simple to make provisions that protect your child, and ensure that his or her inheritance is managed and used for the benefit of the child.  Once the child is a little older, then they can take responsibility for the bequest.

This advice is not just for people with young children.  Grandchildren can often inherit, and the same
caution applies.  A simple trust, written into your will, can go a long ways toward ensuring your heirs will receive his or her inheritance in an appropriate and well managed fashion. 

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Who Makes Decisions for the Incompetent?

Who Makes Decisions for the Incompetent?
If you have a relative who is unable to make decisions for his or her self, it is time for you or another close family member to step up and ensure this relative gets the care he or she needs and deserves. Unless this person has already taken the steps to grant authority to make decisions on his or her behalf, it is important for someone who really cares to obtain this authority. In Washington, a guardianship can create a legal relationship that allows you to make important decisions for this person.

A guardianship allows the guardian to make some or all decisions regarding an incompetent person’s finances and health care. In some cases, it may not be necessary to have a full guardianship – for example, if the person in need can make their own health care decisions, but is unable to manage their own financial affairs. Regardless of the scope of the guardianship, the guardian can protect their ward and make sure that their affairs are appropriately managed.

This can be a very difficult decision. It is often the case that a person’s ability to manage their own affairs gradually diminishes. It can be difficult to determine when it’s the right time to take action, and some people are reluctant to give up control. The timing really depends on the individual situation, but, as a rule of thumb, if this person is not making appropriate financial or health care decisions on their own, the time may be right to seek the authority to help.

As I mentioned above, it really makes sense for anyone who is concerned about his or her future care to take the steps now to have appropriate powers of attorney prepared. This is far less expensive than a guardianship, and you get to pick who will make your important care decisions if you become incapacitated or incompetent. It is only when you really need these protections put in place that it may be too late. Once a person loses the ability to execute a power of attorney, a guardianship may be the only remaining viable option.

Alternative Dispute Resolution

Alternative Dispute Resolution

In trying to reach an acceptable resolution in most kinds of family law disputes, the use of an alternate dispute resolution vehicle can be most effective. It may seem that your problems have gone way beyond trying to talk it out, but there are a lot of great reasons to try mediation services.

Mediation is frequently successful in resolving family law issues. Rather than waiting for a court to resolve your problems, mediation can be done very quickly. The cost of mediation is very reasonable when compared with the cost of going through the court system. In my experience, the results from mediation are almost always more acceptable to the parties than a court ruling. Finally, the stress and emotional impact of mediation is far less than going to trial.

In every case, mediation allows both sides to air their issues, test the waters for any and all ideas that might resolve the dispute, and get the guidance and feedback from a very experienced mediator. Getting the “reality check” from such an experienced person is very helpful in getting to a final agreement. I would estimate that more than 70% of my cases are resolved in mediation.

Even if you are unable to get the issues resolved in mediation, you will be much closer to understanding exactly what issues are keeping you apart. This can really help focus your future negotiations, and still bring about a much more appropriate final resolution to your dispute.

Working with your attorney, mediation is both cost effective, expedient, and really helps preserve your future relationship with the other party. Courts can and will decide issues, but often neither side is happy with the outcome. This can cause future disputes, and make it difficult to work with the other party. Mediation helps create a sense of ownership in the final solution, and this is a great first step to resolving future disputes.

Child Support in the New Year

Child Support in the New Year

There are a number of good reasons to take a look at your child support. It is not uncommon for parents to just let the old order “ride”, not wanting to stir up the old hard feelings and conflict. While a desire to not cause problems is understandable, the under or over payment of support is a problem you have every right to correct. If it has been a couple of years since you last had support looked at, if a child has turned 12, if the medical insurance is a problem, if a child is no longer needing day care services, or there has been a significant change in income, the time is ripe for a quick look at the support payment.

In most cases, there is little that can be done to go back in time and correct problems, day care is an exception, but for every month that goes by you stand to loose out on any benefit a support modification may bring. At a minimum, you can at least confirm the income of the other parent, so that you can make an educated decision about your next step. There are new child support laws that went into effect about 15 months ago, and these new laws can make a big difference in the child support payment.

It’s easy to put off dealing with money issues, but, if you haven’t looked at support in a while, now is a good time. 2010 tax returns are being prepared, w-‘s are available, and, with the changes in the child support laws, now is a great time to get the support right.

Ringing in the New Year

Ringing in the New Year

I does seem like we are a little more motivated to get our lives in order during the new year. It’s so easy to put things off, but the risk can be significant. Now is the time to take a look at your personal issues and take the steps needed to get them handled.

It seems like more people are thinking about estate planning after Christmas. Who will make my medical and financial decisions for me if I am unable to do it myself? Will my estate go to the people I want to receive it? Will minors that may receive bequests be protected, and the bequest properly managed and distributed?

All of the above are good questions, and if the answer to any question is “I don’t know”, then it is time to get some professional advice. You can usually meet with an attorney at little or no cost who can explain estate planning and how to best achieve your goals. All you are out is your time, and the advantages to getting educated on estate planning issues can really pay off.

If you have not sought help with your estate planning needs or if it has been years since you last talked to an attorney about these issues, now is a great time to do the responsible thing. A little time and trouble now can save your family and loved ones a great deal of sorrow and expense later.